Minister of Land, Infrastructure, Transport and Tourism Tetsuo Saito attended the Economic and Financial Policy Council (chaired by Prime Minister Fumio Kishida) held at the Prime Minister's Office on May 29. 2 and explains how to overcome price increases to realize wage increases that will help secure human resources for the construction industry. Both main contractors and subcontractors in the construction industry are unable to pass on rising material and labor costs into their prices, which calls for a solution to the current situation where management is under pressure. force.
Minister of Land, Infrastructure, Transport and Tourism Saito
At the conference, attendees shared the problem that while companies are highly motivated to invest capital, this does not result in actual capital investment. Among them, it is pointed out that the growing labor shortage in the construction industry and other industries is a cause.
In response, Minister of Land, Infrastructure, Transport and Tourism Saito said: “I heard that there are more and more cases of construction orders being postponed for the time being because it is not possible to place construction orders. built within the expected budget. business plan due to rising raw material prices.” explain. The Ministry of Land, Infrastructure, Transport and Tourism is calling on customers to ensure that estimates are commensurate with the latest current prices, and is encouraging them to revise construction work to accommodate budget and set provisions for changes to respond to rising raw material prices.
Minister of Land, Infrastructure, Transport and Tourism Saito went on to point out that to further ensure on-site technicians support construction production, it is important to shift the increase in spending raw material costs and other costs throughout the supply chain. . The Construction Business Act amendment bill, expected to be tabled in the current session of Parliament, would introduce rules specifying in contracts how prices should be changed to respond to increases price and ensure capital to transfer price through. contract changes. He explained that it is necessary to first ensure a suitable amount of material and labor costs in the contract between the customer and the main contractor, and then divide the capital between subcontractors.
At the end of the meeting, Prime Minister Kishida directed Minister of Land, Infrastructure, Transport and Tourism Saito and others to examine factors limiting investment in areas under their jurisdiction. and take actions based on that.
