Negotiations on sharing additional costs for overseas construction projects and review of contracts and the negotiation framework
First written in FY2022-Q1. 2 of 5 entries say "Restated". Latest entry: FY2023-Q3.
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- FY2023-Q3RestatedAnnual report
「However, with respect to the “risk related to infectious diseases” described in the previous fiscal year’s annual securities report under “Management policy, business environment and issues to be addressed” and “Business and other risks,” the company is proceeding with negotiations with clients on the allocation of the additional costs related to the costs that have materialized」
Reiterates the response of proceeding with negotiations with clients on the allocation of the additional costs that have materialized on overseas construction projects. No new milestones, such as completion of the negotiations, are described. - FY2023-Q2RestatedAnnual report
「However, with respect to the “risk related to infectious diseases” described in the previous fiscal year’s annual securities report under “Management policy, business environment and issues to be addressed” and “Business and other risks,” the company is proceeding with negotiations with clients on sharing the additional costs related to the costs that have materialized」
Reiterates the policy of proceeding with negotiations with clients on sharing the additional costs that have materialized on overseas construction projects. No new milestones, such as the start or completion of negotiations, are described. - FY2022-Q3Added a review of material procurement methodsAnnual report
「However, the “risk related to infectious diseases” described in the previous fiscal year’s annual securities report under “Management policy, business environment and issues to be addressed” and “Business and other risks” has materialized overseas. This has resulted in site closures and activity restrictions due to the spread of COVID-19, extended construction periods due to shortages of labor and materials, and deterioration in construction profitability due to surging material prices and labor costs. Accordingly, the company will negotiate with clients and subcontractors on sharing additional costs arising from force majeure factors and take measures including reviewing material procurement methods and the negotiation framework.」
In addition to continuing negotiations on sharing additional costs, the company describes reviewing material procurement methods and the negotiation framework, as well as the terms of existing contracts, as response measures. - FY2022-Q2AdvancedAnnual report
「The impact of extended construction periods due to the spread of COVID-19 and increases in material and labor unit costs has been substantial overseas. Although the company recognized a provision for construction losses in the first quarter, including expected future losses, it has begun negotiations with clients and other parties on sharing additional costs and will work to improve performance going forward.」
States that, following the previous response policy, the company has begun negotiations with clients and other parties on sharing additional costs. The policy of reviewing contract terms and the negotiation framework remains in place. - FY2022-Q1First statedAnnual report
「Going forward, the company will negotiate with clients and other parties on sharing additional costs and work to improve performance. In addition to negotiating with clients and subcontractors on sharing additional costs arising from force majeure factors, the company will take measures including reviewing contract terms and the negotiation framework.」
Following the occurrence of additional costs and construction losses associated with COVID-19 on overseas construction projects, the company describes negotiations with clients and subcontractors on sharing costs and reviews of contract terms and the negotiation framework as new measures.