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The Germans have what I believe to be a Construction Division.

Can it actually build something? Or does it fight like all the other divisions?

"Feldausbildung" refers to and translates roughly into "Training in the field". It is not a construction unit but was often posted in rear areas. Its main duties beside training was often anti-partisan and security activities. It is not impossible that they were also used to construct defenses, but so was every unit more or less.

IT's a normal unit as all the others in the game.