The construction, engineering and real estate industries are key economic drivers in Ireland and globally. These sectors face challenges like new regulations, sustainable building practices, climate change and resource scarcity. Companies need a forward-thinking vision to adapt and contribute to societal goals such as sustainable living and climate resilience. At PwC, our comprehensive industry expertise helps companies develop and implement future-ready strategies and robust policies. Our multidisciplinary skill set and global reach provide ample support to help you move boldly into the future, creating lasting value for your business.
Our physical environment is evolving due to the challenges posed by a growing, connected society. The way we live and work is in flux, affecting real estate values and investment returns. The need to respond effectively has never been greater.
Maximising and unlocking value from real assets requires an understanding of the connections between societal demand and the built environment. Flexibility, agility and sustainability are essential in this new environment, making it crucial for organisations to focus on their operations. The ‘passive’ infrastructure and real estate model of the past 25 years is outdated. Greater use of data and technology will be critical. With cash flows no longer guaranteed, market players must closely attend to their customers, society and the environment. Real returns encompass more than just financial gains.
The Carbon Border Adjustment Mechanism (CBAM) is part of the EU’s Fit for 55 plan, aiming to reduce greenhouse gas emissions by 55% by 2030. CBAM imposes a carbon price on high-emission imports to prevent carbon leakage, encouraging businesses to monitor and reduce emissions while ensuring fair competition within and outside the EU. Complementing the EU Emissions Trading System (ETS), CBAM applies to goods like cement, steel and aluminium used in construction and engineering. Implemented in 2023, the first report is due in early 2024, with full financial implications starting in 2026 and phasing in until 2034.
The construction and engineering sectors face significant challenges in decarbonisation and energy transition due to their substantial carbon footprint and resource-intensive nature. Global efforts to combat climate change require compliance with stricter regulations and increasing demands for sustainable practices. This includes reducing greenhouse gas emissions, adopting energy-efficient technologies and using low-carbon materials. Failure to address these challenges could result in financial penalties, reputational damage and reduced competitiveness. Transitioning to a low-carbon economy while maintaining productivity and profitability demands innovation and collaboration.
Tax considerations are crucial at every stage of a deal cycle for businesses in the engineering, real estate and construction sectors. Companies must identify and understand all tax issues related to the asset they are acquiring and incorporate these into their modelling assumptions. These tax issues can vary significantly depending on the target’s profile, whether the transaction is an asset or share deal, and your business plan and financing considerations. Adopting the appropriate structure and complying with all relevant tax obligations throughout the lifecycle is essential.
Sustainability reporting and assurance are increasingly essential as the global landscape shifts towards greater transparency and accountability. These practices are not only crucial for meeting legislative compliance but also play a pivotal role in driving sustainability initiatives. By providing detailed insights into environmental, social and governance (ESG) performance, sustainability reporting helps organisations identify areas for improvement and demonstrate their commitment to sustainable practices. Assurance, on the other hand, adds credibility to these reports, ensuring that the information presented is accurate and reliable.
Balancing profit with the future needs of a fast-changing society.
At PwC, we understand that large-scale projects are rarely straightforward. Our team supports clients through the entire lifecycle of construction and engineering projects or real estate transactions, from inception to completion.
Strategy and planning: our community of solvers provides tailored solutions for clients, the environment and communities. We start with a capital project evaluation to understand stakeholders’ needs, recommending the right investment decisions for optimal infrastructure outcomes. Our services include strategic infrastructure planning, feasibility analysis, business case support, and ESG and portfolio advice.
Commercial structuring and financing: from commercial structuring and financial modelling to identifying funding sources, raising debt and equity, and providing procurement support, our team transforms ideas into real opportunities. Our services include financial model development, debt and equity financing, procurement options analysis, tender process management, and risk management solutions.
Projects in the construction, engineering and real estate sectors are fraught with complexity, uncertainty, and risk. Our integrated approach ensures access to PwC’s full community of solvers with cross-sectoral expertise and a proven track record in project governance and delivery. We provide the structures and assurance needed for successful project management, delivery and operation. Our services include programme and project management, cost and commercial assurance, and project de-risking through each infrastructure lifecycle stage.
An evolving market and new technologies offer opportunities to create new revenues, drive efficiency and reduce costs. We help clients transform through operating models, contract management and technology implementation. Our operations services include operational readiness and performance enhancement, asset management, portfolio analysis and benefits realisation management.
For those looking to value, buy, sell, refinance or restructure, our team offers integrated advice to solve complex transaction challenges and achieve optimal capital outcomes. Our deal advisory services include transaction strategy and structuring, M&A advice, sell-side or buy-side leadership, financial and tax diligence, and evaluation and transaction support.
Assurance goes beyond the legally required audit opinion for annual financial statements. Whether it’s auditing annual or consolidated financial statements or providing special audit services and certifications like CSRD reporting disclosures, an objective opinion by external auditors enhances the reliability of information for all decision-makers. PwC’s construction, engineering and real estate experts bring competency, integrity and extensive industry expertise, backed by many years of audit experience. Leveraging an international network, we ensure that clients’ needs are addressed with both a global perspective and a tailored local approach through comprehensive assurance that supports your decision-making processes.
We leverage our extensive tax expertise to guide you through the deal cycle. Our services include tax due diligence, tax model reviews, tax structuring advice and guidance on key exit considerations. During the holding period, our team provides tax advice on legal agreements, such as management services, leases and development agreements. We also assist with the tax aspects of raising finance, preparing and implementing your ESG strategy, and meeting tax compliance obligations. Our Capital Allowances team, including experienced Chartered Quantity Surveyors, can help you maximise the value of capital expenditure.
For Irish-headquartered construction, engineering, and real estate groups with international operations, transfer pricing (TP) models are crucial. Our TP team helps you structure models to reflect Ireland’s headquarters role, ensuring compliance and tax efficiency across jurisdictions. Construction and engineering activities involving technical uncertainties may qualify for valuable R&D tax credits, while non-compliance with Relevant Contract Tax (RCT) can lead to penalties. Our team ensures compliance and effective working capital management.
Meeting employment tax obligations is also challenging under increased scrutiny and additional reporting. Our team helps you navigate complexities and manage costs. Meanwhile, our ESG Tax services support compliance with the Corporate Sustainability Reporting Directive (CSRD) and EU taxonomy, and help you achieve appropriate tax governance and transparency. We help draft and review CSRD disclosures, create and refine tax strategies, and establish governance protocols to ensure compliance and build trust.
