Major defects in completed construction and liability for defects
First written in FY2016. 10 of 16 entries say "Restated". Latest entry: FY2022.
Nankai Tatsumura Construction moved to the "Worse" side of this theme in 2017.
The whole theme swung hardest in 2026: 1 of 7 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2022MitigatedAnnual report
「As a defect had occurred in a completed project from a prior fiscal year, involving one mid-rise building, the estimated repair cost was reasonably calculated according to the condition of the defect and ¥1,389 million was recorded as a provision for completed construction warranties. Following negotiations with the customer regarding compensation for the defect in this building, the company agreed to bear ¥2,000 million as a settlement payment.」
The compensation negotiations with the customer regarding the defect in the completed project from a prior fiscal year reached an agreement, and the matter was settled through the payment of ¥2,000 million. The difficulty of estimating additional compensation, which had been disclosed through the previous fiscal year, was resolved by the agreement. - FY2022-Q3RestatedAnnual report
「As a defect was identified in a completed project from a prior fiscal year, involving one mid-rise building, the estimated repair cost was reasonably calculated according to the condition of the defect and recorded as a provision for completed construction warranties. The customer may seek additional compensation in connection with the defect, but as it is currently difficult to reasonably estimate the amount to be borne by the company, that amount may change depending on the progress of negotiations and other developments.」
It continues the previous explanation regarding the defect in a completed project from a prior fiscal year, the recording of a provision for completed construction warranties, and the difficulty of estimating any additional compensation. - FY2022-Q1RestatedAnnual report
「As a defect was identified in a completed project from a prior fiscal year, involving one mid-rise building, the estimated repair cost was reasonably calculated according to the condition of the defect and recorded as a provision for completed construction warranties. The customer may seek additional compensation in connection with the defect, but as it is currently difficult to reasonably estimate the amount to be borne by the company, that amount may change depending on the progress of negotiations and other developments.」
It continues the previous explanation regarding the defect in a completed project from a prior fiscal year, the recording of a provision for completed construction warranties, and the difficulty of estimating any additional compensation. - FY2021-Q3RestatedAnnual report
「As a defect was identified in a completed project from a prior fiscal year, involving one mid-rise building, the estimated repair cost was reasonably calculated according to the condition of the defect and recorded as a provision for completed construction warranties. The customer may seek additional compensation in connection with the defect, but as it is currently difficult to reasonably estimate the amount to be borne by the company, that amount may change depending on the progress of negotiations and other developments.」
It continues the previous explanation regarding the defect in a completed project from a prior fiscal year, the recording of a provision for completed construction warranties, and the difficulty of estimating any additional compensation. - FY2020ReframedAnnual report
「Although we take every possible measure to ensure quality control in construction, if a major defect were to occur, we could lose the trust of our customers and incur damages resulting from liability for defects (liability for nonconformity to contract), which could affect the performance of our group.」
“Liability for nonconformity to contract” has been added alongside the previous reference to liability for defects, reorganizing the disclosure to include the legal terminology. - FY2020-Q3RestatedAnnual report
「As a defect was identified in a completed project from a prior fiscal year, involving one mid-rise building, the estimated repair cost was reasonably calculated according to the condition of the defect and recorded as a provision for completed construction warranties. The customer may seek additional compensation in connection with the defect, but as it is currently difficult to reasonably estimate the amount to be borne by the company, that amount may change depending on the progress of negotiations and other developments.」
It continues the previous explanation regarding the defect in a completed project from a prior fiscal year, the recording of a provision for completed construction warranties, and the difficulty of estimating any additional compensation. - FY2020-Q2RestatedAnnual report
「As a defect was identified in a completed project from a prior fiscal year, involving one mid-rise building, the estimated repair cost was reasonably calculated according to the condition of the defect and recorded as a provision for completed construction warranties. The customer may seek additional compensation in connection with the defect, but as it is currently difficult to reasonably estimate the amount to be borne by the company, that amount may change depending on the progress of negotiations and other developments.」
It continues the previous explanation regarding the defect in a completed project from a prior fiscal year, the recording of a provision for completed construction warranties, and the difficulty of estimating any additional compensation. - FY2020-Q1RestatedAnnual report
「As a defect was identified in a completed project from a prior fiscal year, involving one mid-rise building, the estimated repair cost was reasonably calculated according to the condition of the defect and recorded as a provision for completed construction warranties. The customer may seek additional compensation in connection with the defect, but as it is currently difficult to reasonably estimate the amount to be borne by the company, that amount may change depending on the progress of negotiations and other developments.」
It continues the previous explanation regarding the defect in a completed project from a prior fiscal year, the recording of a provision for completed construction warranties, and the difficulty of estimating any additional compensation. - FY2019-Q3RestatedAnnual report
「As a defect was identified in a completed project from a prior fiscal year, involving one mid-rise building, the estimated repair cost was reasonably calculated according to the condition of the defect and recorded as a provision for completed construction warranties. The customer may seek additional compensation in connection with the defect, but as it is currently difficult to reasonably estimate the amount to be borne by the company, that amount may change depending on the progress of negotiations and other developments.」
It continues the previous explanation regarding the defect in a completed project from a prior fiscal year, the recording of a provision for completed construction warranties, and the difficulty of estimating any additional compensation. - FY2019-Q2RestatedAnnual report
「As a defect was identified in a completed project from a prior fiscal year, involving one mid-rise building, the estimated repair cost was reasonably calculated according to the condition of the defect and recorded as a provision for completed construction warranties. The customer may seek additional compensation in connection with the defect, but as it is currently difficult to reasonably estimate the amount to be borne by the company, that amount may change depending on the progress of negotiations and other developments.」
It continues the previous explanation regarding the defect in a completed project from a prior fiscal year, the recording of a provision for completed construction warranties, and the difficulty of estimating any additional compensation. - FY2019-Q1RestatedAnnual report
「As a defect was identified in a completed project from a prior fiscal year, involving one mid-rise building, the estimated repair cost was reasonably calculated according to the condition of the defect and recorded as a provision for completed construction warranties. The customer may seek additional compensation in connection with the defect, but as it is currently difficult to reasonably estimate the amount to be borne by the company, that amount may change depending on the progress of negotiations and other developments.」
It continues to explain the defect in a completed project from a prior fiscal year, the recording of a provision for completed construction warranties, and the difficulty of reasonably estimating any additional compensation. - FY2018MaterialisedAnnual report
「As a defect was identified in a completed project from a prior fiscal year, involving one mid-rise building, the estimated repair cost was reasonably calculated according to the condition of the defect and recorded as a provision for completed construction warranties.」
A defect in a completed project from a prior fiscal year was actually identified, and ¥240 million was recorded as an expense for the provision for completed construction warranties. - FY2018-Q3MaterialisedAnnual report
「As a defect was identified in a completed project from a prior fiscal year, involving one mid-rise building, the estimated repair cost was reasonably calculated according to the condition of the defect and recorded as a provision for completed construction warranties. The customer may seek additional compensation in connection with the defect, but as it is currently difficult to reasonably estimate the amount to be borne by the company, that amount may change depending on the progress of negotiations and other developments.」
A defect in a completed project from a prior fiscal year was actually identified, and the estimated repair cost was recorded as a provision for completed construction warranties. It states that the amount of any additional compensation is currently difficult to estimate reasonably. - FY2018-Q2MaterialisedAnnual report
「Provision for completed construction warranties 240」
The company recorded ¥240 million as an extraordinary loss for the provision for completed construction warranties, recognizing costs related to defects and warranties for completed construction. - FY2017RestatedAnnual report
「Although we take every possible measure to ensure quality control in construction, if a major defect were to occur, we could lose the trust of our customers and incur damages resulting from liability for defects, which could affect the performance of our group.」
It repeats the same risk of loss of trust and claims for damages if a major defect occurs. - FY2016First statedAnnual report
「Although we take every possible measure to ensure quality control in construction, if a major defect were to occur, we could lose the trust of our customers and incur damages resulting from liability for defects, which could affect the performance of our group.」
While conducting quality control, it anticipates a loss of trust and claims for damages if a major defect occurs.