01. July 2011


Summary of the company's history
IAV / IPC is one of Iceland's oldest construction companies originally established as a sole-source military construction contractor in 1954.

In 1997 the company was reorganized into a limited liability company and subsequently listed on the Iceland Stock Exchange where it is still the only listed construction company. With acquisitions and internal growth it is now one of two biggest construction companies in Iceland. It is very actively participating in every sphere of the construction industry such as residential housing, commercial buildings, official buildings and other special buildings, earthmoving, airfield and road construction as well as hydro-electric power projects and such complicated projects as radar stations on mountain tops in remote areas.

Technical Advances and Staff Training
At the time that IAV / IPC commenced operations, the equipment and expert knowledge required to carry out defense construction projects was not readily available in Iceland, other than to the Americans and their own contractors. When IAV / IPC took over the contracting for the US Naval Air Station marked an important stage in the industrial history of Iceland and became a substantial educational tool in the construction industry sector. Various machines and tools were imported which had not been previously seen in the Icelandic construction industry; these were soon used in various construction projects all over the country.

IAV / IPC and their predecessors, United Contractors, supported the diversification of construction workers by sending employees to training seminars in the USA, as well as providing specialised training for particular projects locally. In this way, IAV / IPC had a considerable effect on the development of the Icelandic construction industry. This was done with the support of the Icelandic government, not to mention the Americans, who naturally wanted to ensure that the transfer of knowledge continued in line with the demands of the complex projects which the company carried out as contractor to the US Naval Air Station.

Structural Changes
From 1990 onwards, it became clear that there was growing support for a change in the arrangement concerning contractors in Iceland As an increasing number of defense projects were being financed by the NATO Building Fund, NATO member states were in favour of competitive bidding. In 1992, the Icelandic government agreed that the competitive bidding for NATO projects would be open to companies from all NATO countries.

Since 1996 the system in which the Icelandic government nominated contractors to negotiate for projects on the NATO Base has been reduced by stages with the aim to finally reach and support open bidding from any and all contractors.

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Construction in Keflavík is in full swing
24. June 2021

Construction in Keflavík is in full swing

The design phase in Keflavik which began in the middle of September 2020 has now been completed. The permission to commence is expected within the next few weeks. ÍAV received early permission to carry out the earthworks of the apron to ensure that the concrete paving could commence as early in the summer as possible. ÍAV has dug and removed 120.000 cubic metres of soil and rock and imported 100.000 cubic metres of crushed aggregates since March 9th, 2021.

Sky Lagoon handed over
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Sky Lagoon handed over

ÍAV has handed over the Sky Lagoon project to their client Nature Resort ehf. Sky Lagoon was open to the public on May 1, 2021. Sky Lagoon website is

Móavegur 2-12, Progress Report
30. November 2018

Móavegur 2-12, Progress Report

Since contract signing on Feb 16, 2018, a continuous progress is claimed by ÍAV and sub trades on Móavegur 2-12 project site in Reykjavík. The project is to deliver in a turn-key manner a 155-apartment affordable rental-housing complex entailing six 3-4 storey buildings with a shared underground carpark, with anticipated project completion in June of 2020. The Client Bjarg is a non-profit organization formed by two of Iceland’s largest confederations of labour, ASÍ and BSRB.

Project status on Burfell Power Plant expansion.
14. June 2018

Project status on Burfell Power Plant expansion.

Now about 85% of all construction has been completed on the Burfell power plant expansion. All water chanels have been concluded. The entrance chanel was completed late April and the sewerage chanel was completed in beginning of May.