MLIT and MIC request municipalities to comply with new bidding cost breakdown rules under revised Construction Business Act and Public Works Procurement Act
Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) and the Ministry of Internal Affairs and Communications (MIC) have issued a notice to local governments on the handling of cost breakdown sheets in public works bidding. This measure prepares municipalities for the full enforcement of revisions to the Construction Business Act and the Public Works Procurement Appropriateness Act on 12 December 2025.
Under the revised laws, contractors are required to submit detailed cost breakdown sheets specifying labor costs and necessary expenses, while public procurers are obligated to verify the content of these documents. To assist implementation, MLIT and MIC provided sample templates for civil engineering and building works.
The notice, sent on 18 November, asks prefectures to further disseminate the information to municipalities.
Mandatory cost items to appear in the breakdown sheet:
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Statutory welfare expenses (employer’s contribution)
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Safety and health-related expenses
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Contributions to the Construction Industry Retirement Mutual Aid system
Simplified templates are also provided for small-scale procurers. Municipalities may update existing forms by adding required cost fields in the margins or via supplementary sheets, as long as mandatory items are clearly stated.
