Construction is essentially the art and science of forming objects, buildings and infrastructure, and as such is important for everyday life and the economy. The construction sector has an important role in the Croatian economy, which is reflected in its share in the gross domestic product, the total employment of the population and the effect it has on other economic activities. In the 1990s, the Croatian construction industry was in the service of restoring severe material damage to construction and infrastructure facilities caused by the destruction during the Homeland war. The beginning of the 21st century brought an economic boom that encouraged investments in the construction sector. After the 2008 crisis, activities in the construction sector are again on an ascending trend until the end of 2019, i.e. the start of the Covid-19 pandemic. Although the predictions were much more pessimistic, the construction sector in Croatia did not suffer too heavy losses due to difficult working conditions in the construction industry as a result of the Covid-19 pandemic. In this challenging situation, it even more turned to new technologies, innovative construction methods and digitization to overcome the resulting limitations. The economic policy measures brought by Croatian government made possible for entrepreneurs to preserve jobs and mitigate the consequences of the Covid-19 pandemic were also of a great help. Growth in the tourism sector is one of the key factors behind the high demand for construction services. The rise in the prices of materials and labor, as well as the lack of qualified workers in construction, increase the ultimate value of the final product and represent a new challenge for the construction sector and whole Croatia.