Quality and technical defects in completed construction work
First written in FY2016. 16 of 24 entries say "Restated". Latest entry: FY2026.
Sonec moved to the "Worse" side of this theme in 2020, 1 year before the typical company in this theme (2021).
The whole theme swung hardest in 2026: 2 of 10 companies on the "Worse" side.
1 other company's latest entry also says "Reframed".
- FY2026ReframedAnnual report
「If serious quality or technical defects arise during the design or construction stages of completed work, causing a major accident involving people or the construction work, and resulting in substantial damages liability under contract nonconformity or product-liability laws, this may affect the operating results and corporate reputation of the Group.」
It has updated the legal terminology from the former "warranty-against-defects liability" to "contract nonconformity liability." The risk itself of quality and technical defects leading to damages claims and other consequences continues. - FY2026-H1RestatedAnnual report
「No new business or other risks arose during the interim consolidated accounting period. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
It states that there have been no new developments or material changes in the risk of quality and technical defects in completed construction work. - FY2025MitigatedAnnual report
「As no litigation losses are expected to arise during the current consolidated fiscal year, no provision for litigation losses has been recorded.」
It discloses that no provision for litigation losses related to defects in completed construction work was recorded for the current fiscal year. - FY2025-H1WorsenedAnnual report
「This lawsuit was brought by East Nippon Expressway Company Limited, which demanded payment of damages based on warranty-against-defects provisions for cracks in translucent sound-insulating panels installed as part of a sound barrier project ordered from the Company.」
The warranty-against-defects lawsuit concerning cracks in the translucent sound-insulating panels is on appeal, and the provision for litigation losses has increased to ¥102,992,863 in preparation for final judgment. - FY2024MaterialisedAnnual report
「On 16 February 2024, the Tokyo District Court issued a judgment ordering the Company to pay East Nippon Expressway Company Limited ¥82,282,490 in damages plus delinquency damages.」
A first-instance judgment was issued in the warranty-against-defects lawsuit concerning cracks in the translucent sound-insulating panels installed as part of the sound barrier project, ordering payment of ¥82,282,490 in damages and other amounts. The Company filed an appeal on 2 March 2024. - FY2024-Q3RestatedAnnual report
「The Company was sued by East Nippon Expressway Company Limited on 31 October 2019 (the complaint was served on 23 November 2019) for ¥205,548,953 in damages plus delinquency damages. Subsequently, on 11 May 2022, a motion to amend the claim was filed seeking ¥310,589,198 in damages plus delinquency damages.」
It continues to disclose the warranty-against-defects lawsuit concerning cracks in the translucent sound-insulating panels installed as part of the sound barrier project and the change in the claimed amount to ¥310,589,198. - FY2024-Q2RestatedAnnual report
「This lawsuit was brought by East Nippon Expressway Company Limited, which demanded payment of damages based on warranty-against-defects provisions for cracks in translucent sound-insulating panels installed as part of a sound barrier project ordered from the Company.」
It continues to disclose the warranty-against-defects lawsuit concerning cracks in the translucent sound-insulating panels installed as part of the sound barrier project. The claimed amount remains ¥310,589,198 plus delinquency damages. - FY2023RestatedAnnual report
「The Group is working to minimize these risks by strengthening quality control and its internal inspection system for construction work and further improving construction skills through enhanced employee training.」
It continues measures to reduce the risk of defects in completed construction work through quality control, internal inspections and employee training. - FY2023-Q3RestatedAnnual report
「The Company was sued by East Nippon Expressway Company Limited on 31 October 2019 (the complaint was served on 23 November 2019) for ¥205,548,953 in damages plus delinquency damages. Subsequently, on 11 May 2022, a motion to amend the claim was filed seeking ¥310,589,198 in damages plus delinquency damages.」
It continues to disclose the warranty-against-defects lawsuit concerning cracks in the translucent sound-insulating panels installed as part of the sound barrier project and the change in the claimed amount to ¥310,589,198. - FY2023-Q1RestatedAnnual report
「No new business or other risks arose during the 1st quarter cumulative period. There were also no material changes to the risks described in the securities report for the previous fiscal year.」
It states that there have been no new developments or material changes in the risk of quality and technical defects in completed construction work. - FY2022WorsenedAnnual report
「Subsequently, on 11 May 2022, a motion to amend the claim was filed seeking ¥310,589,198 in damages plus delinquency damages.」
In the warranty-against-defects lawsuit concerning cracks in the translucent sound-insulating panels installed as part of the sound barrier project, the amount claimed changed from the previous ¥245,831,896 to ¥310,589,198. - FY2022-Q1RestatedAnnual report
「This lawsuit was brought by East Nippon Expressway Company Limited, which demanded payment of damages based on warranty-against-defects provisions for cracks in translucent sound-insulating panels installed as part of a sound barrier project ordered from the Company.」
It continues to disclose the warranty-against-defects lawsuit seeking damages for cracks in translucent sound-insulating panels installed as part of the sound barrier project. - FY2021-Q3WorsenedAnnual report
「The Company was sued by East Nippon Expressway Company Limited on 31 October 2019 (the complaint was served on 23 November 2019) for ¥205,548,953 in damages plus delinquency damages. Subsequently, on 21 January 2021, a motion to amend the claim was filed seeking ¥245,831,896 in damages plus delinquency damages.」
The amount claimed for damages relating to cracks in the translucent sound-insulating panels installed as part of the sound barrier project changed from ¥205,548,953 to ¥245,831,896. - FY2020-Q3MaterialisedAnnual report
「This lawsuit was brought by East Nippon Expressway Company Limited, which demanded payment of damages based on warranty-against-defects provisions for cracks in translucent sound-insulating panels installed as part of a sound barrier project ordered from the Company.」
A lawsuit arose in which the ordering party sought damages under warranty-against-defects provisions for cracks in translucent sound-insulating panels installed as part of a sound barrier project. - FY2020-Q2RestatedAnnual report
「No new business or other risks arose during the 2nd quarter cumulative period. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
It states that there have been no new developments or material changes in the risks of major accidents or damages claims arising from quality and technical defects in completed construction work. - FY2020-Q1RestatedAnnual report
「No new business or other risks arose during the 1st quarter cumulative period. There were also no material changes to the risks described in the securities report for the previous fiscal year.」
It states that there have been no new developments or material changes in the risks of major accidents or damages claims arising from quality and technical defects in completed construction work. - FY2019RestatedAnnual report
「If serious quality or technical defects arise during the design or construction stages of completed work, causing a major accident involving people or the construction work, and resulting in substantial damages liability under warranty-against-defects or product-liability laws, this may affect the operating results and corporate reputation of the Group.」
The risk of major accidents, damages claims and an impact on corporate reputation due to quality and technical defects in completed construction work continues. - FY2019-Q3RestatedAnnual report
「During the cumulative third quarter of the fiscal year under review, there were no newly arising business or other risks. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
It states that there have been no new developments or material changes in the risk of quality and technical defects in completed construction work. - FY2018RestatedAnnual report
「If serious quality or technical defects arise during the design or construction stages of completed work, causing a major accident involving people or the construction work, and resulting in substantial damages liability under warranty-against-defects or product-liability laws, this may affect the operating results and corporate reputation of the Group.」
The risk of major accidents, damages claims and an impact on corporate reputation due to quality and technical defects in completed construction work continues. - FY2018-Q3RestatedAnnual report
「During the cumulative third quarter of the fiscal year under review, there were no newly arising business or other risks. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
It states that there have been no new developments or material changes in the risk of quality and technical defects in completed construction work. - FY2018-Q2RestatedAnnual report
「No new business or other risks arose during the 2nd quarter cumulative period. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
It states that there have been no new developments or material changes in the risk of quality and technical defects in completed construction work. - FY2018-Q1RestatedAnnual report
「No new business or other risks arose during the 1st quarter cumulative period. There were also no material changes to the risks described in the securities report for the previous fiscal year.」
It states that there have been no new developments or material changes in the risk of quality and technical defects in completed construction work. - FY2017RestatedAnnual report
「If serious quality or technical defects arise during the design or construction stages of completed work, causing a major accident involving people or the construction work, and resulting in substantial damages liability under warranty-against-defects or product-liability laws, this may affect the operating results and corporate reputation of the Group.」
The risk of major accidents, damages claims and an impact on corporate reputation due to quality and technical defects in completed construction work continues. - FY2016First statedAnnual report
「If serious quality or technical defects arise during the design or construction stages of completed work, causing a major accident involving people or the construction work, and resulting in substantial damages liability under warranty-against-defects or product-liability laws, this may affect the operating results and corporate reputation of the Group.」
It identifies the possibility that quality and technical defects may lead to major accidents, damages claims and an impact on corporate reputation.