NACE 42.2 – Construction of Utility Projects | Public Tenders

Definition: NACE 42.2 covers the construction, refurbishment and maintenance of utility lines for electricity, gas, water and telecommunications as well as their associated facilities. This includes above- and below-ground pipeline systems, cable routes, pumping stations and distribution stations.

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

What does NACE 42.2 cover?

NACE 42.2 (Construction of utility projects for electricity, gas, water and telecommunications) classifies companies that build and maintain infrastructure lines and networks for public utility services — a core area of municipal and national infrastructure supply.

Group 42.2 within Section F (Construction) and Division 42 (Civil engineering) is divided into three classes:

Public contracting authorities under NACE 42.2 include municipal utilities, water associations, energy suppliers with public mandates, network operators (utility contracting entities under SektVO/BVergG), federal states and municipalities, and entities regulated by the Federal Network Agency. Owing to their particular importance for public services, the majority of contracting authorities are subject to utilities procurement law.

Public Tenders: Scope of NACE 42.2

Utility pipeline construction is one of the consistently in-demand service areas in public procurement — the energy transition, fibre optic deployment and water infrastructure are driving tender volumes to record levels across Europe.

Typical contract types

• Water supply and sewers: Renewal of drinking water mains, new pressure pipelines, sewer rehabilitation by inliner and open-cut methods, treatment plant connections
• Gas network extension and rehabilitation: Renewal of low-pressure networks, conversion to hydrogen infrastructure, renewal of pressure regulator stations
• Electricity and cable infrastructure: Cabling of medium-voltage lines, transformer station connections, building connection extension
• Fibre optic and telecommunications infrastructure: Civil engineering for fibre access networks (FTTB/FTTH), conduit installation, cable pulling and splicing in municipal fibre rollout
• District heating: New construction and extension of district heating networks as part of the heating transition, building transfer stations
• Special structures: Pumping stations, reservoirs, inverted siphons, crossing structures for waters and transport routes

Thresholds and procedure types

Contracts in utility pipeline construction frequently fall under utilities procurement law (SektVO in Germany, the utilities section of BVergG 2018 in Austria), which applies to suppliers in the water, energy and transport sectors. The EU threshold for works contracts in the utilities sector is EUR 5,538,000 (as of 2024/2025). Below the thresholds, municipal procurement platforms and official gazettes provide the relevant notices.

Relevant CPV codes for NACE 42.2

The link between NACE 42.2 and tender research is provided by CPV codes, 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 such as the Federal Procurement Platform (Germany) or the Federal Procurement Office (Austria).

For contracting authorities and bidders

Public contracting authorities

Municipal utilities and water associations represent the largest group of contracting authorities under NACE 42.2. In Germany, these are often standalone municipal utility GmbHs or municipal own-account operations acting as utility contracting entities under SektVO. Supraregional grid operators such as Tennet, Amprion or regional gas network operators are also subject to utilities procurement law. In Austria, energy suppliers (EVN, Wiener Netze, Salzburg Netz) award contracts as utility contracting entities, while water associations, depending on their size, apply either classical procurement law or the utilities regime.

In fibre rollout, special-purpose associations, municipal in-house entities and network operators co-financed by public funds are increasingly active as contracting authorities — the regular procurement rules apply where public funds predominate.

Companies and bidders

Construction companies under NACE 42.2 typically must provide the following suitability evidence for EU-wide tenders:

• Trade authorisation: Trade licence as a gas and water installer, civil engineering contractor or electrical engineer, depending on the trade
• Technical capacity: Reference projects with comparable nominal diameter, pipeline length or installation depth
• Economic and financial capacity: Turnover evidence, liability insurance for utility infrastructure
• Certifications: DVGW certifications for gas pipeline construction, ÖVGW authorisations in Austria, ISO 14001 for environmentally sensitive civil engineering

Owing to the complexity of pipeline works — particularly when coordinating several utility divisions simultaneously — general-contractor models and joint bidders are widespread.

Frequently asked questions on NACE 42.2 and public tenders

Which companies fall under NACE 42.2?
Civil engineering contractors, pipeline builders, cable contractors and fibre civil engineering providers that predominantly build utility lines for water, gas, electricity or telecommunications. Classification is based on the economic focus of the activity.

Do municipal utilities apply classical procurement law or utilities procurement law?
Municipal utilities and municipal suppliers active as utility contracting entities in the areas of drinking water, gas or electricity are subject to utilities procurement law (SektVO / BVergG utilities section). The key difference: in the utilities sector there is more procedural freedom, and there are no direct-award thresholds at national level in the same way as under classical procurement law.

How do I find fibre tenders below EU thresholds?
Municipal fibre rollout projects below the EU thresholds (works area: EUR 5,538,000) are published on national and regional platforms: DTVP, Vergabe24, evergabe.de in Germany; Auftrag.at, Ankö in Austria. In addition, broadband special-purpose associations often publish their own procurement portals.

Is NACE classification a prerequisite for bidder suitability?
No. NACE classification is a statistical instrument. The relevant factors for the suitability assessment are trade authorisations, technical references and economic capacity — not the NACE classification in the commercial register.

NACE 42.2 in context: Section F and Division 42

NACE 42.2 is part of Division 42 (Civil engineering) within the construction Section F.

• NACE F – Construction: Parent section covering all construction activities
• NACE 42 – Civil engineering: Division covering road, water and pipeline construction
• NACE 42.1 – Construction of roads and railways: Road, motorway and rail construction
• NACE 42.9 – Construction of other civil engineering projects: Port facilities, dams, industrial sites

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