NATIONAL REPORT ON GREEK LEGISLATION REGARDING THE CONDITIONS UNDER WHICH FOREIGN ENGINEERS AND ARCHITECTS MAY EXERCISE THEIR PROFESSION IN GREECE, THE CONDITIONS TO PARTICIPATE TO CALLS FOR BIDS REGARDING THE CONSTRUCTION OF PUBLIC WORKS, TO PARTICIPATE IN JOINT VENTURES IN VIEW OF THE CONSTRUCTION OF PUBLIC WORKS AND THE MAIN TERMS AND CONDITIONS WHICH ARE USUALLY INCLUDED IN CONSULTANCY AGREEMENTS REGARDING THE CONSTRUCTION OF A WORK, EITHER PRIVATE OR PUBLIC.

I. The conditions under which foreign engineers and architects may EXERCISE THEIR PROFESSION in Greece.

INTRODUCTION      

Inasmuch as,    based on article 3 (c) of the Treaty of Rome regarding the formation of the European Economic Community, the abolishment of the impediments regarding the free circulation of persons and services between State Members constitutes one of the aims of the Community, which means that citizens of State Members must be allowed to exercise their professional activities as free lancers or as employees in a State Member other than the one where they acquired there professional qualifications, the Council of the European Economic Community has promulgated Directive number 89/48/EEC dated December 21, 1988 regarding a general system of recognition of diplomas of third grade education evidencing a professional education of a minimum duration of three (3) years.

The above Directive was modified later on by means of Directive number 92/51/EEC of the EEC Council and further by Directive number 2001/19/EEC (L.206/31.7.2001) of the European Parliament and the EEC Council.

To put its Legislation in compliance with the general system of recognition of diplomas between the State Members, which is  set forth by the above Directives, Greece has promulgated Presidential Decree number 165/2000, which was later on modified by means of Presidential Decree number 385/31.12.2002.

Article 3 of PD 165/2000 provides that its dispositions apply to greek citizens and to citizens of the other State Members of the European Union wishing to exercise in Greece, as free lancers or as employees, a profession regulated by Law.

A profession is considered to be regulated by Law when specific prerequisites are provided in a mandatory way by the Law in order for said profession to be exercised.

In general, such prerequisites are education prerequisites, possibly experience prerequisites and also, most often, the obtaining of a permit or of a licence.

To make clear the above, let us give an example of a non regulated and of a regulated profession : a trader wishing to establish a commercial enterprise has to fulfill administrative formalities, such as the obtaining of a permit to open a shop, the matriculation of its undertaking with the Fiscal Authorities and the Social Security Fund etc.., but the trader himself and his employees and staff in general must not have any education degrees specifically connected to the trade in general or to the specific object(s), which they commercialize. On the contrary, a doctor, an engineer, an architect, a lawyer must have the education degrees provided by the Law, they may be requested to make a training during a period of time fixed by the Law (for instance, this is mandatory for lawyers) and, thereafter, they may be requested to present exams or make a test in order to get the permit needed for them to exercise their profession etc….

In Greece, the profession of engineer and the profession of architect are regulated by Law in the above sense.

Article 4 of PD 165/2000 provides that the access to a profession, which is regulated by Law or its exercise in Greece, assumes that the concerned person is holder of a diploma as defined below.

According to article 3 of the above mentioned Presidential Decree, do not fall in the field of its application the professions which are governed by dispositions promulgated based on specific Directives of the European Union, which establish reciprocal recognition of diplomas between State Members, as well as the professions which are governed by dispositions already in force based on the above mentioned Directive 89/48/EEC, i.e. legal dispositions  promulgated before the P.D. 165/2000 was put into force.

Based on the above Directive 89/48/EEC, specific Laws or Presidential Decrees have been promulgated in Greece governing various regulated professions and most probably other Laws or Presidential Decrees will be  promulgated and put in force in Greece in the future, regarding regulated professions for which specific legal texts have not yet been promulgated. As long as there is not a specific Law or Presidential Decree applying to a specific regulated profession, same will be governed by the dispositions of P.D. 165/2000.

Consequently, both the above EEC Directive and the above Presidential Decree constitute the general legal frame of the rules governing the exercise in Greece of a regulated profession, by persons having acquired their diplomas in another State Member of the EU.

Regarding the profession of architect, Presidential Decree number 53/2004 - which was promulgated in order to adapt Greek Legislation to the dispositions of the Directive of the EEC Council number 85/384/EEC regarding the reciprocal recognition of diplomas, certificates and other titles in the sector of the Architectural Science and regarding the facilitation of the actual exercise of the right of establishment and of the granting of services, as said Directive has been modified and completed later on - sets forth the conditions under which a greek citizen or a citizen of another State Member of the EU, who has obtained his diploma in a State Member of the EU other than Greec may exercise in Greece the profession of architect. Consequently, the profession of architect is regulated by a specific legal text which is P.D. 53/2004 and not by P.D. 165/2000.

Inasmuch as up to now there is no specific Law setting forth the conditions and the procedures needed for engineers, either greek citizens or citizens of another State Member of the EU, who have got their diplomas in another State Member of the EU, the obtaining by them of the authorization to exercise their profession in Greece is governed by the dispositions of Presidential Decree 165/2000.

Herebelow, we shall analyze the dispositions needed for engineers and for architects to exercise their profession in Greece.

A.     ENGINEERS

1.  GENERAL RULES

To be authorized to exercise his profession in Greece, an engineer, who is either a greek citizen or a citizen of another State Member of the European Union and who has obtained his diploma in another State Member of the European Union, must apply for recognition of his professional qualifications to a Special Committee located at the Ministry of National Education, which is provided by article 10 of P.D. 165/2000, as per what is exposed more in detail below.

According to article 4 of the above P.D., the Committee in question cannot refuse the access to the profession for reasons of lack of qualifications in case : (a) the concerned person is holder of a diploma provided in article 2 of the P.D., which was obtained in another State Member and which is required for the exercise of the profession in said State Member or (b) the candidate has exercised the profession full time during two (2) years within the past ten (10) years in another State Member of the EU, where said profession is not regulated by Law, provided he has obtained one or more titles of studies which must (i) have been granted by a competent authority of a State Member, (ii) certify that the holder has followed studies of three (3) years at least after his second degree education and (iii) prepare the applicant for the practice of the profession in question. The two (2) years of professional experience are not mandatory when the title(s) of the applicant certify an education which is regulated by Law.

Is considered as an education regulated by Law the education which is oriented to the exercise of a specific profession and includes studies of at least three (3) years after the education of second degree and, depending on the case, professional education, professional practical exercise or professional practical experience needed to complete the cycle of studies after the second degree.  

According to article 2 of P.D. 165/2000 as it is in force today after its modifications, is considered as a diploma any title or certificate having been granted by the competent Authority of a State Member of the European Union either to a greek citizen or to a citizen of another State Member of the EU, out of which it accrues that : (a) the holder of the diploma has achieved successfully universitary studies of a duration of at least three (3) years or of an equivalent duration in case of partial frequentation of an University and (b) the holder of the diploma has the required professional qualifications in order to exercise a profession regulated by Law in other State(s) Member(s) of the EU.

The education certified by means of the diploma must have been obtained mainly within the European Community, otherwise the diploma must have been recognized by a State Member of the European Union and, in addition, the concerned person must have a professional experience of three (3) years at least certified by the State Member of the EU, which has recognized his diploma.

A certificate or any other title having been granted by a competent Authority of a State Member of the EU is also considered as a diploma, provided it certifies education achieved within the European Union and provided also that the Authority having granted it recognizes it as being of a level equivalent to the level of a diploma of universitary studies of a duration of at least three (3) years. Additionally, in order to be considered as a diploma in the above sense, such a certificate or other title must grant to its holder the right to access and exercise of the profession in the State Member where it has been issued.

The concerned candidate may exercise the profession of engineer in Greece after his relevant right has been recognized by virtue of a decision of the above mentioned Committee of Recognition of Professional Equivalence of Titles of Third Degree Education provided for by article 10 of P.D. 165/2000.

The Committee in question must issue its decision within four (4) months as of the day on which the file accompanying the application of the candidate is completed by means of additional data information, either spontaneously or at the request of the Committee.

2. THE PROCEDURE

a. The applicant (candidate), who wishes to exercise in Greece the profession of engineer, must:

i. be holder of a diploma awarded by a recognized Higher Education Institution of a State Member of the European Union, after at least three (3) years of studies in said State.

Diploma means any diploma, certificate or other evidence of formal qualification or any set of such diplomas, certificates or other evidences of formal qualification:

- which has been awarded by a competent Authority of a State Member of the EU designated in accordance with its standing Laws, regulations or administrative provisions.

- which shows that the holder has successfully completed a course of at least three (3) years duration at a University or an Institution of Higher Education and      

- which shows that the holder has the professional qualifications required for the taking up or pursuit of a regulated profession in the State Member in question (licence of practice of the profession).

ii. be fully qualified to practice the profession of engineer in the State of origin. This means that, apart from the three (3) years studies, the applicant must have obtained a licence of professional practice or must have already completed the procedure needed in the State of origin in order to become a fully qualified professional.

b. The procedure for the recognition of the professional qualification of the candidate comprises the following steps :

  i. the submission by the concerned person of an application and of all the required documents, to the Section of Recognition of Professional Qualifications of  the Ministry of Education.

  ii. the examination of the applicant’s documents by the Committee of Recognition of Professional Equivalence of Higher Education Degrees, after completion of the applicant’s file.

  iii. the issue of an ‘’act of recognition of professional qualification’’ regarding the applicant or an act of imposition of compensatory measures (aptitude test or adaptation practice) on the applicant or an act of rejection of the application. 

It appears from the above that the Committee of Recognition of Professional Equivalence of Higher Education Degrees may either accept the application and recognize the professional qualifications of the applicant or reject the application, but that, besides these two options the Council may ask the applicant either (a) to prove that he has professional experience (in case his education has lasted for one (1) year or more less than the education required in Greece for the same profession) or (b) to make in Greece an adaptation practice (for three (3) years maximum) or to submit himself to an aptitude test. The applicant is allowed to choose between the adaptation practice and the aptitude test.

In principle, proof of additional professional experience may be required if the professional education and training of the applicant was one (1) year or more shorter than the one required in in Greece, The applicant may be required to complete an adaptation period or to make an aptitude test if there are significant differences between the contents of his training and those of the training required in Greece or in case there are significant differences between the range of activities covered by the profession in the home State and the range of activities covered by the profession in Greece.

The aptitude test or the adaptation practice are done by the relevant Professional Organization if it is a legal entity governed by Public Law. Otherwise, they are done by a Public Authority which is competent to issue the relevant permit for the exercise of the profession or the corresponding title, based on the decision of the above Committee.

The valuation of the adaptation practice is done by the same Authorities as above and its results are communicated to the Committee in order for it to issue its final decision. As of the issue of the decision of the Committee recognizing the professional qualifications of the applicant, the applicant is entitled to exercise his profession according to the dispositions of the standing Greek Legislation. Subsequently, the competent Professional Organization or the competent Administrative Authority have the obligation to matriculate the concerned engineer in their Matriculation Registers.

By application of the dispositions of Ministerial Decision number ΛΘΔ/δ/87/9 issued by the Minister of Economy and Finance, the Minister of Environment, Planning and Public Works and the Minister of National Education and Religion, the aptitude test provided for in article 5 of PD 165/2000 is done – as far as engineers are concerned - by a special Committee at the Technical Chamber of Greece (TEE).             

The aptitude test is in writing and can last for eight (8) hours at maximum. The test is done in the greek language. Its object is limited to the sector(s) of knowledge which have been imposed as compensatory measures by the Committee of Recognition of Professional Equivalence of Titles of Third Level Education (Σ.Α.Ε.Ι.).

As far as engineers are concerned, the adaptation practice is done under the supervision and the control of the Technical Chamber of Greece, (TEE), in Organisms or offices preparing studies.

The valuation of the adaptation practice is done within thirty (30) days as of the filing of a relevant application by the concerned person, by a Special Commission nominated by TEE. The purpose is to confirm the theoretical and practical knowledge, which was acquired by the applicant during the adaptation practice period regarding the activities, which he wishes to exercise.  

The valuation of the adaptation practice is achieved by an interview of the concerned person, which lasts for two (2) hours maximum. This interview is done in greek by a Commission composed of three (3)  members.

In case of failure, the concerned person may continue his adaptation practice under the same conditions and be revaluated within six (6) months. In case of a second failure, the concerned person has only the possibility to participate to an aptitude test, otherwise his application is rejected.

In principle, the Committee is not entitled to require from the applicant to take a language test, whether in writing or oral. But it may be justified in doing so for certain professions, for the practice of which the knowledge of the language is essential. In any case, whatever the regulated profession is, the relevant application will be processed in greek and any aptitude test the applicant might be required to take will also be in greek.

In case the Committee renders a decision rejecting the application of the candidate, the reasons grounding the rejection must be stated in said decision. If the applicant disputes the decision, he may file an appeal against it before the competent Administrative Court(s).

In case the applicant’s degree has been acquired in a State which is not a Member of the European Union, the applicant should first have his degree recognized in a State Member of the European Union (other than Greece). He should also have exercised the profession, which he wishes to practice in Greece, in this other Member State, for three (3) years at least

After obtaining from the above Committee a decision of recognition of his professional qualification, the concerned engineer must register himself with TEE in order to obtain a registration number and a card showing that he is a member of the Technical Chamber of Greece. Thereafter, TEE notifies his matriculation with it to the TSΜΕDΕ (which is the Social Security Fund for engineers, architects. e.t.c). In case the engineer will exercise activities having as object the preparation of studies regarding urbanism, he must register himself with the local Construction Office. In case he is to conduct activities having as object the preparation of industrial studies or the supervision of the functioning of industries, handicraft enterprises e.t.c., he must register himself with the local Directorate of Industry of the Prefecture in the territorial area of which he will practice. If he is to conduct construction activities, he has to register himself with the MEK (the Registry of Constructors Experience).   

B. ARCHITECTS

Greek Legislation has been adapted to the dispositions of the above mentioned EEC Directive of the Council number 85/384/EEC (L.223) as  modified and completed, by promulgating Presidential Decree number 53/2004, which was published in Issue number 43/11.2.2004, Bulletin A’ of the Greek Government Gazette.

According to the dispositions of article 2 of P.D. 53/2004, greek citizens,  citizens of other State Members of the European Union and citizens of States Members of the European Economic Space having obtained their diplomas in another State Member of the European Union or of the European Economic Space may establish themselves in Greece in order to exercise activities in the architecture sector, either as freelancers or as employees, after they obtain a relevant permit granted by the Technical Chamber of Greece (T.E.E.) according to the disposition of the above Presidential Decree.

By application of article 6 of the above Presidential Decree, in order to obtain the above permit from the TEE, the following documents are needed:

a.      an application of the concerned person.

b. a diploma, certificate or other title among those mentioned in articles 4 and 5 of said Presidential Decree mentioning, where needed, the date on which the studies have started.   

c. a certificate of nationality or a certified photocopy of the identity card or of the passport of the applicant.

d. an affidavit provided for by article 8 of L. 1599/1986 signed by the applicant, by virtue of which he represents that he knows greek language to the extent which his necessary for him to exercise the profession of architect in Greece.  

e. an extract of the Criminal Registers or another equivalent document (for example, a good standing certificate) or a statement of the concerned person that no criminal sanctions have been recorded concerning him.

f. a certificate of the competent Authority of the State Member of which the applicant is a citizen or in which he has his domicile, regarding any professional or administrative sanctions imposed upon him in case he has exercised the profession of architect in said State Member.

g. a receipt regarding payment to TEE of the duties for the granting of the permit regarding the exercise of the profession according to the dispositions applicable in general to greek architects.

The documents mentioned hereinabove under (b), (c), (e) and (f) must be officially translated into greek.

The diplomas, certificates or other titles, which must be submitted as above together with the application to be filed by the concerned architect with TEE, are set forth by articles 4 and 5 of PD 53/9.2.2004.

According to article 4, the diplomas, certificates or other titles, which are delivered by other State Members of the EU or of the European Economic Space to greek citizens and citizens of other State Members either of the EU or of the EES, who had the required qualifications to get such diplomas on August 5, 1985 or to those who, at the latest during the third academic year after the above date, had commenced studies leading to the obtaining of the relevant diplomas, certificates and titles are accepted for the exercise in Greece of the profession of architect according to article 2 of the above Presidential Decree and they have the same validity as diplomas granted by Greece in the sector of architecture.

The diplomas, certificates and other titles in question are the following:

 a. those listed in Annex I of article 13 of  PD 53/2004.

Said Annex I, which has in fact the same contents as articles 11 and 13 of Directive 85/384/EEC of the Council, includes a list of diplomas, certificates and other titles regarding the architecture sector based on rights already acquired per State.

As far as Germany is concerned, the diplomas ranging for application of article 4 paragraph (a) above are the following :

  i. the diplomas granted by the High Schools of Fine Arts (Dipl. – Ing. Architekt (Hfbk).

ii. the diplomas granted by Technische Hochschulen (Architektur / Hochbau), by the Architektur Hochbau of Technical Universities, by Architektur/ Hochbau of Universities, as well as by the Architektur / Hochbau Gesamthochshulen.

iii. the diplomas granted by Architektur / Hochbau Fachhochschulen and the Architektur Hochbau Section of Gesamthochschulen, which must be accompanied, when the duration of the studies is less than four (4) years but of three (3) years, at least, by a certificate issued by the Professional Association where the concerned architect is affiliated (Ingenieur Grad), evidencing a period of professional experience of four (4) years in Germany.

4. the certificates (Prufungszeugnisse), which have been granted before January 1, 1973 by the Architecture Section of the Ingenieurschulen and of the Werkkunstschulen. Said certificate must be accompanied by a certificate of the competent Authorities evidencing that the concerned person has been successful in a test based on his titles, according to article 13 of Directive number 85/384/EEC. The test concerns the appreciation of studies (surveys) prepared and executed by the candidate during the exercise of his activities in the sector of architecture during a period of six (6) years at least.

b. the certificates granted to greek citizens and to citizens of other State Members of the EU by other State Members of the EU, where they were in force on August 5, 1985 or where regulatory dispositions regarding the right to exercise activities in the architecture sector under the title of architect have been put into force no later than August 5, 1987. The above certificates must evidence that the concerned person had the right to bear the professional title of architect either before or on August 5, 1987 and that he had actually activities in the sector of architecture for a period of at least three (3) consecutive years during the five (5) years preceding the issue of the specific certificate. 

c. the certificates of the competent Authorities of Germany, evidencing the equivalence of the education titles, which have been issued after May 8, 1945 by the competent Authorities of the ex - Popular Democracy of Germany under the title set forth in Annexe I (A) of article 13 of PD 53/2004, regarding Germany and enumerated hereinabove.

According to article 5 paragraph 1 of the above Presidential Decree, the following diplomas, certificates and other titles granted by other States Members of the European Union and States of the European Economic Space to greek citizens, to citizens of other State Members of the EU or of the States of the European Economic Space are recognized and have the same validity as those granted in Greece allowing the exercise of the profession of architect under the title of architect according to the dispositions of article 2 of the above P.D.

The diplomas, certificates or other titles in question are the following :

  a. the diplomas, certificates or other titles mentioned in Annexe II of article 13 of the above PD, which fulfil the criteria of article 3 of said Presidential Decree, have been notified according to the procedure of article 7 of Directive 85/384/EEC and have been published in the Official Gazette of the European Union.

According to the above mentioned article 3, the education which leads to the obtaining of diplomas, certificates and other titles granting to greek citizens and citizens of other State Members of the EU or of the EES  the right to exercise the profession of architect in Greece is obtained by means of University level studies having architecture as main object.     

The above education includes at least four (4) years of full time studies or studies of at least six (6) years out of which at least three (3) years   full time.

The education is confirmed after a successful test of an universitary level.

The above mentioned Annexe II lists the diplomas, certificates and other titles of the Architecture Sector, per State.

As far as Germany is concerned, the diplomas ranging for application of article 5 paragraph 1 (a) above are the following :

     i. the diplomas (Diplom. – Ingenieur), which are granted by the Architektur/Hochbau of Universities.

   ii. the diplomas (Diplom. – Ingenieur Universitat), which are granted by Architektur/Hochbau of Technische Hochschulen, by the Architektur/Hochbau of Technische Univerdsitaten, by Architektur/Hochbau Gesamthochschulen, by Hochschulen Furbildente Qunste and by Hochschulen Filqunste fur Schonequnsten.

iii. the diplomas (Dipl. Ingenieur, Dipl. Ingenieur FH), which are granted by Architektur/Hochbau of Fachhochschulen and by Architektur/Hochbau of Universities, which have been unified in Gesarhochschulen in the frame of education corresponding to those of Fachhochschulen.

By derogation to the above, diplomas which are granted after an education of at least three (3) years at a Fachhochschulen, which existed already on August 5,1985 in the Federal Democracy of Germany, are also recognized provided they are accompanied by a certificate evidencing a period of practical exercise in the Federal Democracy of Germany of at least four (4) years, granted by the Professional Association in the Registers of which the concerned architect is matriculated.

b. the certificates evidencing that the concerned person is allowed to bear the title of architect by application of the Law attributing the right to the competent Authority of a State Member of the EU or of a State of the EES to grant said title to citizens of State Members of the EU or of States of the EES, who achieved works of an exceptional quality in the sector of architecture. 

c. the certificates granted by the competent Authority of a State Member of the EU or of a State of the EES, after a successful test of a level equivalent to the level of the test regarding the achievement of Universitary studies provided for in article 3 paragraph 2 (b) of P.D. 53/2004, to persons who have achieved Universitary part time education programs, which do not fulfil the conditions of article 3 paragraph 2 (a) of said Presidential Decree, provided the education in question fulfils the requirements of article 3 paragraph 1 of the above Presidential Decree and provided also that the concerned person works for at least seven (7) years in the architecture sector under the supervision of an architect or an office of architects.         

The TEE examines also the diplomas, certificates and other titles regarding the sector of architecture, which the concerned person has acquired out of the EU, provided that said diplomas, certificates or other titles have been recognized by another State Member of the EU. The TEE examines as well the education or the professional experience which the concerned person has acquired in another State Member of the EU.

The TEE issues its decision within three (3) months as of the submission of the complete file by the concerned candidate.

When the application is rejected, the relevant decision must mention the grounds on which it was taken. The applicant may file with the Council of the State (Conseil d’Etat) (which is the High Greek Administrative Court) an application seeking cancellation of said decision of the TEE based on the combined dispositions of the last subparagraph of paragraph 2 of article 5 and of paragraph 3 of article 7 of  P.D. 53/2004.

According to article 8 of the above Presidential Decree, the citizens of the State Members of the EU and of the States of the EES, who establish themselves in Greece and acquire the permit needed to exercise the profession of architect must register themselves with the TEE. This is mandatory. After such registration, they have all the rights and obligations accruing out of the dispositions of the Greek Legislation and the professional ethic rules applying to architects who are also engineers.

By application of article 9 of the above Presidential Decree, citizens of State Members of the EU and of States of the EES, who are established in another State Member of the EU or of the EES and are holders of diplomas, certificates or other titles provided for by articles 4 and 5 of the Presidential Decree may grant services in the sector of architecture. The TEE and its Departments keep special Registers where they must register - following an application of the concerned persons - those citizens of State Members of the EU and of States of the EES, who grant in Greece services in the sector of architecture.

In case the granting of services entails the preparation of a study in Greece, the concerned architect must first notify TEE accordingly.

The concerned architect must also submit to TEE a certificate of the competent Authority of the State Member of the EU or of the EES, where he is established, evidencing that (a) he exercises lawfully the relevant activities in said State and (b) that he has the diplomas, certificates or other titles required for the granting of the services in question, which meet the criteria of articles 3,4 and 5 of P.D. 53/2004. Said certificate is valid for twelve (12) months as of the date on which it was issued.

The citizens of the State Members of the EU and of the States of the EES, who grant services in the sector of architecture, have in Greece, as far as the granting of services is concerned, all the rights and obligations of architects – engineers holders of diplomas and they are submitted to the relevant dispositions professional or administrative disciplinary.

II. ACTIVITIES HAVING AS OBJECT THE CONSTRUCTION OF EITHER PRIVATE OR PUBLIC WORKS OR THE GRANTING OF SERVICES.

A distinction must be done between the cases where a German company establishes itself in Greece by creating a subsidiary or a branch office and the cases where a German company has not any establishment in Greece. In case of a subsidiary, which is a greek company or of a branch office located in Greece, they will be submitted to the dispositions applicable to the Greek Engineering (Technical as we call them) companies.

Yet, a German company and, in general, a company with registered office in another State Member of the European Union or of the European Economic Space must not necessarily establish itself in the country in order to be able to conduct activities in Greece.

Actually, Based on the principle exposed hereinabove regarding the free circulation of persons between the EU State Members, a German company has not to establish itself in Greece in order to exercise its activities within the Greek Territory. It is clear that, if it has not any establishment in Greece, the German Engineering company will conduct its activities through physical persons. If said persons are engineers or architects, the rules exposed hereinabove in Chapter I will apply in order for them to be able to exercise their profession.

In case now a German company wishes to conduct activities consisting of the construction of works, a distinction has to be done between private and public works.

1. PRIVATE WORKS

  in order to qualify for being entrusted with the construction of private works having has object, mainly, the building of houses, offices, plants, workshops, warehouses, hotels, hospitals, schools e.t.c. a technical undertaking, which can be either a physical person or a legal entity – should be – according to a project of Law, which is not yet in force – matriculated with the Registry of Constructors of Private Works, in the category in which the specific work is classified.

According to the same project of Law as above, technical undertakings having their seat in other State Members of the EU may act in Greece as contractors according to the dispositions each time in force. In principle, the above undertakings should have in their home State the capacity to act as constructors. 

A German company or a company with registered office in any other State Member of the EU will possibly establish itself in Greece through a subsidiary, in which case the greek subsidiary will have to matriculate with the above Registry. If it does not create a greek subsidiary, then the German company (or the German undertaking, in general) will obviously exercise its activities through employees of his being engineers, architects e.t.c, as stated above. Again, the rules exposed in Chapter I  of this present will apply to said architects, engineers e.t.c. More precisely, the rules which will apply are those govering the temporary practice in Greece by an engineer or an architect and not the rules concerning the permanent establishment in Greece of a german engineer or of a german architect.

  2. PUBLIC WORKS    

Public works are governed in Greece by Law 1418/1984 as it is in force today after various modifications of it.

According to article 5 of the above mentioned Law, public works are entrusted with local undertakings which are registered with the Registry of Contractor Undertakings (M.E.E.Π.), in the category and the level which correspond to the specific work. Public works are also entrusted with contractors established in other State Members of the European Union according to the legal dispositions each time in force.

By virtue of Presidential Decree 334/2000, Greek Legislation regarding Public Works has been adapted to the dispositions of Directive 93/37/EEC, as amended and completed.

More precisely, article 1 of the above Presidential Decree provides that its purpose is to adapt Greek Legislation regarding Public Works to the dispositions of Directive 71/304 dated July 26, 1971 re: «abolishment of the restrictions to the free granting of services in the sector of contracts for public works and the awarding of contracts regarding public works through agencies or subsidiaries, to the dispositions of Directive 93/37/EEC of the Council, dated June 14, 1993 re: «coordination of the procedures regarding the conclusion of contracts for Public Works» and to the dispositions of Directive 97/52/EEU of the European Parliament and of the Council dated October 13, 1997 re: «modification of Directives 92/50/EEC, 93/36/EEC and 93/37/EEC re: «coordination of the procedures regarding the conclusion of contracts for the granting of services, contracts for public supplies and contracts regarding Public Works, respectively», to the extent it concerns the modification of the dispositions of Directive 93/37/EEC, as well as to the modification of the same Directive 93/37/EEC contained in Law 2155/1993, Decision 7/94 of the Mixed Commission of the European Economic Space and L. 2272/1994.

By application of article 25 of P.D. 334/2000, any contractor wishing to participate to a call for bids regarding a public work has to prove that he is registered in the relevant Professional Registers under the conditions provided for by the Legislation of the country where he is established.

More particularly, a German contractor, who wishes to participate to a call for bids regarding public work(s) to be constructed in Greece, has to prove that he is lawfully registered with the Handelsregister.

In Greece, the contractor has to prove that he is matriculated with the Registry of Contractor Undertakings (MEEΠ), which is kept at the Ministry of Environment, Planning and Public Works.

Further, contractors have to prove their financial capacity by means of appropriate bank certificates, financial statements (Balance Sheets e.t.c.) or extracts thereof, in case financial statements must be published according to the Legislation of the country where the contractor is established or by an affidavit regarding the total amount of the total turnover of the undertaking and the turnover regarding the execution of works during the three (3) precedent financial years. The authority being the master of the work fixes in its call for bids or in the invitation for submission of offers, which kind of supporting documents it has selected for the bidders to prove their financial capacity and which other supporting documents have to be produced. 

By application of article 24 or P.D. 334/2000, a contractor can be excluded from a call for bids procedure when: (a) he has been declared bankrupt, he is under liquidation, he has ceased his activities, he has been put under compulsory administration or bankruptcy compromise or in any other similar situation, (b) proceedings have started seeking his declaration into bankruptcy, his setting under liquidation, under compulsory administration or bankruptcy compromise or any other similar procedure provided for by the Legislation of the State Member where he is established, (c) he has been condemned for a criminal act connected to his professional behavior by means of a final judgment, (d) he has committed a heavy professional mistake, (e) he has not fulfilled his obligations regarding the payment of the duties to the Social Security Fund according to the Legislation of the State where he is established, (f) he has not fulfilled his obligations regarding the payment of taxes according to the Legislation of the State where he is established and (g) he has been declared guilty for serious misrepresentations when he provided the information requested by application of articles 24 to 29 of the above Presidential Decree.    

The master of the work accepts as a proof regarding the data mentioned hereinabove under (a), (b) and (c) an extract of the Punishment Records or, in case such a document is not provided in a specific State Member, an equivalent document which is issued by a Judicial or Administrative Authority of the State of origin or of the State of establishment. As far as the data mentioned above under (e) and (f), a certificate issued by the competent Authority of the State, where the contractor is established, is acceptable.

In case, in a specific State Member such documents or certificates as those mentioned hereinabove are not provided, they can be replaced by a sworn affidavit of the concerned person and in case the Legislation of a specific State Member does not provide sworn affidavits, the documents and certificates in question can be replaced by an official representation, which is done by the concerned person before a Judicial Authority or an Administrative Authority or a Notary or the competent Professional Organization of the State of origin or the State where the contractor is established.

Besides the above quality criteria set forth by article 24 of P.D. 334/2000, the candidate contractor must prove his technical capacity. Such capacity can be considered to accrue out of: (a) titles regarding his studies (diplomas, certificates e.t.c.) and his professional capacities, as well as the studies and professional capacities of the staff of his undertaking and mainly of the persons who are responsible for the execution of the work(s), (b) the list of works already executed during the last five (5) years, which must be accompanied by a certificate showing the appropriate execution of the most important of those works. The certificate in question must mention the value, the time and the place of execution of the works. It must also specify whether the works have been executed in compliance with the technical rules and whether they have been achieved properly, (c) a commiting statement regarding the technical means, the engineering and technical equipment of the contractor regarding the execution of the work(s), (d) a statement representation regarding the annual average of the workmanship and the number of the officers of the undertaking during the last three (3) years and (e) a statement representation regarding the technical staff and the technical departments, which the contractor will use for the execution of the work(s), regardless to whether they belong or not to his undertaking. The master of the work fixes in the frame of the call for bids or in the invitation for submission of offers which out of those enumerated above documents must be produced.

According to article 29 of P.D. 334/2000, the official lists of the recognized contractors of the State Members of the EU and of the European Economic Space are those which fulfill the conditions set forth by  article 24 paragraphs (a) to (d) and (f) and by articles 25, 26 and 27 of the above Presidential Decree.

In all the cases of contracts regarding public works, the master of the work requires from the contractors, who are registered in the above mentioned official lists of recognized contractors of the States Members of the European Union or of the European Economic Space, to submit a certificate of registration issued by the competent authority. Said certificate must mention the supporting documents based on which the registration in the above lists was done, as well as the classification of the contractor in said lists.

Companies or physical persons established in other States Members of the European Union or of the European Economic Space, where no official lists of recognized contractors are kept, may participate to tenders the object of which is the construction of public works, which are similar – from a quality and quantity view point – with those which they have already constructed,  provided they submit the documents mentioned in articles 24 to 27 of P.D.  334/2000, evidencing that they fulfill the same formal and substantial conditions under which those who are registered with the Register of Contractor Enterprises (MEEΠ) provided by article 16 of L. 1418/1984 qualify for participation in such tenders.

The registration in the official lists of paragraph 1 of article 29, which is certified by the competent Organism of a State Member, constitutes for the Authorities of any other State Member, where the call for bids takes place, a presumption that the bidder qualifies for the execution of the work(s), which correspond to his classification.

Physical persons or legal entities located in other States Members may register themselves in the Register of Constructors Experience, (M.E.K.) and in the Register of Constructors Enterprises (M.E.E.Π.), respectively, under the same conditions which are applicable to greek citizens and necessarily under the conditions provided for in articles 24 to 27 of P.D. 334/2000.     

Although the matriculation with the M.E.K. and the M.E.E.Π. is not mandatory for physical persons or enterprises, respectively, located in other States Members of the EU, it is interesting to know what are the conditions under which such a matriculation can be done, since German engineers, architects and technicians in general or German contructors enterprises may wish to register in the above mentioned two Registers. 

As far as the M.E.K. (Registry of Constructors Experience) is concerned, only physical persons may be registered in it. On the contrary, only enterprises may register in the M.E.E.Π. (Registry of Contracting Enterprises).

The registration in the M.E.K. is combined with the classification to one or more categories of works. The criteria based on which the registration is done are the experience and the titles of studies (diplomas, certificates e.t.c.).

 The holders of diplomas of high level Education Institutions can be registered after three (3) years have elapsed as of the date on which they have obtained the permit to exercise their profession. The registration is done in level A. A registration can be done directly in level B in case five (5) years are completed as of the date on which the concerned person has started practicing, provided he proves his relevant experience.

The documents needed for the registration in the M.E.K., which must accompany the relevant application, are the following : 

    - copy of a certificate of studies (diploma, etc….) and of the permit to exercise the profession, duly certified.

In case the diploma has been issued by a foreign high level Education Institution, besides a photocopy thereof, an official translation of it is needed, as well as a certificate of the Technical Chamber of Greece (TEE) mentioning the date on which the concerned person has acquired the permit of TEE to exercise the profession in Greece.

Possibly a certificate of DIKATSA (the Administrative Authority which is competent to deliver equivalence certificates to persons holding foreign diplomas, following written and/or oral tests) can also be required regarding the equivalence of the Institution having issued the diploma with the corresponding Greek Education Institution.

   - a certificate issued by the Municipality or the  Community where the candidate is matriculated or a certified photocopy of his identity card.   

  - a curriculum vitae stating the professional and scientific occupations of the candidate.

 - a receipt regarding the payment of the duties pertaining to the registration under discussion.

According to the Introduction Report of L. 1418/1984, the organization by it of new types of exercise of the profession of contractor is due to the fact  that, in order for an undertaking, which acts as a contractor for public works,  to be in a position to achieve successfully its task, it must have the required technical capacity and technical ability in this respect. The technical capacity is acquired through appropriate studies and experience of the staff of the enterprise. The technical ability is obtained through rational organization, appropriate selection of the staff, technical means and financial and credit ability. 

The above two conditions, i.e. the technical capacity and the technical ability, have been used as pilot for the main legal regulations and especially for those regarding the two above Registers, i.e. the M.E.E.Π. and the Μ.Ε.K. By means of the Μ.E.Ε.Π. the technical and the financial ability of the enterprises are followed up, while by means of the Μ.Ε.K. the experience of the staff of said enterprises is verified.   

The M.E.K. is composed of six (6) categories of works (works connected to the construction of streets e.t.c., buildings etc.. hydraulic works, works connected to the construction of ports, electromechanical works and industrial works or works connected to energy.

Based on their capability, the contractors enterprises are classified in MEEΠ in eight (8) classes : A, B, C, D, E, F, G, and H.

Undertakings belonging to physical persons, who are registered with M.E.K. and undertakings having the form of partnerships or limited liability companies all the members of which are persons registered with M.E.K. can be registered in classes A, B and C of MEEΠ.

Only enterprises having the form of sociétés anonymes or of limited liability companies can be registered, in the other classes, except class D where, besides societes anonyms and limited liability companies, partnership and personal undertaking may be registered under the conditions set forth below

For the classification of an enterprise, which wishes to register with MEEΠ, the following data are taken into consideration :

   a. the number of technicians, who work for it and are registered with M.E.K. More precisely, in order to be registered in class A of M.E.E.Π., the concerned enterprise must have at least one member of its staff registered in class A of M.E.K.. To register in class B of M.E.E.Π., at least one member of the staff of the enterprise must be registered in class B of M.E.K., to register in class C of M.E.E.Π., at least one member of the staff of the enterprise must be registered in class C of M.E.K. and to register with class D of M.E.E.Π., at least  one member of the staff of the enterprise must be registered in class D of M.E.K, in case the enterprise is a personal undertaking. In case the enterprise is a société anonyme or a limited liability company in order for it to be registered in class D of MEEΠ, it must have at least one member of its staff registered in class D of M.E.K. and at least another member of its staff registered in class B of M.E.K. or instead two members at least of its staff registered in class A of M.E.K., To register in class E of M.E.E.Π., the concerned société anonyme or limited liability company must have at least one member of its staff registered in class C of M.E.K. and one member of its staff at least registered in class B of M.E.K. For the registration in class F of M.E.E.Π., two members at least of the staff of the société anonyme or the limited liability company must be registered in class D and two in class C of M.E.K.. To register in class G of M.E.E.Π., the concerned société anonyme or limited liability company must have at least three members of its staff registered in class D of M.E.K., two members of its staff at least registered in class C of M.E.K. while for the registration in class H of M.E.E.Π., five members at least of the staff of the concerned société anonyme or limited liability company must be registered in class D of M.E.K. and at least six members of its staff in class C of M.E.K..

 b. minimum level of capital.

In order to be registered with M.E.E.Π., an enterprise, regardless to what is its legal form, must have a capital of :

 - four thousand four hundred and two (4.402) euros, for registration in class A of Μ.Ε.Ε.Π..  

  - seventeen thousand six hundred and eight (17.608) euros, for registration in class B.  

 - forty four thousand and twenty (44.020) euros, for registration in class C.  

  - eighty - eight thousand and forty one (88.041) euros, for registration in class D, in case the concerned undertaking is a personal enterprise.

  - one hundred ten thousand and fifty – one (110.051) euros, for registration in class D in case the concerned enterprise is a societe anonyme or a limited liability company.  

  - two hundred and twenty thousand one hundred and two (220.102) euros, for registration in class E.  

  - four hundred and forty thousand two hundred and five (440.205) euros, for registration in class F.

  - one million three hundred and twenty thousand six hundred and sixteen (1.320.616) euros for registration in class G and

  - five million two hundred and eighty – two thousand four hundred and sixty – five (5.282.465) euros, for registration in class H.  

3. PUBLIC CONTRACTS FOR GRANTING OF SERVICES.  

The above matter is regulated by Presidential Decree number 346/1998 as amended and in force to – day, by virtue of which Greek Legislation has been adapted to the dispositions of Directive 92/50/EEC of the Council dated July 18, 1992 as amended by Directive 97/52/EEC of the Council. With the exception of its article 41 the above Directive was abolished by Directive 2004/18 EU re : « coordination of the procedures for the conclusion of public contracts regarding public works, supplies and services », which has to be included in the National Legislation of the EU State Members by January 2006.

According to article 2 of P.D. 346/1998, is considered to be a person granting services any physical person or legal entity having activities consisting of the granting of services in general, with the exceptions provided for in the first paragraph of the same article the main ones of which are the contracts having as object State supplies, as well as the contracts regarding public works, the contracts having as object the acquisition or the taking on lease of land, of existing constructions or other immovable assets, the contracts regarding the purchase, the development, the production of programs by radio organisms, the contracts regarding services connected to telephony, telefax, mobile telephones e.t.c., the contracts regarding the granting of financial and credit services concerning the issue, the purchase, the sale and the transfer of titles or other financial products, as well as the services granted by central Banks, the employment contracts, the contracts regarding services related to research and development.  

In case the public contract has as object both the supply of products in the sense of Presidential Decree 370/1995, as well as the granting of services in the sense of Presidential Decree 346/1998, it falls in the field of application of Presidential Decree 346/1998 if the value of the subject services exceeds the value of the products to be supplied according to the contract.

Article 18 of P.D. 346/1998 provides that the contracts governed by it are concluded based on the criteria, which are set forth by its articles 30 and 31 after its article 19 is taken into consideration and after it is verified that the persons granting the services are capable to grant them properly based on the criteria of articles 25 and 26 and provided they are not excluded based on article 24 of said Presidential Decree.

Article 24 sets forth the criteria of quality selection, which correspond to those set forth by article 24 of Presidential Decree 334/2000 regarding public works. Articles 25 and article 26 are equivalent to articles 25 and 26, respectively, of P.D. 334/2000. 

Further, the criteria regarding the technical capacity of the candidates set forth in article 27 of P.D. 346/1998 are equivalent to those set forth in article 27 of P.D. 334/2000 regarding public works.

By application of paragraph 8 of article 6 of L. 1418/1984 re: «public works and regulation or relevant matters», when public works are to be executed the forecasted total cost of which exceeds thirty million (30.000.000) euros, a consultant of any specialization (technical, financial, organizing etc.) can be appointed by the master of the work. The consultant may be a local or a foreign physical person or legal entity. The consultants are appointed to grant services needed for the execution of the work(s) in question. The appointment is done by means of a contract. The way of the appointment, the services to be granted by the consultant, the terms and conditions of the contract and the fee of the consultant are fixed by means of a Decision of the competent Minister who is not bound by any general or special disposition.

III. JOINT VENTURES.

1. GENERAL RULES – JOINT VENTURES HAVING AS ABJECT THE CONSTRUCTION OF PRIVATE WORKS

Joint Ventures are not specifically regulated in Greek Legislation. In general, a joint venture is not a legal entity having a legal personality separate from those of its members. As a matter of fact Joint Ventures are governed by the dispositions of articles 741 to 784 of the Greek Civil Code, which are applicable to civil companies i.e. partnerships with no legal personality.

As a consequence of the above, a Joint Venture or Consortium has neither assets nor liabilities per se. The assets belong to the members of the Joint Venture, who are responsible jointly and severally for the liabilities of the Joint Venture. The Law does not provide any obligation for the Joint Venture to have any capital. Obviously, the Joint Venture needs a working capital, but this is only a practical necessity. The Joint Venture is administered by all its members acting jointly. For practical reasons the members of the Joint Venture usually designate one or more physical persons to manage its business. When the members of the Joint Ventures are companies, partnerships of Joint Ventures themselves, each one of them designates, most often, one or more physical persons to act as its representative(s) jointly with the representative(s) of the other members of the Joint Venture, in order to conduct the business of same, to contract in its lieu and on its behalf, to subscribe obligations in its name e.t.c..  

The above are the general rules applicable to Joint Ventures regardless to their specific object.

In case a Joint Venture has as object construction works, a distinction has to be done between private construction works and public construction works. In case of private construction works, the above mentioned general rules apply to the Joint Venture. Actually, there are no particular rules governing Joint Ventures having as object the construction of private works.

The only matter which was specifically regulated by Law regarding construction Joint Ventures was, up to 2001, their fiscal regime. Yet, by application of article 7 of Law 2940/2001, Joint Ventures having as object the construction of either private or public works are taxed by application of the general rules consisting of the application of a tax coefficient to the net profits of the Joint Venture, which consist of the balance of the gross income minus the expenses. This was applied for the first time regarding the taxation of Joint Ventures having as object the construction of either private or public works as of the year 2003 for the income generated in 2002. Before that, the taxation of construction companies, as well as of construction Joint Ventures was done by application of a coefficient on their gross income to fix their net profits on which the tax was levied. 

It accrues out of the above that the only case where a Joint Venture is treated by the Law as a legal entity having its own legal personality, i.e. the only case where the Joint Venture is treated as being a separate unity, is the tax aspect, where the profits of the Joint Venture are taxed as such, i.e. as being the profits of the Joint Venture per se, without being splitted between its members for taxation purposes. 

  2. JOINT VENTURE HAVING AS OBJECT THE CONSTRUCTION OF PUBLIC WORKS.

By application of article 5 of L. 1418/1984 re: «public works and regulation of connected matters», enterprises, which are contractors of public works, may form a Joint Venture for the construction of a work awarded to one or more of the enterprises, which are members of the Joint Venture, provided that : (a) all the members of the construction Joint Venture belong to the classes and categories of the Register of Contractors Enterprises (M.E.E.Π.) and (b) the agreement pertaining to the formation of the Joint Venture is notified to the master of the work.

A distinction has to be done between the cases where the Joint Venture, which will execute the public work, is formed after the project has been awarded to one of its members and the case where the project is awarded to the Joint Venture itself, i.e. the case where the Joint Venture has been formed before the project was awarded and has participated as such to the tender.

The number of the members of a construction Joint Venture cannot be higher than three (3) in case the project has been awarded to one enterprise, which has formed, later on a Joint Venture with other enterprises. In case the project has been awarded to a Joint Venture of construction enterprises as of the beginning, the number of the members of the Joint Venture can increase later on, but only up to the double of its initial members.   

If the project was awarded to one contractor enterprise, which has formed afterwards a Joint Venture with other enterprises, the first enterprise must have a total percentage of participation in the construction Joint Venture of at least fifty per cent (50%). Each one of the other construction enterprises participating to the Joint Venture must have a minimum percentage of participation of fifteen per cent (15%) each one of them.

If the contractor is a Joint Venture itself, it must keep a total percentage of participation in the new Joint Venture of at least fifty per cent (50%). This is applicable in case the project was awarded to a Joint Venture which has thereafter formed another Joint Venture with other enterprises. Each one of the other enterprises participating to the Joint Venture, must have a minimum percentage of participation of fifteen per cent (15%).

To be noted that, in case the project was awarded to a Joint Venture same may form a Joint Venture, with other construction enterprises, which however cannot be Joint Ventures themselves.

The members of the Joint Venture are responsible jointly and in full vis –  à – vis the master of the work regarding the entire project.

By application of article 23 of P.D.334/2000 regarding the adaptation of Greek Legislation concerning public works to the dispositions of Directive 93/37/EEC as amended and completed, a Joint Venture of construction enterprises may submit offers without taking to this end a specific legal form. Yet, the Joint Venture to which the project is awarded might be requested to take a specific legal form.   

By application of the combined dispositions of article 5 paragraph 7 and article 15 paragraph 1 of L. 1418/1984 re: «public works and regulation of connected matters», Joint Ventures are allowed between local construction enterprises registered in the Register of Contractors Enterprises (M.E.E.Π.), in the category and in the class corresponding to the project, as well as between local construction enterprises and construction enterprises of States Members of the European Union according to the dispositions each time in force. The enterprises in question can be personal undertakings or companies of any legal form or Cooperatives.

As stated above, in case a Joint Venture is formed in view of the execution of a public work after the project was awarded to one of its members, the formation of the Joint Venture must be notified to the master of the work. This is done by means of an application submitted to the Directorate managing the project. The application must be accompanied by an original counterpart of the agreement pertaining to the formation of the construction Joint Venture, as well as by a file containing the supporting documents provided for by paragraph 3 of Ministerial Decision number D. 17a/01/13/CN 430/202 of the Ministry of Environment, Planning and Public Works.

The agreement pertaining to the formation of the Joint Venture is under  condition of its approval according to the above mentioned Ministerial Decision. Said agreement must contain at least the following data :

     a. explicit mention of the data of the contracting construction enterprises evidencing that the construction Joint Venture has been validly formed and that its members (construction enterprises) have the qualifications corresponding to the classes and categories of the project, as same is defined in the call for bids. More particularly the following data must be mentioned:

      i. in case of a personal construction undertaking registered with M.E.E.Π., the name and the surname of the concerned physical person, his address, his registration number with M.E.K. and the classes and categories of works for which he is registered.

     ii. in case of a construction enterprise being a legal entity registered with M.E.E.Π., its full company name and its title, its address, its registration number with M.E.E.Π. and the classes and the categories of works for which it is registered, as well as the name, the surname, the address, the profession and the capacity of the physical person, who is authorized to sign the agreement pertaining to the constitution of the construction Joint Venture, as well as the date of the resolution of the organ binding the enterprise according to its Articles of Incorporation, regarding the execution of the project jointly with the other members of the construction Joint Venture and the signing of the agreement pertaining to the formation of the Joint Venture.     

    iii. in case of a construction enterprise having its registered office abroad and not being registered with M.E.E.Π., the data mentioned hereinabove in paragraphs (i) and (ii) (depending on whether the construction enterprise is a personal undertaking or a legal entity) are needed and, instead of the data regarding the registration with M.E.E.Π., the data are needed, which evidence that the concerned enterprise is actually a construction enterprise authorized - according to the Law of the State where its registered office is located - to participate to call for bids and to undertake the execution of public works of the class and of the category of the specific work.

b. specific mention of the percentage of participation of each construction enterprise being member of  to the construction Joint Venture.

 c. express reference of the work for the execution of which the Joint Venture is formed evidencing that said work is the same as the one awarded to the initial contractor.  

 d. express and unreserved statement of all the members of the Joint Venture that they accept all the terms and conditions of the contract between the master of the work and the initial contractor and regarding their joint responsibility vis – à – vis the master of the work for the entire work.

 e. designation of a physical person as representative of the construction Joint Venture, as well as of a deputy of his.

 The following apply to the above persons :

    i. in case the initial contractor is a Joint Venture, its representative must be either a member of it or the legal representative of a legal entity being a member of the Joint Venture. The deputy may be a member of the Joint Venture or a legal representative of another member of the construction Joint Venture.

  ii. in case the initial contractor is a personal construction enterprise, its representative must be the physical person to whom the enterprise belongs  or the legal representative of the company in case the contracting enterprise is a company, while the deputy may be a person designated by the other members of the construction Joint Venture.    

The designation of the representative of the Joint Venture and of his deputy must be done by virtue of notarial deed(s).

f. The file accompanying the application provided hereinabove regarding the notification of the formation of the Joint Venture to the master of the work must contain – among others – the following :

   i. certificates evidencing that the members of the construction Joint Venture have not been declared bankrupt, put under liquidation, under stopping of their activities, compulsory administration or bankruptcy compromise. In case of an enterprise with registered office abroad, certificates are needed evidencing that it has not been put under any similar status deriving out of any similar procedure provided for by the Legislation of the State, where its registered office is located.

  ii. certificates evidencing that no procedure has been instigated against any member of the Joint Venture seeking its declaration into bankruptcy, its liquidation, its compulsory administration or a bankruptcy compromise or, in case of an enterprise with registered office abroad, that no similar procedure  provided for by the Legislation of the State, where its registered office is located, has been instigated against it.    

 iii. certificates evidencing that the persons referred to below have not been condemned by means of an irrevocable judgment for an illegal act regarding their professional behaviour. The certificates in question must have been issued by the competent Public Prosecutor or by the corresponding Public Authority in case of enterprises with registered office abroad, which are not registered with M.E.E.Π.. Said certificates concern the following persons:   

   - in case of a personal undertaking, the person to whom same belongs.

  - in case of a personal company, its Partners having unlimited liability for the obligations of the company.

  - in case of a limited liability company, its administrator(s).

  - in case of a société anonyme, those Members of its Board of Directors the signature of whom is required to bind the company according to its Articles if Incorporation and

  - in case of a  construction Joint Venture, its representative and his deputy.

  iv. certificates evidencing that the persons mentioned in the precedent paragraph have not committed a professional mistake.

  v. certificates evidencing that the members of the construction Joint Venture have fulfilled their obligations vis – à – vis the Social Security Fund.

  vi. certificates of the competent Fiscal Authorities showing that the members of the Joint Venture have fulfilled their fiscal obligations.   

IV. CONSULTANT CONTRACTS

1. A distinction has to be done between public consultancy contracts and private consultancy contracts.

Public consultancy contracts and more particularly public contracts for granting of services, have been dealt with in paragraph 3 of Chapter II hereinabove of the present report. 

Private consultancy contracts are concluded between a client and a consultant (architect, engineer, surveyor, economist, project manager etc…) regarding the granting by the consultant of services connected to the achievement of a work – either private or public – awarded to or entrusted with the client (contractor).  

The services being the object of the contract can be engineering services, architecture services, survey services, technical services in general, administration, management, marketing, sales promotion, communication, commercial, accounting services, services of project management, supervision, coordination of sub contractors, suppliers etc…and other similar services regarding the execution of the project for which the contractor needs  specialized staff.

The contracts, which the contractor can conclude to the above ends, are of two kinds.

 Actually, the same tasks or services can be either the object of an employment agreement or of a contract for work. The main characteristic of a contract for work is that the second contracting party has not vis – à – vis the other the same obligations as those which an employee has vis – à – vis his employer.

An employment agreement is governed by the dispositions of Greek Labour Law and additionally – in case a specific issue is not regulated by Labour Law – by application of the relevant dispositions of the Greek Civil Code contained in chapter XIIX under the title «HIRE OF WORK» including articles 648 to 680.

By application of the dispositions of article 648, in a contract for the hire of work the employee undertakes to furnish his work to the employer during a fixed or an undetermined period of time, while the employer undertakes to pay to the employee the agreed salary.

A contract for work is governed by the dispositions contained in chapter XIX of the Greek Civil Code under the title "CONTRACT FOR WORK" including articles from 681 to 708.

According to article 681, by a contract for work a contractor undertakes the obligation to achieve a piece of work, while the master of the work undertakes to pay the agreed remuneration. The term "contractor" is used here not in the sense of a physical person or a legal entity to which a private or public work has been entrusted / awarded, but in the sense of a freelancer who undertakes the obligation to achieve a piece of work (which can consist of the provision of services) to a contractor to whom a private or a public work has been entrusted / awarded.

2. To illustrate the difference between the two above kind of contracts, but also to demonstrate that the same tasks, duties, services etc.. can be the object of either a contract for hiring of work or of a contract for work, we shall give the following example :

 A private or a public construction work has been awarded to a contractor company or to a joint venture. To perform the work, the contractor company or the joint venture needs obviously personnel, among which engineers, architects, surveyors etc…

a. The company or the joint venture may hire such personnel by entering with the concerned persons in labour agreements, which as stated above will be governed by the dispositions of Labour Legislation and those of Chapter XIIX of the Greek Civil Code, if needed.

In such a case, the engineer, the architect, the surveyor etc…are employees. They have the obligation to respect the working hours of the enterprise of the employer, usually they have to work eight (8) hours per day, five (5) days per week on site or in the offices of the employer, they are entitled to a salary, which is usually a monthly one, during one calendar year they receive in fact fourteen (14) salaries since employees are entitled to a Christmas bonus equal to one (1) month’s salary, to an Easter bonus equal to half a month salary, to a summer holidays bonus equal to half a monthly salary and they are also entitled to one (1) month paid summer leave.

By application of the first paragraph of article 652, the employee is bound to perform carefully the work, which he has undertaken. He is liable for any damage(s) caused to the employer through fraud or negligence. By saying ‘’negligence’’, the Law means any negligence, even slight.   

Yet, by application of the second paragraph of the above article, the degree of the care for which the employee is liable shall be appreciated by reference to the contract taking into consideration the employee’s education or the special knowledge required to carry out his work, as well as the capacities and qualities of the employee of which the employer had or ought to have knowledge.

By application of article 679, an agreement restricting the employee’s rights is in general null and void if it was concluded before the relevant right(s) are generated.

Vis – à – vis third parties, the employer is responsible for any damages caused by his employees, against whom he may turn to collect from them any amount which he has been possibly obliged to pay to third parties having suffered damages by fault of the employee(s).  

    b. The company or the joint venture may enter into an agreement with a freelancer for the granting of the same services as above.

The main difference between the two “formulas” exposed hereinabove under (a) and (b) is that the consultant, who is not an employee in case of a contract for work but a freelancer, has not the obligation to be present during a fixed number of hours on the site of the project or in the offices of the contractor, he is free to prepare in his own office the documents (drawings, plans etc..), which he has possibly to draw up and his remuneration for the achievement of the piece of work, which  he has undertaken to achieve, is not fixed on a monthly basis but to a lump sum, on account of which he will usually receive various sums during the course of the execution of the work.

By application of article 1 of L. 2639/1998, copy of any agreement for work regarding the granting of services by a freelancer has to be submitted within fifteen (15) days as of its signature to the competent Labour Office to allow it to check whether the agreement in question is actually a contract for work and that it does not ‘’hide’’ an employment agreement. In case of non timely submission of the contract as above, it is assumed to be an employment agreement. This assumption can be reversed by means of adverse evidence. The obligation to submit the contract to the Labour Office is set forth by the Law so as abuses from the client’s side be avoided.

In case of a contract for work, the consultant is not entitled to the bonuses to which an employee is entitled, he is not entitled to overtime pay in case he has to work more than expected since what is taken into account is not the time devoted but the achievement of the agreed work and, in general, he is not entitled to the advantages granted by the Labour Legislation to employees.

The consultant is responsible vis – à – vis the client / customer /  contractor for any fault due even to slight negligence of his.  Responsibility for slight negligence can be excluded by virtue of an agreement of both concerned parties by application of article 332 of the Greek Civil Code.   

In case of non – substantial deficiencies in the work, the client may  claim – by application of article 688 - either repair of same within a reasonable period of time provided the repair does not entail disproportional expenses or a proportional reduction of the price (i.e. the remuneration of the consultant).

In case of substantial deficiencies having as a result that the work cannot be used or if agreed specifications of it are missing, the client is entitled, instead of exercising the above rights provided for by article 688, to withdraw  from the contract by application of article 689.

In case of withdraw from the contract or reduction of the agreed remuneration, articles 541, 546, 547, 548, 549, 551, 552 and 553 of the Greek Civil Code, which apply to contracts of sale, are applicable also to contracts for work.  

According to article 690, in case of deficiencies or missing agreed specifications due to fault of the consultant, the client may - instead of reduction of the fee or withdrawal from the contract  - claim for damages.

Claims arising by reason of deficiencies in the work are prescribed by limitation ten (10) years after the date of delivery in the case of buildings or other immovable and two (2) years in the other cases, i.e. when the piece of work being the object of the contract for work is a movable or services of any kind.  

3. It accrues out of the above that engineers, architects, surveyors and other consultants etc.. can be appointed by the client in one of the two ways described hereinabove, i.e. by the conclusion with the client of either an employment agreement or of a contract for work.

However, the granting to the client of services by engineers, architects, surveyors and other technicians or consultants in general is very frequently the object of an agreement which is based on the FIDIC agreement for the granting of consultancy services to customer - Second Edition, 1991.

As a matter of fact, such kind of agreement is very short and mentions, mainly, that the words or expressions contained in it have the same meaning attributed to them in the frame of the conditions of the FIDIC Agreement, Second Edition, 1991, regarding the granting of consultancy services.

Further, this kind of agreement stipulates expressly that FIDIC, part A – usual terms, FIDIC, part B – terms of special application, as well as Annex               A – Field of Services, Annex B – personnel, equipment, installations and services of third persons and Annex C – remuneration and payment constitute integral part of the agreement.

Regarding the payment by the client of the fee of the consultant, it is usually agreed that it will be paid by instalments depending on the progress of the services.

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 Needless to say that all the matters dealt with within the frame of this report are extremely complicated. Consequently, the present report could not be anything else but a summary of the main dispositions of Greek Legislation governing them. In case someone is interested in any particular issue, same should be examined more in detail.

                                                                 Athens, November 3, 2005

                                                                               Catherine Cotsaki.