It was created in 2014 after the Construction and Establishments Service was reorganized, due to the Defence Agreement 2013-17.

[2] The DDEO is also responsible for such things as property assessments, selling and buying property, legal consultation, preservations, energy, environmental issues.

[4] DDEO can trace its history back to 1684, when King Christian V setup three fortifications services for Denmark, Schleswig-Holstein and Norway.

In January 2007, due to the Defence agreement 2005-2009, significant changes took take place in DCS, which is to eventually evolve into Construction and Establishments Service/CES (Danish: Forsvarets Bygnings- og Etablissementstjeneste/FBE), by incorporating decentralized departments located in various military regiments, as well as the Defence Command's infrastructure department, for a more streamlined organization.

In December 2019, it was reported that there were violations of rules in 75 percent of the purchases related to the DDEO.