NACE 68.3 – Real Estate Activities on a Fee or Contract Basis | Public Tenders

Definition: NACE 68.3 covers the brokerage and the administration of land and buildings on behalf of third parties, i.e. on a fee or contract basis. In public procurement, this group is particularly relevant for facility management services, building administration and real estate brokerage — services that public contracting authorities regularly award to specialised companies.

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

What does NACE 68.3 cover?

NACE 68.3 (Real estate activities on a fee or contract basis) classifies companies that administer, rent out or broker real estate on behalf of owners — a growing segment in public procurement summarised under the term facility management (FM).

Group 68.3 within Section L (Real estate activities) and Division 68 is broken down into two classes:

Public contracting authorities award NACE 68.3 services primarily where they have their own properties administered by external specialists. This includes schools, hospitals, government buildings, public housing and municipal institutions of all kinds.

Public Tenders: Sector NACE 68.3

Facility management is among the highest-volume service segments in public procurement — the operation and administration of public buildings is increasingly outsourced to external service providers.

Typical types of contract

• Integrated facility management (IFM): Overall package combining commercial, infrastructural and technical building management
• Technical building management (TGM): Maintenance and operation of heating, ventilation, air conditioning, sanitation, electrical (HVAC/MEP)
• Infrastructural building management (IGM): Cleaning, grounds maintenance, security, caretaking, winter service
• Commercial building management (KGM): Tenant management, service charge accounting, insurance administration
• Housing administration for municipal housing companies: Property administration services for social housing
• Energy management and contracting: Optimisation of energy consumption of public properties

Thresholds and procedure types

Facility management contracts are classical service contracts and are fully subject to public procurement law. The EU threshold for service contracts (2024/2025: EUR 221,000 for central authorities, EUR 443,000 for other public contracting authorities) is decisive. Due to the frequently high contract volumes and long terms (3–5 years with extension options), an open procedure or a negotiated procedure with prior selection is usually applied.

Relevant CPV codes for NACE 68.3

Facility management and real estate administration are identified in tenders through specific CPV codes — the range extends from technical building operation to infrastructural services.

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

Who is NACE 68.3 relevant for in public procurement?

Public contracting authorities

All public bodies with their own building stock are potential contracting authorities in the NACE 68.3 area. In Austria, the Federal Real Estate Company (BIG) awards extensive FM services for the federal government; federal states and municipalities award contracts via their building offices and property operators. In Germany, the Institute for Federal Real Estate (BImA) is a key contracting authority; federal states and municipalities have their own building management organisations. School authorities, hospital operators and municipal housing companies are further important contracting authorities.

Companies and bidders

FM service providers participating in public tenders must typically provide the following eligibility evidence:

• Authorisation and certification: ISO 41001 (facility management), ISO 9001 (quality management), ISO 14001 (environmental management)
• Technical capability: Reference projects of comparable size (area, scope of services, contract volume)
• Personnel resources: Evidence of sufficient specialist staff, in particular for technical building management
• Digital capability: CAFM systems (Computer Aided Facility Management), BIM expertise on new-build projects
• Economic capability: Liability insurance, sufficient annual turnover, equity ratio

NACE 68.3 in context: Section L and Division 68

NACE 68.3 is part of Division 68 (Real estate activities) and forms the link between the real estate industry and the service sector in public procurement law.

• NACE L – Real estate activities: Parent section
• NACE 68 – Real estate activities: Division covering all real estate activities
• NACE 68.1 – Buying and selling of own real estate: Real estate transactions by public bodies
• NACE 68.2 – Renting and operating of own or leased real estate: Renting by public bodies

Frequently Asked Questions on NACE 68.3 and public tenders

What is the difference between integrated and single-trade facility management? In integrated FM (IFM), all building management services are awarded to a single general service provider. In the single-trade approach, technical, infrastructural and commercial services are tendered separately. IFM is common for large properties, while smaller contracting authorities often award individual trades separately.

What are typical terms for FM contracts of public bodies? Usual basic terms are 3–5 years with one or two extension options of one year each. For larger projects (e.g. school complexes, hospitals), longer terms of up to 10 years also occur where significant initial investments by the service provider are required.

Which certifications are typically required for public-sector FM tenders? Most frequently required are ISO 9001 (quality management) and ISO 14001 (environmental management). ISO 41001 (facility management) is increasingly gaining importance. For security-critical properties (e.g. justice, police), additional security clearances may be required.

Can division into lots be required for FM tenders? Yes, public contracting authorities are in principle obliged to divide contracts into lots in order to involve SMEs (section 97(4) GWB, section 76(2) BVergG 2018). Bundling into a single contract is only permissible with a convincing justification (e.g. technical or economic indivisibility).

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