CONSTRUCTION-RELATED ORGANIZATIONS/LIBERAL DEMOCRATIC POLICY COUNCIL CLAIM PUBLIC WORKS COSTS EXCEED PREVIOUS YEAR'S SCALE

CONSTRUCTION-RELATED ORGANIZATIONS/LIBERAL DEMOCRATIC POLICY COUNCIL CLAIM PUBLIC WORKS COSTS EXCEED PREVIOUS YEAR'S SCALE

    At the "Policy Conference on Budget, Taxation, etc." related to construction organized by the Liberal Democratic Party on the 9th (led by Shigeki Kobayashi, Committee of groups related to land and national construction maintenance), construction-related organizations have proposed strengthening public works. -expenditures related to fiscal year 2024 exceed the prior year, I requested. In addition to increasing the amount to reflect soaring prices of equipment and materials and rising labor costs, the government also ordered the early development of a newly legislated “medium-term implementation plan” for recovery measures. country, as well as project costs higher than expected. current five-year acceleration measures. In the 2024 tax reform, they call for the abolition of stamp duty on contract contracts and tax exemption for on-site temporary offices.

    Among the organizations present at the meeting, the National Construction Industry Association (Zenken, chaired by Takanori Okumura) also requested greater allocation of public works-related costs to localities. To ensure reasonable profits for contractors, the Government also calls for raising the upper limit of the low bid survey benchmark price and the minimum limit price (92% of the expected price) and the overhead inclusion rate. and management costs (68%). ). To continue to increase salaries for technicians, it is necessary to increase construction site management costs and general management costs in the unit cost of public works design labor and estimated norms.

    The Japan Federation of Construction Contractors (Nikkenren, chaired by Yoichi Miyamoto) is demanding a significant increase in the fiscal year 2024 budget, which would be devoted to measures to build national resilience and address aging infrastructure. It also calls for budget measures that take account of preventing a downturn in private construction investment, such as urban development, due to rising costs. In addition to improving the highway network and renovating old sections, the Government also calls for ensuring financial resources to invest in developing construction-related technology.

    Zenken and Nikkenren both emphasized that they have enough construction capacity to carry out public works projects. On the other hand, with regard to the additional point measures for companies to increase wages in public procurement in countries applying the comprehensive assessment method, starting from fiscal year 2017, the continued increase Annual salaries aimed at winning orders are a burden on management. for construction and other services. They all point to the need for reconsideration.

    The following organizations made demands at the meeting:

    ▽Zenken▽Nikkenren▽National Small and Medium Construction Industry Association▽Japan Road Construction Industry Association▽National Construction Industry Federation▽Japan Bridge Construction Association▽Construction Industry Association Prestressed Concrete Construction▽National Federation of Surveying and Engineering Industries▽National Geology Federation of Surveying Industry Associations, National Federation of Ready Concrete Industry Associations, Excavator Council National Outlying Islands, National Federation of Flood Control and Preparedness Associations, Construction Consultants Association, National Council of Road Improvement Promotion Associations and National Construction Industry Federation Cooperative.

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