“Give me six hours to chop down a tree, and I will spend the first four sharpening the axe.”

Full service – Project Sweden

The one-stop-shop solution for foreign contractors who have a project waiting in Sweden. You will receive an all-encompassing plan tailored to your specific Swedish project to ensure a smooth execution from start to finish.

Price range: 50 000 – 100 000 SEK

Working in the Swedish construction sector can be a sobering experience for many foreign contractors who are doing it for the first time. The offered prices are often higher than in the home country, but they come with a mountain of obligations. If you are not fully aware of the meaning, cost and consequences of said obligations you might be in for a rude awakening. We will together conduct an analysis of your situation, and you will receive a clear proposal for a package designed to simplify your stay, thereby saving you time and costly penalties.

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More pay but more obligations – risk of pitfalls

This service was developed to help both foreign and Swedish contractors to engage in mutually beneficial cooperations. The common perception of Sweden is that it pays better to carry out projects there compared to the home country. Many projects however require contractors to sign a collective bargaining agreement. This agreement brings with it a plethora of obligations. The design of these agreements are based on the conditions of large construction companies as reference, which means that it may be difficult for smaller companies to comply with the terms. Large companies tend to have full-time employees who are familiar with collective bargaining agreements. Smaller companies do not have this opportunity. Add on top of this, the extra hurdles unique to foreign contractors that they must face and you have a potential minefield of regulations where a misstep can end in a profitable project becoming a losing one.

Avoid headaches and unnecessary penalties

The trick to minimizing the risk of unexpected costs and disruptions is knowing in advance what they are and what causes them. For a foreign contractor, the realities of the sector are different compared to Swedish local contractors. In addition to having to know Swedish rules and practices, foreign contractors are also faced with regulation of their home country, new construction standards, additional compliance risks stemming from moving workers between countries, currency differences, language barriers and a lack of a local network. All these parts create a complex whole.

My aim is to lay all aspects of the project in front of you in a clear and comprehensible manner, and help you choose the best setup for carrying out the project. I will help you strategically allocate resources to optimize overall returns by effectively balancing investments across different factors such as process simplification, risk management, worker satisfaction, and pricing negotation.

The price of the service depends on several factors:

  • Choice of company form with which to take on the project.
  • Type of collective bargaining agreement required.
  • Number of workers.
  • Complexity of worker rotation and expectations (tax residence, medical insurance, etc.)

To receive an estimated price quote, please leave a detailed description of your specific situation. You can also read the case studies below to get an idea of what factors determine the price.

As always you are welcome to request a free first consultation.

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What the service includes

  • Analysis of the project offer from your Swedish client. Is the project economically viable?
  • Determining which collective bargaining agreement is needed and the best way to sign it.
  • Cost-analysis and risk assessment.
  • Comparing different company structures to ensure the most resource efficient execution of the project.
  • Connecting with Swedish suppliers to reduce construction material and service costs from day 1.
  • Based on the project and workforce characteristics, set up the best way to handle employee related issues. Rotation schedule, payroll settings, contracts, tax residence, social taxes, medical insurance.
  • Participating in client and union discussions.
  • Setting up new routines to ensure compliant payroll, minimum wage, reporting and accounting.
  • Sharing of best practices in the Swedish construction sector.
Three Yellow and Red Tower Cranes Under Clear Blue Sky

  • Full service – Project Sweden is excellent

    We had a new construction project coming up in Sweden that required The Construction Agreement. The deadline was approaching fast and the conditions were difficult at times. We used Neffi’s “Full service” package and felt we had a clear vision from the start.

    Getting all the paperwork in order was not without its problems, but when obstacles arose we were always kept informed and Ott found solutions to get things moving. All the necessary contracts and documents were signed and drawn up on time. Thanks to Ott, we can now carry out our project in peace, knowing our rights, obligations and potential risks.
    Kusti Lilleoks
    CEO of Harmet Modular Building OÜ

Case study 1: Modular wooden house installer to H2GS.

Price: 52 200 SEK

Background

An Estonian wooden modular house producer and installer was hired to install modular buildings in Boden. The project was estimated to last 3 months. The necessary workforce to conduct the project was around 10 workers.

The start of the project was only 1 month after the client contacted me. Therefore, it was necessary to act very quickly. We analysed the project and came to the conclusion that it was necessary to sign the Byggavtalet (Construction Agreement) with Byggnads (Swedish Construction Workers union). However, 1 month was too short of a timeframe to sign that particular agreement.

Luckily the client had an additional active Swedish company with an active collective bargaining agreement called “Bemanningsavtalet” (The Renting agreement) with Almega (Swedish renting companies union). It was decided that the first part of the project would be performed using the Bemanningsavtalet, until the time we would successfully sign the Byggavtalet with the clients main company.

What we planned and what actually happened during the process changed a couple of times, but in the end, the client managed to start the work on time, with all necessary documentation in place.

  • Registration of Swedish F-tax, and employer registration for Estonian company.
  • Map the prerequisites and conditions of the workers. Tax, payroll, work schedule, A1, general contract terms.
  • Create tax application and work contract draft. Set up accounting software.
  • On-going communication with Almega union.
  • Compile collective bargaining agreement application to Byggnads.
  • Participate in agreement signing meeting with Byggnads.
  • Map and divide work responsibitlies between Neffi and client admin staff.
  • Create road-map detailing the next key steps in the project process.

Case study 2: Welding company to Northvolt.

Price: 75 000 SEK

Background

An Estonian welding company was hired to perform steel construction welding works for 1 year in the Northvolt project in Skellefteå. The company would provide 20 welding specialists for the duration of the year. The project type was a subcontract.

Welders is a wide term and there are several collective bargaining agreements that encompass welders. After discussions with the Swedish main contractor and unions, it was determined they would have to sign the Byggavtalet (Construction Agreement) with Byggnads (Swedish Construction Workers union). We also decided it would be best to start a separate Swedish company to accept this project.

When the company was set up, we created several cost models based on worker experience, salary preference, project workload and rotation possibilities. When the client chose a suitable working model, we arranged work contracts, ID06 cards and tax applications around it. By this point we had all the necessary documentation to apply for the Byggavtalet. In 8 weeks we were called to a signing meeting, and managed to successfully sign the agreement and on time.

  • Participation in meeting with Swedish client, to ensure both parties understood the terms equally.
  • Procurement of ready-made Swedish company with necessary registrations (F-tax/VAT/employer).
  • Laying out pay roll processes, taking into account workers net salary expectations, collective agreement minimum levels, cross-border tax regulation and daily allowances.
  • Draft employment contracts & tax applications that comply with Swedish law and workers union regulations.
  • Preparation of application and setting up meeting with Byggnads to sign the Byggavtalet agreement.
  • Registering ID06 worksite personnel ledger account, health insurance agreement, Fora etc.
  • Participation in the agreement signing of the collective agreement on location.
  • Create a roadmap detailing key events for the whole duration of the project on a clear timeline.