NACE 41.1 – Development of Building Projects | Public Tenders

Definition: NACE 41.1 covers the economic activity of land development and the work of developers who develop, market and realise building projects on their own account. This group sits at the interface between the real estate and construction industries and is relevant in public procurement particularly for urban development and housing projects.

Legal basis: NACE Rev. 2 (Regulation (EC) No 1893/2006) · Last updated: January 2026

What does NACE 41.1 cover?

NACE 41.1 (Development of building projects) classifies companies that develop building land, prepare it technically and realise residential or commercial projects as developers on their own account — an area of growing relevance in public and subsidised housing.

Group 41.1 is part of Section F (Construction) and Division 41 (Construction of buildings) and essentially comprises the following class:

Typical public contracting authorities in this area are municipalities, urban housing companies, municipal development companies, federal property companies (BIG in Austria, BImA in Germany) and public-law housing developers.

Public Tenders: Site Development and Developer Services

Land development and project development services are tendered in the public sector mainly within the context of urban development projects, public housing and infrastructure schemes — with increasing volumes driven by municipal housing programmes and EU-funded urban renewal.

Typical contract types

• Land development: Planning and construction of site infrastructure such as roads, sewers and utility lines for new building areas within municipal local development plans
• Urban development agreements and project development: Public authority as partner in mixed projects, subsidised housing development on municipal sites
• Award to developers in housing: Tendering of housing projects to non-profit or private developers with social-housing obligations
• Assisted living and social real estate: Development and construction of assisted living facilities, refugee accommodation and social centres
• Revitalisation of brownfields: Development of conversion areas (former industrial sites, barracks) under municipal sponsorship
• Development agreements: Transfer of the development obligation to private bodies pursuant to §§ 11, 124 BauGB (Germany) or state-law provisions (Austria)

Thresholds and procedure types

Contracts in land development and project development range, depending on scope, both below and above the EU threshold for works contracts (EUR 5,538,000, as of 2024/2025). Pure development services are often tendered in national procedures; larger urban development projects require an EU-wide open or restricted procedure, and in cases of particular complexity also a competitive dialogue.

Relevant CPV codes for NACE 41.1

The link between NACE 41.1 and specific tenders is provided by CPV codes (Common Procurement Vocabulary), which must be stated in every TED notice.

Current tenders with these CPV codes can be found on TED (Tenders Electronic Daily) and on national procurement platforms.

For contracting authorities and bidders

Public contracting authorities

Under NACE 41.1, municipalities and cities act both as contracting authorities for development services and as contractual partners in urban development projects. In Austria, the Federal Real Estate Company (BIG) and non-profit housing associations (GBV) play a central role. In Germany, municipal housing companies and the Federal Institute for Real Estate (BImA) are key players in the realisation and development of public properties. European funding programmes (ERDF, Cohesion Fund) also finance urban development projects that require public tenders under EU procurement law.

Companies and bidders

Developers and site development companies participating in public tenders under NACE 41.1 typically must provide the following suitability evidence:

• Trade authorisation: Trade licence as a developer, real estate developer or construction trade
• Technical capacity: Reference projects of comparable size and type (housing units, development area, project value)
• Economic and financial capacity: Equity, creditworthiness, financing evidence
• Certifications: ISO 9001 (quality management), sustainability certifications (ÖGNI, DGNB) for subsidised projects

For complex urban development projects, suitability is often assessed in an upstream expression-of-interest procedure or call for participation.

NACE 41.1 in context: Section F and Division 41

NACE 41.1 is part of Division 41 (Construction of buildings) within the construction Section F — one of the most volume-intensive sections in public procurement.

• NACE F – Construction: Parent section covering all construction activities
• NACE 41 – Construction of buildings: Division covering development and building construction
• NACE 41.2 – Construction of buildings: Building construction, residential and non-residential buildings
• NACE 42 – Civil engineering: Road, water and pipeline construction as a complement to site development

Frequently asked questions on NACE 41.1 and public tenders

Which companies fall under NACE 41.1?
Project developers and developers who develop land or develop and market construction projects on their own account. Companies that build exclusively on behalf of third parties are generally classified under NACE 41.2.

How does NACE 41.1 differ from NACE 41.2 in procurement law?
NACE 41.1 concerns project development and site servicing — the phase before and alongside actual construction. NACE 41.2 covers the pure construction activity. In tenders, both areas can be combined, for example when a contracting authority awards turnkey construction including site servicing.

Are urban development agreements subject to tendering?
Urban development agreements under § 11 BauGB (Germany) are not automatically public contracts but can become subject to tendering if they involve construction services for consideration. The distinction depends on the individual case and should be reviewed legally.

Last updated: January 2026
All information is provided without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.