NCC's operations require a considerable amount of delegated responsibility. Procedures have been formulated within the Group in order to clarify exactly who is to do what in each stage of the decision-making process. In addition to strategic and organizational matters, the areas regulated explicitly include investments and divestments, rental and leasing agreements, financing, sureties, guarantees, the assessment of tenders and business agreements.
The number of projects in production varies from year to year but totals several thousands. The organization of each project varies according to the specific project's size and complexity. Each project is led by a project manager who is responsible for product format, purchases, financial aspects, production, quality, completion and handover to the customer.
Major projects are monitored on a monthly basis by the CEO and the Finance Director. Tenders for projects exceeding SEK 300 M are subject to special assessment and must be approved by the CEO. Tenders for projects exceeding SEK 500 M must be authorized by NCC AB's Board. Proprietary housing and property-development projects representing an investment exceeding SEK 10 M must be approved by the CEO and such projects exceeding SEK 100 M must be authorized by NCC AB's Board.
GOVERNANCE OF BUSINESS AREAS
The Group comprises business areas that constitute separate subsidiaries managed by presidents. Each business area has a Board of Directors. For certain decisions, the approval of the CEO or NCC AB's Board Chairman or Board of Directors is required. The decision-making procedure consists of proposals, endorsement, decisions and confirmation. A matter requiring a decision is normally processed by the entity that initiated the matter or which is responsible for it in terms of function. Many types of decisions are preceded by consultation.