The construction sector is one of the key economic sectors of most modern countries. Construction industry enables the development of business and residential infrastructure and thus provides citizens with the prerequisites for housing and business. The construction sector usually occupies a large share in the total number of employees and a large share in the total GDP. However, this branch of the economy is often sensitive to changes in business cycles. On 1/1/2023 Republic of Croatia officially joined the Eurozone. Just before the accession, the world economy faced several unpredictable events that affected the increase in risk in the construction sector. The challenges faced by the domestic construction sector include workforce problems, the covid-19 pandemic, earthquakes on the territory of the Republic of Croatia, the rise in energy and material prices, and the restrictive monetary policy of the European Central Bank. The aim of this paper is to explain the essential features of the construction industry, to explain the specifics of the construction sector in the Republic of Croatia and to analyse the challenges it faced in the mentioned period. Also, the aim of this paper is to analyse the performance of the company Dalekovod d.d. in the period immediately before the entry of the Republic of Croatia into the Eurozone and to explain the way in which business challenges affected the company's operations. The expected professional contribution of the work includes research on the effects of the pandemic, earthquakes, inflation, energy crisis and other emerging challenges on the Croatian construction sector and the company Dalekovod d.d. Also, the contribution of the work includes research on the stability of the domestic construction sector in the time leading up to the entry of the Republic of Croatia into the Eurozone.