MINISTRY OF LAND, INFRASTRUCTURE, TRANSPORT AND TOURISM/THIRD PARTY PARTICIPATION IN CONSTRUCTION CONTRACT CHANGES IS DIRECTLY SUPERVISED, REVIEWING STANDARDS FOR PROMULGATION AND SELECTING TARGETS FOR THE FISCAL YEAR MAIN 2025

MINISTRY OF LAND, INFRASTRUCTURE, TRANSPORT AND TOURISM/THIRD PARTY PARTICIPATION IN CONSTRUCTION CONTRACT CHANGES IS DIRECTLY SUPERVISED, REVIEWING STANDARDS FOR PROMULGATION AND SELECTING TARGETS FOR THE FISCAL YEAR MAIN 2025

    The Ministry of Land, Infrastructure, Transport and Tourism has begun considering introducing a new system to seek opinions from third parties other than the ordering party before changing contracts, to ensure Ensure transparency in design and procedures for changing construction contracts under the direct control of the Ministry. . The plan will be finalized in the future and there will be a certain amount of time for thorough dissemination of information to both workplace participants, including order takers, and the plan will be introduced as early as fiscal year 2025. Based on the assumption that it is unlikely to realistically cover all construction projects, it is expected that criteria will be established for construction projects requiring seek public opinion. The detailed details will be finalized after sorting out various operational issues, such as the impact of third-party involvement on the ongoing construction process.

    Minister of Land, Infrastructure, Transport and Tourism Tetsuo Saito announced this at the Land, Infrastructure, Transport and Tourism Committee of the House of Representatives on the 24th. This was revealed revealed in response to Constitutional Democratic Party lawmaker Takashi Joi pointing out that regulations for increasing both overall project costs and contract amounts for individual works need to be reviewed.

    There is a mechanism to reassess the total project cost every five years and, after listening to the opinions of the provinces and other parties, a project evaluation monitoring committee composed of academic experts will evaluate appropriateness of increasing project costs. On the other hand, contract changes for each project will be decided through consultation between contractor and contractor. In response, Mr. Hiroi requested, ``It is necessary to create a system to check (the authenticity of price increases) from a different perspective than the orderer and the contractor.''

    Starting this month, the Ministry of Land Land, Infrastructure, Transport and Tourism have in principle published details of contract changes for individual construction works in regional development offices and other sites on the Internet . Minister of Land, Infrastructure, Transport and Tourism Saito expressed his intention to further enhance the transparency of contract changes, saying that he would ``consider specific measures '', including hearing from third parties.

    When making changes to an existing contract, we organize a ``Design Change Review Committee'' where the ordering parties gather to conduct discussions as necessary. For example, at the Kanto Development Bureau, out of 334 road and river construction projects that were contracted and completed in fiscal year 2021 and 252 projects were subject to increased fees, 132 projects, or about 50 %, organized events.

    In principle, a review committee is organized for all construction works, upon the proposal of one of the contractors, and a review committee is organized when there are important changes in structure and methods. construction as well as the addition of new job types. It is currently unclear how the mechanism relating to third parties will be integrated into the existing framework.

    Consideration must also be given to ensuring that third party involvement does not cause delays in ongoing construction work. It is expected that a large number of contract changes will be made across the country and it is likely to see what type of experts are willing to listen to ideas.

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