Nordecon in
2023
Nordecon in
2023
Nordecon at a glance
With a history of over 30 years, we are one of the largest and most experienced construction groups in Estonia. Our core business is general contracting. We are a strong partner in a diverse range of segments – we build residential, commercial and public buildings as well as roads, ports and other facilities. We work daily to make public space across Estonia better, safer, more convenient and in every way more attractive.
Our main market is Estonia. However on a smaller scale we are represented also in Finland, Sweden and Ukraine. In connection with the sale of Nordecon Betoon OÜ at the end of 2023, the company exited the Finnish market.
Our people are qualified and competent specialists who prioritise quality and continuous professional growth. We are proud of our experienced team of experts that can offer modern high-quality solutions to any challenges that may arise in the development, design, construction or reconstruction projects.
Nordecon is an innovation leader in construction management in Estonia, using and testing different digital solutions. We are also paying more and more attention to the sustainability of our operations every year.
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Group structure at 31 December 2023, including interests in subsidiaries
Significant changes in group structure during 2023
Merger of Kaurits OÜ with Tariston AS
In 2023 Nordecon AS decided to merge two wholly owned subsidiaries, Tariston AS and Kaurits OÜ. The purpose of merging the two successful infrastructure construction companies with a good long-term track record was to complete the group’s strategic plan to consolidate all infrastructure construction resources, competencies and operations into a single entity.
Sale of the investment in Nordecon Betoon OÜ
At the end of November 2023 Nordecon AS sold its 52% stake in Nordecon Betoon OÜ. With the sale of its investment in Nordecon Betoon OÜ, the Nordecon group has exited the concrete work market, where it competed as a subcontractor, and also withdrew from the Finnish market, where it had been operating through Nordecon Betoon OÜ’s subsidiary NOBE Rakennus OY.
Strategic agenda and goals for 2023-2027
- The group will grow, mostly organically, with a focus on efficient use of resources.
- In Estonia, we will operate in the building and infrastructure construction as well as housing development segments.
- In foreign markets (Sweden and Ukraine), we will compete as a general contractor and a provider of concrete works.
- We will provide our people with a modern and inspiring work environment and a motivation system that fosters collaboration and initiative.
- We will improve our profitability by planning and managing our design and construction operations more precisely.
- We will streamline our work and decision-making processes by implementing modern digital solutions.
- We will maintain the order books of our different operating segments in balance.
- We will set our sustainable development goals and adopt an action plan to achieve them.
- Revenue will grow by at least 5% per year.
- Operating margin for the year will be consistently above 3%.
- Operating profit per employee will increase to at least €10 thousand per year.
- We will deliver a strong dividend yield for Nordecon's shareholders.
Key figures for 2023
278 mln €
(2022: 323 mln EUR)
Revenue
13.8%
(2022: 11.9%)
Revenue change, year on year
€217m
(2022: €150m)
Order book at the year-end
€277m
(2022: €163m)
Value of new contracts signed
125
(2022: 154)
Projects delivered to customers
558
(2022: 658)
Employees
6/0
(2022: 17/0)
Accidents / Fatal injuries at work (incl. subcontractors)
0
(2022: 0)
Environmental pollution, discrimination and corruption incidents
€0.3m
(2022: €0.2m)
Donations to community projects and charities
€278m
(2022: €323m)
Revenue
13.8%
(2022: 11.9%)
Revenue change, year on year
€217m
(2022: €150m)
Order book at the year-end
€163m
(2022: €315m)
Value of new contracts signed
125
(2022: 154)
Projects delivered to customers
558
(2022: 658)
Employees
6/0
(2022: 17/0)
Accidents / Fatal injuries at work (incl. subcontractors)
0
(2022: 0)
Environmental pollution, discrimination and corruption incidents
€0.3m
(2022: €0.2m)
Donations to community projects and charities
Construction market
In 2023, Estonian construction companies output (construction volume) decreased by 6% overall and by 7% in the Estonian market. Building construction decreased by 11%, while infrastructure construction grew by 4% compared with 2022. In building construction, both new build and rehabilitation and reconstruction volumes decreased. Demand for new dwellings fell for the third year in a row. The growth in infrastructure construction was mainly driven by rehabilitation and reconstruction.
Looking back at developments in the construction sector in 2023, we have to admit that it was another unusual year in which construction companies had to navigate a complex and challenging economic landscape. The year 2023 was marked by a decline in investment, increasing competition and a stabilisation of input prices in the construction market.
The slowdown in economic activity and the decline in construction volumes have intensified competition in both building and infrastructure construction. While competition in infrastructure construction has been fierce for a number of years due to the decline in volumes, competition in building construction has also increased significantly over the past year.
Although input prices in the construction industry levelled off in the second half of 2023, this has not increased demand for construction services, as the budgets prepared in earlier periods are no longer sufficient to make the planned investments. Customers are trying to find ways to adjust their previously developed business plans or allocated funds to significantly higher input prices. As a result, pre-construction processes are becoming unusually long: the time between bidding and contract award, even in the case of public procurement, can be several months.
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Our work
In terms of business volumes, the Nordecon group is the largest player in the Estonian construction market. Our engineers have led and are leading the completion of several large-scale and complex projects, which require very precise and systematic planning and management. We see more precise process management as the key to increasing a general contractor's efficiency.
Increasing competition is driving companies to constantly look for efficiencies and savings in their internal processes. Nordecon, as a long-standing champion of digital construction in Estonia, has seen the solution in the application of technology. We want to modernise the construction industry, efficiently assess and manage the progress of our construction projects and avoid recurring errors. In 2023, we were the first in Estonia to implement artificial intelligence-based technology in the construction of a high-rise building, using a platform developed by Buildots, a global technology leader.
Operating segments |
2023 |
2022 |
2021 |
2020 |
2019 |
|---|---|---|---|---|---|
Buildings |
76% |
81% |
75% |
72% |
70% |
Infrastructure |
24% |
19% |
25% |
28% |
30% |
Revenue in the buildings segment decreased by 19% in 2023, mainly affected by the economic environment. In the Buildings segment, the largest contributor is still the public buildings subsegment, with revenue for 2023 roughly at the same level as in 2022. In other subsegments, revenues have contracted significantly.
Largest projects in the public buildings subsegment were the construction of the main building of the Estonian Internal Security Service in Tallinn, the design and construction of storage facilities and utility networks for the Centre for Defence Investment in Harju county, the construction of the building and outdoor premises of the Karlsson kindergarten in Viljandi and the construction of the Viljandi Rescue Station. The extension of the Maarjamõisa Medical Campus of Tartu University Hospital (phase 3) was completed in 2023 after a construction period of almost three years.
The apartment buildings subsegment the largest projects were the design and construction of the Luccaranna and Kastani Kodud housing estates near Tallinn. We also continued with residential property developments in Tartu: development of Mõisavahe Kodu housing estate and the construction of the Emajõe. The group is also proceeding with the design and preconstruction activities for the Seileri Kvartal housing estate in Pärnu.
The largest projects in the commercial buildings subsegment were the construction of the Vektor commercial and residential complex and the Ahtri 4 and Kopli 68A office buildings in Tallinn, the design and construction of the Männiku commercial building in the Kandiküla district of Tartu, and the construction of a biopharmaceutical manufacturing facility for Icosagen AS in the municipality of Kambja.
The largest projects under construction in the industrial and warehouse facilities subsegment were a production facility for E-Piim in Paide, a production and office building for Harju Elekter AS in Hüüru, and a production and office building in Maardu.
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Revenue breakdown in Buildings segment |
2023 |
2022 |
2021 |
2020 |
2019 |
2018 |
|---|---|---|---|---|---|---|
Commercial buildings |
23% |
24% |
29% |
23% |
36% |
|
Public buildings |
37% |
30% |
28% |
37% |
29% |
|
Apartment buildings |
27% |
28% |
29% |
28% |
27% |
|
Industrial and warehouse facilities |
13% |
18% |
14% |
12% |
8% |
The largest revenue contributor in the Infrastructure segment is still road construction and maintenance although in 2023 its revenue decreased by around 17%. During the period, a major share of the subsegment’s revenue resulted from the construction of the Tagadi ecoduct (a wildlife crossing) on the Rail Baltica route, the construction of the Neanurme–Pikknurme 2+1 road section of the Tallinn–Tartu–Võru–Luhamaa road in Jõgeva county and the reconstruction of the Hageri–Kohila road section in Harju county. The group also provides road maintenance services in Järva county.
The amount and share of revenue generated by the other engineering subsegment, which is currently involved in the construction of two wind farms (Tootsi-Sopi and Aidu) in Estonia, increased significantly compared with 2022. The revenue of the environmental engineering subsegment includes revenue from the design and construction of the Erra river and the Kiviõli ditch remediation projects.
Revenue breakdown in the Infrastructure segment |
2023 |
2022 |
2021 |
2020 |
2019 |
|---|---|---|---|---|---|
Road construction and maintenance |
63% |
75% |
87% |
74% |
78% |
Other engineering |
30% |
20% |
6% |
18% |
21% |
Specialist engineering (including hydraulic engineering) |
0% |
5% |
4% |
4% |
1% |
Environmental engineering |
7% |
0% |
3% |
1% |
3% |
Foreign markets
Revenue generated outside Estonia, mostly in Ukraine and Finland, accounted for approximately 3% of the group’s total revenue in 2023. Despite the ongoing war, Nordecon’s construction volumes in Ukraine have increased. In 2023, we completed and delivered construction phases 1 and 2 of a modular kindergarten with a bomb shelter in the city of Ovruch. Work continues on the reconstruction of substations and the installation of their physical protection. Finnish revenues, which mainly include subcontracting revenue from the provision of concrete works, have decreased. Nordecon did not generate any revenue and had no ongoing construction contracts in the Swedish market. The group operates on a project basis in Latvia and Lithuania, but in the period under review Lithuania accounted for less than 1% of the group’s revenue and the group did not earn any revenue in Latvia.
|
|
2023 |
2022 |
2021 |
2020 |
2019 |
|---|---|---|---|---|---|
Estonia |
97% |
96% |
94% |
82% |
89% |
Sweden |
0% |
0% |
0% |
11% |
5% |
Finland |
1% |
2% |
3% |
6% |
4% |
Ukraine |
2% |
0% |
2% |
1% |
2% |
Latvia |
0% |
1% |
1% |
0% |
0% |
Lithuania |
0% |
1% |
0% |
0% |
0% |
Sustainability
Nordecon's corporate social responsibility is underpinned by legal and regulatory compliance: we follow all applicable laws and regulations and maintain honest contractual relationships. We believe that our role as a public company imposes additional requirements that force and motivate us to be one step ahead of industry standards.
In spring 2023, we contributed to the creation of the Green Tiger Construction Roadmap, which was developed by companies and experts. The roadmap sets the target of reducing CO2 emissions from the construction and real estate sectors by 85% by 2040 and provides recommendations on how to achieve this. By developing our ESG strategy and involving our key business partners and suppliers in the process, we are leading the way for other market players.
In setting our sustainability goals and carrying out our sustainability activities, we take into account the stakeholders that are affected by and affect our operations the most. The main stakeholder categories are investors, employees, customers, subcontractors, suppliers, legislators, regulators, local communities, local authorities, schools, professional associations and non-governmental organisations (NGOs).
The group's sustainability focus areas can be divided into three groups:
The most important areas:
- Quality, customer experience and safety of the buildings and infrastructure assets we build
- Financial performance
- Fair business practices - legal and regulatory compliance, transparency and ethics
- Management capabilities and employee development
Very important areas:
- Working with subcontractors and suppliers
- Direct impact of construction activities on local communities
- Innovation, digital construction and technological solutions
- Occupational health and safety
- Employee satisfaction and engagement
- Availability of workforce and new talent
- Environmental impact of delivered buildings and infrastructure assets
Important areas:
- Giving back to society and supporting communities
- Direct environmental impacts of operations
- Diversity and fair treatment
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Sustainability
Nordecon's corporate social responsibility is underpinned by legal and regulatory compliance: we follow all applicable laws and regulations and maintain honest contractual relationships. We believe that our role as a public company imposes additional requirements that force and motivate us to be one step ahead of industry standards.
In spring 2023, we contributed to the creation of the Green Tiger Construction Roadmap, which was developed by companies and experts. The roadmap sets the target of reducing CO2 emissions from the construction and real estate sectors by 85% by 2040 and provides recommendations on how to achieve this. By developing our ESG strategy and involving our key business partners and suppliers in the process, we are leading the way for other market players.
In setting our sustainability goals and carrying out our sustainability activities, we take into account the stakeholders that are affected by and affect our operations the most. The main stakeholder categories are investors, employees, customers, subcontractors, suppliers, legislators, regulators, local communities, local authorities, schools, professional associations and non-governmental organisations (NGOs).
The group's sustainability focus areas can be divided into three groups:
The most important areas:
- Quality, customer experience and safety of the buildings and infrastructure assets we build
- Financial performance
- Fair business practices - legal and regulatory compliance, transparency and ethics
- Management capabilities and employee development
Very important areas:
- Working with subcontractors and suppliers
- Direct impact of construction activities on local communities
- Innovation, digital construction and technological solutions
- Occupational health and safety
- Employee satisfaction and engagement
- Availability of workforce and new talent
- Environmental impact of delivered buildings and infrastructure assets
Important areas:
- Giving back to society and supporting communities
- Direct environmental impacts of operations
- Diversity and fair treatment
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Quality
The main quality metrics of our work are properly managed projects and buildings and infrastructure assets which have been delivered on time and meet the required quality standards. Nordecon’s customer is satisfied when we deliver high construction quality, act transparently and communicate openly. Our work is underpinned by conscious, systematic and uncompromising quality management.
Nordecon has a quality management system that complies with ISO 9001, an environmental management system that complies with ISO 14001 and an occupational safety management system that complies with ISO 45001. Compliance with the standards has been certified by DNV.
Examples from 2023
- Despite the environment, our companies managed to maintain a very high level of customer satisfaction: 89% on average across the group.
- The parent company and the subsidiary Embach Ehitus carried out major construction work on phase 3 of the Maarjamõisa Medical Campus of Tartu University Hospital in 2023. A special feature of the project was the need to manage the construction work next to hospital buildings that provide daily medical services. This required a high level of attention and careful preparation by the team from both companies to anticipate and avoid potential risks.
- The obligation to electronically register workers on construction sites took effect on 1 October 2023. The aim is to increase transparency regarding the persons present on a construction site and to help detect potential tax fraud. The group has worked closely with the Tax and Customs Board to be able and ready to implement the new requirements on time, despite initial technical issues with the system.
- Increased focus on ensuring the quality of the warranty claim process. In 2023, all our major building construction companies implemented the Hausing warranty task management platform. The key value of the Hausing platform is a seamless customer journey that allows all warranty work and improvement proposals to be made and tracked using a single information system.
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The compliance of the management system designed and implemented by Nordecon with the requirements of quality management standard ISO 9001, environmental management standard ISO 14001 and occupational health and safety management standard ISO 45001 is verified by the certificates issued by DNV.
It was a big and challenging job for all of us. Because a modern, high-tech hospital building is a more complex object than the average anyway, and when it is a children's hospital, the responsibility is even greater. The contractor's task was not 'just' to build, but to do everything in such a way that the work of the active care hospital in the immediate vicinity would not be affected - the new building was built next to the existing hospital buildings, where the clinic's normal treatment work took place both day and night. The contractor handled this very well (despite the war and the plague in the background) and the client clearly felt that we were all in this together. And rightly so!
Toomas Kivastik
Tartu University Hospital
Viljandi City Government is very satisfied with Embach Ehitus OÜ's performance and the organisation of the work on the Karlsson kindergarten construction. The smoothness of the construction works and the communication between all parties involved has been professional and all questions were answered/solved quickly. None of the situations that needed to be resolved caused any major disputes between the client and the site team, but were professionally resolved, as the team was united in the common goal of creating a cosy and modern environment for the children of the city of Viljandi to spend their days in. Every client wants to work with a team like Embach Ehitus OÜ's team, because the client can be sure that the result will be of high quality and meet all requirements. As a client, we are pleased that Embach Ehitus OÜ has been able to assemble a professional team that we can rely on and that supports the company's positive image in the development and construction industry. Good luck in the development of the company and cheerfulness to the site teams in the execution of the works. Quality buildings for you!
Indrek Henk
Riigi Kinnisvara AS
Opened by Estonia in June 2023 in Ovrush, the modular kindergarten with a modern bomb shelter and outdoor area was the first wartime reconstruction project in Ukraine. Construction in difficult conditions and a very fast construction schedule required full commitment and cooperation from all parties involved. Many thanks to the team at Nordecon and its Ukrainian subsidiary Eurocon for having the courage to take on the challenge, staying within budget and completing the project on time. The result is excellent and will serve as a model for the planning of new kindergartens.
Tarmo Needo
The Estonian Centre for International Development
It was a big and challenging job for all of us. Because a modern, high-tech hospital building is a more complex object than the average anyway, and when it is a children's hospital, the responsibility is even greater. The contractor's task was not 'just' to build, but to do everything in such a way that the work of the active care hospital in the immediate vicinity would not be affected - the new building was built next to the existing hospital buildings, where the clinic's normal treatment work took place both day and night. The contractor handled this very well (despite the war and the plague in the background) and the client clearly felt that we were all in this together. And rightly so!
Toomas Kivastik
Tartu University Hospital
Viljandi City Government is very satisfied with Embach Ehitus OÜ's performance and the organisation of the work on the Karlsson kindergarten construction. The smoothness of the construction works and the communication between all parties involved has been professional and all questions were answered/solved quickly. None of the situations that needed to be resolved caused any major disputes between the client and the site team, but were professionally resolved, as the team was united in the common goal of creating a cosy and modern environment for the children of the city of Viljandi to spend their days in. Every client wants to work with a team like Embach Ehitus OÜ's team, because the client can be sure that the result will be of high quality and meet all requirements. As a client, we are pleased that Embach Ehitus OÜ has been able to assemble a professional team that we can rely on and that supports the company's positive image in the development and construction industry. Good luck in the development of the company and cheerfulness to the site teams in the execution of the works. Quality buildings for you!
Indrek Henk
Riigi Kinnisvara AS
Opened by Estonia in June 2023 in Ovrush, the modular kindergarten with a modern bomb shelter and outdoor area was the first wartime reconstruction project in Ukraine. Construction in difficult conditions and a very fast construction schedule required full commitment and cooperation from all parties involved. Many thanks to the team at Nordecon and its Ukrainian subsidiary Eurocon for having the courage to take on the challenge, staying within budget and completing the project on time. The result is excellent and will serve as a model for the planning of new kindergartens.
Tarmo Needo
The Estonian Centre for International Development
Safety
Ensuring the security of our construction sites and creating a safe and ergonomic work environment so as to prevent accidents and occupational diseases is one of our priorities.
We provide our staff with regular training and information in these matters. Action plans are prepared for all construction sites, employees are supplied with appropriate work and personal protection equipment, and all safety incidents are analysed to prevent their recurrence. To ensure proper and safe work arrangement, we regularly inspect our construction sites. We support activities that contribute to employees’ mental and physical health.
Examples from the year 2023
- In 2023, the group’s subsidiary Nordecon Betoon implemented the VITS occupational health and safety management software to make the process of initial safety and work environment training easier and more effective. With VITS, initial training can be carried out online. The company also uses VITS to train new employees and to instruct subcontractors on construction sites.
- As a major player in the local construction market, the group is aware of its greater responsibility to address safety issues in the industry. In 2023, the parent company introduced a playful ‘safety fleece’ format on its social media channels to draw attention to the importance of safety issues, share knowledge and good practices, and promote the group’s values and principles for safety at work.
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2023
|
Subcontractors’ workforce |
2022
|
Subcontractors’ workforce |
|
|---|---|---|---|---|
Work-related safety incidents |
13 |
11 |
6 |
11 |
Minor accidents at work |
2 |
2 |
5 |
5 |
Serious accidents at work |
0 |
2 |
1 |
6 |
Fatal accidents at work |
0 |
0 |
0 |
0 |
Environmental impacts
We strive to avoid risks and negative environmental impacts, to keep the surrounding environment clean, and to disturb the community where we carry out our construction activities as little as possible. We notify communities of planned works in advance, communicate regularly with the local authorities, and organise meetings to engage the communities to prevent possible problems.
The most significant environmental aspects of our operations are related to the consumption of materials, generation of waste, possible pollution, impacts on wildlife and vegetation, and emissions to air. We prepare an environmental plan for each construction site and regularly check and update its implementation. We have started screening waste handlers to recycle more waste. An informed and environmentally sustainable approach also helps save costs.
There is a clear trend towards more sustainable buildings and facilities. This is mainly attributable to the EU energy efficiency measures as well as the growing importance of green thinking and customers’ desire to reduce their property maintenance costs. Our role is to make sure that our team can implement more sustainable solutions and advise customers that wish to find more sustainable options.
Examples from 2023
- In 2023, the group delivered 36 buildings that meet higher than usual environmental standards. These include, for example, phase 3 of the Medical Campus of Tartu University Hospital, where the new buildings have energy class A, and the new dairy complex of E-Piim, which has energy class B.
- Due to the market situation and the expected changes by the Transport Administration in the principles for participation in public tenders, the group’s subsidiary Tariston decided to invest €400 thousand in additional equipment for the Amomatic 240 SM plant in 2023. The investment will allow the cost price of the asphalt concrete mix to be reduced by around 10%, which will create a competitive advantage on the asphalt concrete sales market and for successful participation in the tenders organised by the Transport Administration. As an additional added value, the investment will allow reducing the environmental footprint of asphalt production by 27%.
- Our companies’ portfolios include many examples of successful material recycling. For example, our subsidiary Nordecon Betoon used excavated limestone to build the grounds and backfill at the site of the Ülemiste City Education Centre and timber from previous housing development projects to build temporary stairs and fences during the construction of the Uus-Järveküla housing estate.
- Construction management at the Rail Baltica construction sites is subject to stricter than usual environmental requirements, which also had to be met at the Tagadi ecoduct site by our subsidiary Tariston. The contractor is required to comply with a significantly greater number of specific conditions on the site than usual to protect wildlife and avoid possible violations.
- Our companies are constantly improving their ability to offer customers environmentally friendly solutions where the technical design of the building allows it. For example, our subsidiary Embach Ehitus implemented several special solutions in the construction of the Pirni 7 office building: activated pile foundations for heating and cooling, rainwater recycling, a solar power system to reduce energy consumption, intelligent lighting control to reduce energy consumption and ensure a high-quality working environment, and an intelligent access system integrated into door handles.
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Giving back to society
Nordecon makes a direct social impact through well-planned, high-quality and safe buildings and facilities. The group is also committed to supporting progress in the field of construction and engineering and the development of young people.
We participate actively in the discussion of topics related to the construction industry at professional associations, universities, and professional qualification authorities. Nordecon is working with Tallinn University of Technology to create better opportunities civil engineering students by supporting academic and research activities and offering internships and scholarships.
We make proposals for improving the procurement terms and conditions as well as the standards relevant to the construction industry, participate in collaboration projects, and communicate with various stakeholder groups. We promote engineering education to help young people find their way to construction-related professions and thus ensure the availability of future engineers.
Examples from 2023
- We offered paid internships to students at all group companies and organised special events for construction and engineering students and interns to introduce the group and its activities (open days, site visits, lectures). Several students who completed their internships decided to join the Nordecon team, and the group supports them by offering flexible working hours and part-time work. The group has a good reputation among engineering students, which is reflected in the fact that the parent company was once again one of the top ten most attractive employers for engineering students according to a survey conducted by Instar, ranking third in 2023.
- The parent has a five-year agreement with Tallinn University of Technology to cooperate in the education and training of civil engineers in Estonia. In 2023, Tallinn University of Technology acquired a new high-performance testing facility that allows tests to be carried out on the components and joints of building structures.
- The subsidiary Embach Ehitus continued to work with the Estonian Association of Civil Engineers to promote the engineering profession, contributing both financially and through lectures at various Estonian schools.
- For the second consecutive year, the parent company participated as a founder in the implementation of the education programme ‘Lae end’ (Charge Yourself) that is aimed at empowering secondary school physics teachers. The programme received the Friend of Education of the Year 2023 award from both the Ministry of Education and Research and the City of Tallinn, as well as an international communication award.
- Nordecon awarded two engineering scholarships and a Heinrich Laul PhD scholarship for a young lecturer/researcher under the scholarship programme of the Development Fund of Tallinn University of Technology. The group’s subsidiary Tariston contributed to the Peep Sürje Scholarship Fund.
Digital construction
Digital construction, i.e. the use of various digitalisation solutions, is a natural part of Nordecon’s everyday operations. The purpose is to make work more efficient, transparent, and systematic in order to improve the analysis of activities and make smarter decisions. Our ambition is to be a digital construction leader and advocate and to contribute to making the use of practical digital solutions a standard. Digital construction helps modernise the construction industry and makes its image more attractive to young people choosing a profession. We are an active member of the board of the Digital Construction Cluster to contribute to the development of digital construction in Estonia.
Examples from 2023
- In recent years, we have moved to the next level in the implementation of BIM: it is now part of management planning. The parent company applied the methodology to the construction of a new school building in Saku, which started at the beginning of summer 2023.
- The construction of the Tagadi ecoduct (a wildlife crossing) by our subsidiary Tariston provided the first opportunity to implement Rail Baltica’s enhanced BIM requirements. The site team recorded all work in a model, which was also used to sign delivery and acceptance certificates with both subcontractors and the customer.
- The parent company applied AI-based technology to the construction of the Vektor high-rise. Using a platform developed by Buildots, a leading global technology provider, the construction team systematically captured 360-degree images of the entire construction process of the building to assess and manage progress. The platform enables accurate and seamless assessment of construction progress, as well as instant and rapid comparison of data with BIM models and site schedules. The six-month pilot project, carried out as part of Tehnopol’s AI development programme, was named Innovation Project of the Year 2023 by the Digital Construction Cluster.
- To complement the data-driven tools supporting construction management, the parent company developed a dashboard for its sales and pre-construction divisions.
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Digital construction
Digital construction, i.e. the use of various digitalisation solutions, is a natural part of Nordecon’s everyday operations. The purpose is to make work more efficient, transparent, and systematic in order to improve the analysis of activities and make smarter decisions. Our ambition is to be a digital construction leader and advocate and to contribute to making the use of practical digital solutions a standard. Digital construction helps modernise the construction industry and makes its image more attractive to young people choosing a profession. We are an active member of the board of the Digital Construction Cluster to contribute to the development of digital construction in Estonia.
Examples from 2023
- In recent years, we have moved to the next level in the implementation of BIM: it is now part of management planning. The parent company applied the methodology to the construction of a new school building in Saku, which started at the beginning of summer 2023.
- The construction of the Tagadi ecoduct (a wildlife crossing) by our subsidiary Tariston provided the first opportunity to implement Rail Baltica’s enhanced BIM requirements. The site team recorded all work in a model, which was also used to sign delivery and acceptance certificates with both subcontractors and the customer.
- The parent company applied AI-based technology to the construction of the Vektor high-rise. Using a platform developed by Buildots, a leading global technology provider, the construction team systematically captured 360-degree images of the entire construction process of the building to assess and manage progress. The platform enables accurate and seamless assessment of construction progress, as well as instant and rapid comparison of data with BIM models and site schedules. The six-month pilot project, carried out as part of Tehnopol’s AI development programme, was named Innovation Project of the Year 2023 by the Digital Construction Cluster.
- To complement the data-driven tools supporting construction management, the parent company developed a dashboard for its sales and pre-construction divisions.
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Our people
Competent and highly motivated people play a key role in Nordecon’s success. We provide our employees with a modern and professional work environment and support their personal development. The group undertakes large-scale and complex projects that offer our people new and inspiring challenges. We employ people of different ages, genders, and ethnicities as well as people with special needs. We treat everyone equally. We retain our employees through engagement, internal recognition, arrangement of team activities, and open communication.
The group employed 558 employees in 2023. Men accounted for 83% and women for 17% of the workforce. Their average length of employment with the group was 9.0 years.
Nordecon takes a strategic approach to employer reputation and invests in promoting the construction business and related professions. We pay particular attention to young people and annually organise events designed to attract and develop new talent. The group had 19 interns during the year.
Examples from 2023
- A group-wide satisfaction survey was conducted in autumn 2023. Employee engagement was at an all-time high. In 2023, we asked for the first time about levels of work-related stress and stress factors. Respondents rated their level of stress at work as average.
- In 2023, the parent company launched a comprehensive long-term management development programme. The first step was to work with management to identify the management skills and competencies required for different positions. The trainers are leading professionals in their field.
- The Nordecon group pays increasing attention to supporting the health and wellbeing of its employees. The parent company organises a Health Month twice a year during which employees are encouraged to take part in exercise challenges, attend health lectures and eat healthy. The lectures are open to employees from all group companies. The aim is to highlight and raise awareness of mental health issues on an ongoing basis. Some of our employees have been trained in mental health first aid (trainer: peaasi.ee) and our long-term goal is to increase the percentage of such employees.
- In 2023, our subsidiary Nordecon Betoon launched a diverse lecture series focused on employee development and education in areas outside of construction. Regular meetings are held with leading experts and professionals from various fields (e.g. financial literacy, healthy eating, stress management, brain training, etc.).
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Awards and public recognition
Young Civil Engineer of the Year 2023. Jürgen Jõgeva, a project manager at Nordecon AS, was named Young Civil Engineer of the Year 2023 by the Estonian Association of Civil Engineers for his work as a construction site manager in phase 3 of the Medical Campus of Tartu University Hospital.
Innovation Project of the Year 2023. A pilot project of Nordecon AS, which involved using artificial intelligence to assess the progress of works in the construction of the Vektor high-rise, won the Innovation Project of the Year 2023 award in a competition organised by the Digital Construction Cluster.
Finalists of professional competitions: Ain Rebane, a project manager at Embach Ehitus OÜ, and Rauno Rausk, a project manager at Nordecon AS, were among the finalists of the Builder of the Year 2023 competition organised by the Estonian Association of Construction Entrepreneurs for their outstanding work in phase 3 of the Medical Campus of Tartu University Hospital.
Finalists of professional competitions: Rauno Rausk, a project manager at Nordecon AS, was among the finalists of the Civil Engineer of the Year 2023 competition organised by the Estonian Association of Civil Engineers for his outstanding work in phase 3 of the Medical Campus of Tartu University Hospital.
Finalists of professional competitions: The Alma Tomingas House, a green building in Ülemiste City built by the consortium of Nordecon AS and Nordecon Betoon OÜ, was among the finalists in the ‘Buildings’ category at the Construction Project of the Year 2023 competition organised by the Estonian Association of Architectural and Consulting Engineering Companies.
Finalists of professional competitions: The outdoor area around Terminal D in Tallinn Old City Harbour, an infrastructure project carried out by Nordecon AS, was among the finalists for the ‘Infrastructure’ category in the Construction Project of the Year 2023 competition organised by the Estonian Association of Architectural and Consulting Engineering Companies.
Best Company in Tartu of the Year 2023. Embach Ehitus OÜ won the Fastest Growing Small Undertaking award at the Best Company in Tartu of the Year 2023 competition.
Silver Badge of the Ministry of Defence. Peep Rebina a project manager, and Ülo Stallmeister, a construction site manager, at Nordecon AS were awarded the Silver Badge of the Estonian Ministry of Defence for their long-term contribution to the construction of national defence infrastructure.
Builder of the Year 2022. Nordecon AS received the Builder of the Year 2022 award from the Estonian Centre for Defence Investment.
Innovation Partner of the Year 2022. Tariston AS received the Innovation Partner of the Year 2022 award from the Estonian Centre for Defence Investment.
Best Heartfelt Deed. The Children’s Clinic building of Tartu University Hospital was recognised as one of the Best Heartfelt Deeds among projects carried out with EU support in a competition organised by the State Shared Service Centre. The Children’s Hospital was built by Nordecon AS and Embach Ehitus OÜ as part of phase 3 of the Medical Campus of Tartu University Hospital.
Attractive Employer of the Year 2023. Nordecon AS was ranked in the TOP 3 by engineering students in Instar’s employer reputation survey.
Friend of Education of the Year 2023. Nordecon AS, as one of the founders of the education programme ‘Lae end’ (Charge Yourself), which is aimed at promoting science, received the Friend of Education of the Year 2023 award from both the Estonian Ministry of Education and Research and the City of Tallinn.
Young Civil Engineer of the Year 2023. Jürgen Jõgeva, a project manager at Nordecon AS, was named Young Civil Engineer of the Year 2023 by the Estonian Association of Civil Engineers for his work as a construction site manager in phase 3 of the Medical Campus of Tartu University Hospital.
Innovation Project of the Year 2023. A pilot project of Nordecon AS, which involved using artificial intelligence to assess the progress of works in the construction of the Vektor high-rise, won the Innovation Project of the Year 2023 award in a competition organised by the Digital Construction Cluster.
Finalists of professional competitions: Ain Rebane, a project manager at Embach Ehitus OÜ, and Rauno Rausk, a project manager at Nordecon AS, were among the finalists of the Builder of the Year 2023 competition organised by the Estonian Association of Construction Entrepreneurs for their outstanding work in phase 3 of the Medical Campus of Tartu University Hospital.
Finalists of professional competitions: Rauno Rausk, a project manager at Nordecon AS, was among the finalists of the Civil Engineer of the Year 2023 competition organised by the Estonian Association of Civil Engineers for his outstanding work in phase 3 of the Medical Campus of Tartu University Hospital.
Finalists of professional competitions: The Alma Tomingas House, a green building in Ülemiste City built by the consortium of Nordecon AS and Nordecon Betoon OÜ, was among the finalists in the ‘Buildings’ category at the Construction Project of the Year 2023 competition organised by the Estonian Association of Architectural and Consulting Engineering Companies.
Finalists of professional competitions: The outdoor area around Terminal D in Tallinn Old City Harbour, an infrastructure project carried out by Nordecon AS, was among the finalists for the ‘Infrastructure’ category in the Construction Project of the Year 2023 competition organised by the Estonian Association of Architectural and Consulting Engineering Companies.
Best Company in Tartu of the Year 2023. Embach Ehitus OÜ won the Fastest Growing Small Undertaking award at the Best Company in Tartu of the Year 2023 competition.
Silver Badge of the Ministry of Defence. Peep Rebina a project manager, and Ülo Stallmeister, a construction site manager, at Nordecon AS were awarded the Silver Badge of the Estonian Ministry of Defence for their long-term contribution to the construction of national defence infrastructure.
Builder of the Year 2022. Nordecon AS received the Builder of the Year 2022 award from the Estonian Centre for Defence Investment.
Innovation Partner of the Year 2022. Tariston AS received the Innovation Partner of the Year 2022 award from the Estonian Centre for Defence Investment.
Best Heartfelt Deed. The Children’s Clinic building of Tartu University Hospital was recognised as one of the Best Heartfelt Deeds among projects carried out with EU support in a competition organised by the State Shared Service Centre. The Children’s Hospital was built by Nordecon AS and Embach Ehitus OÜ as part of phase 3 of the Medical Campus of Tartu University Hospital.
Attractive Employer of the Year 2023. Nordecon AS was ranked in the TOP 3 by engineering students in Instar’s employer reputation survey.
Friend of Education of the Year 2023. Nordecon AS, as one of the founders of the education programme ‘Lae end’ (Charge Yourself), which is aimed at promoting science, received the Friend of Education of the Year 2023 award from both the Estonian Ministry of Education and Research and the City of Tallinn.
