This report examines a method to evaluate the profitability and productivity of construction companies. A review of the European and Greek Construction Sector is made, followed by an industry analysis that is based on the application of standard financial and statistical methods and techniques aiming to identify the correlation between the change in profitability and the changes in the financial accounts and ratios of the companies. The major factors affecting profitability and productivity are identified resulting in the conclusion that the Greek construction industry exhibits certain unique characteristics - as well as impressively higher profitability- as compared to other sectors of the economy.