Cyprus construction sector seeks closer government coordination

The Cyprus construction industry moved towards closer coordination with the government following a broad working meeting organised in Paphos by the Federation of Building Contractors Associations of Cyprus (Oseok) in the presence of transport minister Alexis Vafeades.

During the discussions, participants highlighted a range of critical issues affecting the sector, covering both institutional and operational challenges.

Among the key concerns raised were delays in licensing procedures for private projects as well as problems related to the award and supervision of public contracts.

At the same time, the sector is facing a significant labour shortage, with a lack of workers leading to delays in the implementation of projects in both the private and public sectors.

The meeting also underlined the importance of promoting standardised contracts of the Joint Contracts Committee, which are seen as a way to resolve disputes arising during the execution of private sector projects.

It was noted that approximately 8,000 building permits are issued annually, while around 1,200 contracts are signed each year through the committee.

Particular emphasis was placed on the need to strengthen the resilience of the construction sector, enabling it to respond effectively to external pressures while maintaining its contribution to economic growth.

The discussion concluded with agreement on the creation of a permanent task force to enhance coordination between stakeholders and the state.

This task force will include representatives from all relevant bodies and will meet on a monthly basis to record positions and submit proposals to the government.

“It is time to look ahead,” said Oseok president Stelios Gavriel, outlining the framework of the initiative.

The agenda of the task force will also include strengthening construction companies so they can meet both private and public sector needs.

The minister indicated that the public sector will require 150,000 square metres of office space in the coming years to meet its operational needs.

“We want organisations from Cyprus to be able to undertake the projects carried out by the state,” said Vafeades.

“We are here to regulate whatever is needed so that the market can function better,” he added.

Regarding public works, all participants stressed that the current system for executing public contracts is problematic.

The establishment of the task force is expected to act as a catalyst for resolving long-standing issues within the sector.

The construction industry contributes 15 per cent of Cyprus’ GDP and employs 47,000 workers, alongside a large number of scientists and technical professionals.

“Behind this activity lies a strong technical and scientific workforce, which forms the foundation for development, innovation and the quality of projects,” said Gavriel, stressing the sector’s wider importance.

“All of us together form the sector,” he added, highlighting the collective responsibility of stakeholders.

The initiative aims to address the growing challenges facing the construction industry, at a time when building activity remains crucial to Cyprus’ real economy.

The meeting brought together the presidents of key professional bodies, including representatives from the architects association, civil engineers association, construction economists and quantity surveyors association, and the Joint Contracts Committee.

Members of the boards of these organisations and representatives of Oseok’s regional associations also took part in the discussions.

From the government’s side, the minister emphasised the importance of ongoing dialogue with market stakeholders, recognising that the modernisation of the construction industry is a key priority.