Sweden: Top 5 significant legislative changes, regulatory developments or trends affecting the construction industry

In Sweden, commercial construction law is not specifically regulated by statute, other than through the Swedish Contracts Act (Sw. Avtalslagen 1915:218), which provides a general framework for contractual relationships. Instead, the parties’ rights and obligations largely depend on the contract agreed for the specific project and on industry standard forms. Developed through negotiations between stakeholders representing both employers and contractors, these standard forms have long been the most frequently used contractual terms in the Swedish construction sector.

In Sweden, commercial building works are generally governed by two main standard form contracts:

• General Conditions of Contract for Building, Civil Engineering, and Installation Works (AB 04). In this standard form contract, the employer is responsible for planning and design, while the contractor is responsible for execution.

• General Conditions of Contract for Design and Construct Contracts for Building, Civil Engineering, and Installation Works (ABT 06). In this standard form contract, the contractor is responsible for both the design and execution of the project.

The latest edition of the build contract AB 04 dates from 2004, and the latest edition of the design-and-build contract ABT 06 dates from 2006. Since 2016, the Construction Contracts Committee (Sw. Byggandets Kontraktskommitté), commonly referred to as BKK, has been working on developing replacement standard form contracts for AB 04 and ABT 06.

In October 2024, BKK published draft versions of AB 25 (the equivalent of AB 04) and ABPU 25 (the equivalent of ABT 06) for public consultation, allowing market participants (including contractors, employers, consultants, trade associations and law firms) to submit written comments. The consultation period ended in February 2025. BKK is now reviewing approximately 4,000 responses from around 200 consultation respondents. As of February 2026, BKK’s assessment is that the new standard form contracts will be published in 2027, but it will revert with an updated position in spring 2026. With 2025 already behind us, AB 25/ABPU 25 are best seen as working titles, the final release is more likely to be branded AB 27/ABPU 27 (or later).

The new standard form contracts are being developed to update the industry’s standard terms to reflect today’s market conditions and to codify relevant case law that has developed in the area. BKK is seeking to ensure that the revised standard form contracts are aligned with contemporary conditions and that they shall:

• promote fair competition, high productivity, innovation, quality, and cost-efficiency;
• promote cooperation, effective communication, and loyalty;
• be consistent with the law of obligations, taking into account the specific characteristics of construction contract law and consultancy law;
• be transparent and predictable;
• be of high quality;
• be user-friendly;
• provide for an optimal allocation of risk; and
• reduce transaction costs.

In addition to the revised chapter structure, one of the main proposed changes is the removal of the established concepts of “Alterations and Additions” (ie variations) and hindrances. Under the draft, these concepts are replaced by a consolidated chapter dealing with changes and deviating circumstances, and the resulting consequences for time and cost. The draft also expressly entitles the Employer, while the contract work is being carried out, to raise objections and require rectification of work that is not in accordance with the contract, a right that was not expressly provided for in AB 04 or ABT 06.

As AB 04 and ABT 06 (and older versions) are not legislation but standard form contracts that apply only if agreed between the parties, the publication of new standard form contracts will not, in itself, affect existing construction contracts. Accordingly, where AB 04 or ABT 06 has been agreed for ongoing work, they will not be automatically replaced by AB 25 or ABPU 25. Nor is there any obligation to adopt the new standard form contracts. Parties remain free to use either the new or the older versions.

Transitions to new standard form contracts are typically phased in over several years. Adoption also depends on related documents being updated. For example, a new edition of the administrative provisions (Sw. Administrativa föreskrifter), which complement the construction contracts and are currently drafted by reference to AB 04 and ABT 06, will be required. In addition, the subcontractor standard form contracts AB-U 07 and ABT-U 07 will need to be updated.

As a result, uptake is expected to be gradual. It is advisable to monitor market practice and major employers’ adoption of the new standard form contracts. In our experience, larger employers are already requesting updated terms aligned with the forthcoming standard forms and are preparing for the changes. However, AB 04 and ABT 06 are likely to remain in use for many years after the new standard form contracts are published.

The National Board of Housing, Building and Planning (Sw. Boverket) has issued new building regulations in the form of binding provisions that clarify the requirements under the Planning and Building Act (Sw. Plan- och bygglagen (2010:900), PBL) and the Planning and Building Ordinance (Sw. Plan- och byggförordningen (2011:338), PBF). These new regulations largely replace Boverket’s Building Regulations (Sw. Boverkets byggregler, BBR) and Boverket’s application of the European construction standards (Sw. Boverkets konstruktionsregler, EKS). The new rules are structured into several separate regulatory frameworks, each covering a different area of requirements. The provisions are legally binding and apply both to the construction of new buildings and to alterations of existing buildings.

The new building regulations entered into force on 1 July 2025, with the exception of provisions on due care in connection with building, demolition, and ground works, which entered into force on 1 January 2025. During the transitional period ending on 1 July 2026, the building proprietor may choose to apply either either: (i) the previous provisions of BBR and EKS; or (ii) the new building regulations. The chosen set of rules must be applied in its entirety.

As before, the new building regulations are primarily based on functional requirements. A key change is that, in most areas, the rules no longer include general guidelines (Sw. allmänna råd) or references to specific standards. In practice, this means that Boverket generally no longer describes how compliance can be achieved, but instead specifies the functions and performance that must be achieved. The revised structure is intended to provide greater scope for technological development and for new solutions, materials, and methods, and to reduce the risk of the sector becoming locked into established ways of working. At the same time, reduced prescriptive guidance has created uncertainty in parts of the industry regarding what is required in practice to demonstrate compliance. This includes uncertainty about the requirement that works be carried out in a workmanlike manner.

With the removal of the general guidelines, the allocation of responsibilities becomes clearer between the authorities that set mandatory requirements and the sector, which remains responsible for meeting those requirements and demonstrating compliance. Industry standards are therefore expected to assume an even more important role as practical guidance to help ensure that construction projects meet applicable requirements.

Although the new building regulations afford industry participants greater latitude to develop new solutions, it is our assessment that established and well-proven methods will, as a general rule, continue to be regarded as meeting the requirement of workmanlike manner-at least until new knowledge and solutions gain broader acceptance in the market and in practice.

The Swedish Work Environment Authority (Sw. Arbetsmiljöverket) has issued new work environment provisions (Sw. arbetsmiljöföreskrifter, each an AFS) that entered into force on 1 January 2025. In connection with this reform, 67 separate AFS were consolidated into 15, improving overall coherence, ease of navigation, and digital accessibility. The provisions most relevant to the construction sector are primarily set out in:

• Design and building work environment coordination – basic obligations (AFS 2023:3); and
• Chapter 5 (Building and civil engineering work) of Risks with certain types of work (AFS 2023:13).

Among other things, the new provisions clarify the roles, responsibilities, and tasks of developers, designers, construction and building work environment coordinators, and manufacturers of prefabricated buildings or structures. The requirements have also been strengthened to ensure that risks are identified and addressed at an earlier stage. The Swedish Work Environment Authority is currently conducting inspections to verify compliance with the new provisions.

In practice, we increasingly see foreign developers and employers entering the Swedish market seeking to transfer work environment responsibility to the contractor as part of their contractual risk allocation. However, an effective transfer generally presupposes that the contractor has independent authority to make decisions on all aspects of the project that may affect the work environment. Since contractors rarely have such autonomy, a complete transfer of work environment responsibility is, in practice, seldom achievable.

The European Parliament has voted on an own-initiative report (2025/2133(INI)) containing recommendations to combat abusive subcontracting and labour intermediation in the European Union.

The report follows tragic workplace incidents, which remain a significant challenge in the EU and are often concentrated in sectors such as construction, and Europol’s warning about infiltration of the European economy by organized crime, with the construction sector being particularly affected. According to the report, long subcontracting chains and abusive labour intermediation can make it harder for authorities to identify fraudulent or criminal actors in the workplace.

The report is intended to inform a future directive. Presented in July 2025, it proposes, among other measures, main contractor liability, registration and licensing of employment agencies, and enhanced supervision (including a benchmark of at least one inspector per 10,000 workers). A proposal to introduce a cap of no more than two tiers of subcontracting in high-risk sectors such as construction was voted down in December 2025 and was therefore not included in the final report debated and voted on by the European Parliament on 12 February 2026. Although no cap on the number of tiers was adopted, the report still proposes measures to address abusive subcontracting practices, including restrictions on contractors’ ability to on-sell contracts without carrying out any work themselves. The European Parliament adopted the report on 12 February 2026; any binding obligations would require subsequent EU legislation.

The Swedish construction sector has been divided on the issue. Trade union representatives have argued that clearer rules would strengthen workers’ rights and improve workplace safety. Employers’ organisations, by contrast, have warned that limiting the number of tiers in subcontracting chains could make it harder for smaller and specialised companies to participate.

In several European countries, including Belgium, Spain, and Norway, statutory rules either limit the number of tiers in subcontracting chains or prohibit contractors from subcontracting the entire scope of a contract.

In Sweden, both private and public developers already impose caps on subcontracting tiers in procurement processes. Whether such requirements are compatible with applicable procurement legislation must be assessed on a case-by-case basis. We recommend monitoring developments at both EU level and in the Swedish market, and staying alert to such requirements in procurement procedures.

Employers considering introducing tier limitations should assess the purpose of the requirement, whether that purpose is likely to be achieved through a tier cap, and the potential practical and commercial consequences of imposing such a limitation, for each project.

The EU’s Energy Performance of Buildings Directive (EPBD) sets energy performance and emissions related requirements for buildings and must be transposed into Swedish legislation no later than 29 May 2026.

The EPBD forms part of the EU’s Fit for 55 package and has the overarching objective of making the EU’s building stock zero-emission by 2050. From 2028, new buildings owned by public bodies must be zero-emission buildings, and from 2030 this requirement will apply to all new buildings.

• A zero-emission building:

• has no on-site emissions from fossil fuels, meaning no boilers, stoves, or furnaces using fossil fuels such as natural gas, oil, or coal;
• requires very little to no energy, due to measures such as effective insulation, sound design, and efficient technical systems; and
• meets its remaining energy needs through clean energy sources, typically from on-site or nearby renewable generation.

In practical terms, the directive will introduce requirements relating to minimum energy performance, life-cycle climate impact, solar energy, and measures supporting sustainable mobility, such as charging infrastructure and bicycle parking. The EPBD also entails stricter rules on energy performance certificates. In addition to affecting new construction, it will impact the existing building stock through requirements to implement energy efficiency improvements.

Within the parameters set by the directive, the EU member states must establish threshold values for the energy use permitted for different categories of zero-emission buildings. These thresholds may differ by building type and may also be adapted for renovated buildings.

The Swedish National Board of Housing, Building and Planning (Sw. Boverket) has an ongoing government mandate concerning the implementation of the EPBD in Sweden. Boverket has prepared nine proposals for new and amended regulations intended to implement the directive, which are being circulated for consultation concurrently. Comments on the proposals may be submitted up to and including 17 April 2026, and we are monitoring the development.