A fact-finding survey on construction and operation in 2024 has begun based on the implementation guidelines of the Public Works Bidding Contract Allocation Act (Contract Formation Act) and the Public Works Quality Assurance Promotion Act (Public Works Quality Assurance Act). In the “contract investigation” for construction work conducted by the three ministries of Land, Infrastructure, Transport and Tourism, and Finance and General, new contents to be investigated include how to take extremely hot days into account when determining the construction period, whether there is a contract provision for changing the construction period or contract price in the contract, a sliding scale for application results, and other information. The Ministry of Land, Infrastructure, Transport and Tourism’s “Operation Guidance Investigation” will also examine whether there is any provision in the contract for changing the implementation period or commission fee.
Survey forms were sent to a total of 1,928 organizations, including national ministries, special corporations, and local governments on the 19th. We asked them to respond by mid-September on the status of their responses as of July 1 (some items are based on FY 2013 results). After tabulation, the results will be announced in December.
The contract survey investigated responses based on the "Standards for the Construction Phase" revised by the Central Construction Industry Council (Chukensho) in March. When considering downtime due to extremely hot days, check whether the method is the same as the method directly administered by the Ministry of Land, Infrastructure, Transport and Tourism, or whether it is the original method. Another new item to check is whether the construction contract includes provisions for changes in construction time and contract price in a manner similar to the standard terms and conditions of public works contracts. To further understand the actual operation of the slippage clause, we will also hear about the status of contractors' consultation requests and the results of the owner's response after consultation.
Because we believe that appropriate change contracts are as important in business as they are in construction, we investigated whether contractor consultation provisions are applied in the same way as standard contract terms and conditions for public civil engineering design work, etc. We will also understand efforts to simplify documentation and the status of information sharing system (ASP) implementation from the perspective of improving operational efficiency in both construction and business operations.
In June, the revised Product Guarantee Act and the accompanying revised Contract Entry Law were enacted by members of the National Assembly and implemented as law, and the role of contract inspection will continue to increase. The revised Contract Entry Law grants the central government the power to “recommend, advise, and assist” local governments in implementing measures under the relevant Contract Entry Law Guidelines. To date, the government’s efforts have been limited to “requests,” but the revised law clarifies that the status of responses after a request can be determined individually through contract surveys and recommendations can be made if necessary.
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