Reducing bureaucracy in Saxony-Anhalt: start for new construction contracts!

Reducing bureaucracy in Saxony-Anhalt: start for new construction contracts!

There is a breath of fresh air in the political landscape in Saxony-Anhalt: the black-red-yellow coalition has put reducing bureaucracy at the top of the agenda. Exciting changes are coming with the new draft law, which is intended to make it easier to award construction contracts. In Magdeburg, the CDU, SPD and FDP presented their plans that aim to significantly reduce the hurdles for companies and municipalities. MDR reports, that one of the main points of the reform is the temporary increase in the thresholds for awarding contracts.

Especially in the case of services, the documentation requirements are to be eliminated for orders up to a value of 221,000 euros. For construction work, the threshold will even be raised from 120,000 euros to around 5.5 million euros. A measure that is considered necessary by many in the economy, because the current bureaucratic hurdles are often too high: As the managing director of a construction company, Michael Truthmann, puts it, many craft businesses are now avoiding public tenders because the effort is too great for them.

Criticism and concerns

Despite the positive general mood from ministries and companies, there are also critical voices. The German Federation of Trade Unions (DGB) expresses concerns that the reforms will undermine the collective bargaining and procurement law. There is great concern that only ten percent of contracts awarded will be recorded. This would not only endanger fair competition, but also affect quality and working conditions in the affected sectors.

Another aspect that is not met with much approval is the feared new bureaucratic hurdles. Felix Pakleppa, general manager of the Central Association of the German Construction Industry (ZDB), warns of additional burdens for medium-sized businesses, as many proposals could also complicate processes. The ZDB is calling for a revision of the draft laws and fears that only large corporations in the construction sector will actually benefit from the reforms. The craft sheet refers to these critical voices and the warnings about disadvantages for smaller companies.

Nationwide developments

The discussion in Saxony-Anhalt is part of a larger trend at the federal level. Decisions on two important laws are pending in the federal cabinet, which are also aimed at reducing bureaucracy. The aim of the Procurement Transformation Act is to comprehensively simplify and modernize procurement procedures. The Cabinet of Ministers is planning to reduce numerous verification requirements for companies and to promote digitalization in order to significantly reduce the economic effort. Investmentweek highlights that this could also integrate social and environmental criteria into the award procedures.

In this context, Building Minister Klara Geywitz has initiated a reform of the building code in order not only to accelerate housing construction, but also to promote climate protection. Measures such as shorter approval periods and reduced reporting requirements are part of this ambitious plan. The aim is to create the framework conditions for contemporary and sustainably oriented construction.

The next steps are already clear: The draft law to amend the Collective Bargaining and Procurement Act is now being discussed in parliamentary committees. The discussion is in full swing both in Saxony-Anhalt and at the federal level. It remains to be seen how the political landscape will evolve in light of these impending reforms.