Risk of Large-Scale Projects Becoming Unprofitable
First written in FY2025-H1. 3 of 4 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2020: 6 of 10 companies on the "Worse" side.
2 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Accordingly, if deficiencies in contract terms or project management result in increased work hours or lower-quality deliverables, substantial deterioration in profitability, liability for damages to customers and opportunity losses may arise, potentially having a significant adverse effect on the Group’s results and business development.」
The Group reiterated the risk of large projects becoming unprofitable and described the PM Quality Assurance Center, Structural Quality Assurance Center and quality management from pre-order review through the final stage as countermeasures. - FY2026-H1RestatedAnnual report
「During the interim consolidated accounting period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」
The Group disclosed in aggregate that there had been no material change from the previous fiscal year in the risk of large projects becoming unprofitable. - FY2025RestatedAnnual report
「Engineering consulting, which accounts for approximately 60% of the Group’s revenue, is largely conducted under fixed-price contracts and consists mainly of systems development, structural design and consulting services.」
The Group reiterated the risk of large projects becoming unprofitable and described pre-order reviews, the PM Quality Assurance Center, the Structural Quality Assurance Center and quality management at each project stage as countermeasures. - FY2025-H1First statedAnnual report
「Engineering consulting, which accounts for approximately 60% of the Group’s revenue, is largely conducted under fixed-price contracts and consists mainly of systems development, structural design and consulting services. If deficiencies in contract terms or project management result in increased work hours or lower-quality deliverables, substantial deterioration in profitability or liability for damages to customers may arise, potentially having a significant adverse effect on the Group’s results and business development.」
The Group identifies as a risk the possibility that deficiencies in contracts or project management in its contract-based business, which accounts for approximately 60% of revenue, could lead to lower profitability and damages claims. Measures include the PM Quality Assurance Center, Structural Quality Assurance Center and pre-order reviews.