Report

11 Construction and Related
Engineering Services 1
INTRODUCTION
With its close links to public works the construction
and related engineering services sector has always been
considered as a strategically important industry for
creating employment and sustaining growth. For
developing countries the sector carries particular
importance because of its link to the development of
basic infrastructure, training of local personnel, transfer
of technologies, and improved access to information
channels. Further, the EC suggests that for developing
countries, liberal market access commitments in this
sector will attract foreign investments (EC 2000).
Though this sector and some other services such as
architectural and integrated engineering are distinct,
they are closely interrelated sectors. It is recognised that
the supply of construction and related engineering
services involves services provided by professional
engineers and that the two categories of services overlap
each other. Brazil also expresses similar views that there
is an evident interrelation between the supply of
construction services and the supply of architectural,
engineering, integrated engineering and urban planning
and landscape architectural services, even though these
latter are placed separately in the W/120, under the
grouping of professional services (Brazil 2001). In fact,
Brazil adds, construction firms often provide all of these
services in an integrated manner as they are used
throughout the development of an investment project,
including the stages of pre-investment (e.g. feasibility
studies), project execution (e.g. architectural and
structural design), and project implementation (e.g. the
physical construction per se). Because strong linkages
exist between construction services and engineering,
architectural and integrated engineering services, Brazil
argues, the overall impact of liberalisation in construction
services is expected to also depend on the extent
of liberalisation in engineering and integrated engineering
services. Therefore, while discussing the commitments
in construction services, it would be appropriate
to include the commitments undertaken in these professional
services as well.
Description of the Sector 2
This sector is classified in the document ‘Services
Sectoral Classification List’ in MTN.GNS/W/120 as ‘3.
Construction and Related Engineering Services (CPC
511–518)’. The activities covered under this heading
are the following:
1. General construction work for buildings (CPC
512): This item includes construction work
(including new work, additions, alterations and
renovation work) for all types of buildings,
residential or non-residential, whether privately or
publicly owned.
2. General construction work for civil engineering
(CPC 513): This item covers construction work for
structures other than buildings such as highways
and streets, railways and airfield runways, bridges
and tunnels, waterways and harbours, dams,
pipelines, communication and power lines, mining
and manufacturing plants, and stadia and sports
grounds.
3. Installation and assembly work (CPC 514, 516):
This item includes such activities as the assembly
and erection of prefabricated constructions,
installation work for heating and air conditioning,
water plumbing, gas fitting, electrical wiring, fire
1
The chapter is based on the report authored by Shailendra Kumar.
2
This is based on a Background Note by the Secretariat on Construction and Related Engineering Services, WTO, Document
No. S/C/W/38, 8 June 1998.