Risks of Estimation Errors, Delivery Delays and Acceptance Delays in System Implementation Projects
First written in FY2017. 3 of 7 entries say "Restated". Latest entry: FY2026.
Image Information moved to the "Worse" side of this theme in 2019, 4 years before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 7 of 13 companies on the "Worse" side.
14 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「The Group forecasts and estimates costs incurred based on work schedules and other factors, but accurately estimating costs for variable elements is difficult. If actual costs exceed estimated costs, profitability may be low or the project may become unprofitable.」
The Company continues to address the risks of lower profitability from cost estimate overruns and delivery and customer acceptance delays through project-level cost forecasting and labour-hour management. - FY2021-Q3Decrease in provision for losses on construction contractsAnnual report
「This was mainly due to a decrease of ¥15.468 million in the provision for bonuses and a decrease of ¥21.863 million in the provision for loss on construction contracts.」
The provision for loss on construction contracts recognised at the end of the previous fiscal year decreased by ¥21.863 million, leaving a balance of ¥2.823 million. The Company does not state that the delays and low-profitability risks themselves have been eliminated. - FY2020MaterialisedAnnual report
「Due to delays in part of the system design work, the Company was unable to allocate human resources to planned orders, resulting in missed opportunities. It also recognised a provision for loss on construction contracts of ¥24.686 million, representing the excess of the total estimated cost of sales for the delayed project over revenue already recognised.」
Delays in system design work and recognition of a provision for loss on construction contracts of ¥24.686 million have resulted in the risks of inaccurate estimates and delivery delays materialising as specific losses. - FY2020-Q2MaterialisedAnnual report
「Provision for loss on construction contracts — 7,717」
At the end of the second quarter, the Company had recognised a provision for loss on construction contracts of ¥7.717 million, making the risk of lower profitability in system construction and other work a specific loss provision. - FY2019RestatedAnnual report
「If actual costs exceed estimated costs, profitability may be low or the project may become unprofitable. In addition, when undertaking system construction and other work from customers, the Company is required to deliver the systems and other deliverables by the deadline. If system delivery or customer acceptance is delayed beyond the original schedule for any reason, this may result in a decline in confidence and increased expenses.」
The Company continues to identify the risks of cost overruns in system construction, lower profitability, and delivery and customer acceptance delays. - FY2018RestatedAnnual report
「The Group forecasts and estimates costs incurred based on work schedules and other factors, but accurately estimating costs for variable elements is difficult. If actual costs exceed estimated costs, profitability may be low or the project may become unprofitable. In addition, when undertaking system construction and other work from customers, the Company is required to deliver the systems and other deliverables by the deadline. If system delivery or customer acceptance is delayed beyond the original schedule for any reason, this may result in a decline in confidence and increased expenses.」
The Company continues to identify the risks of cost overruns in system construction, lower profitability, and delivery and customer acceptance delays. - FY2017First statedAnnual report
「If actual costs exceed estimated costs, profitability may be low or the project may become unprofitable. In addition, when undertaking system construction and other work from customers, the Company is required to deliver the systems and other deliverables by the deadline. If system delivery or customer acceptance is delayed beyond the original schedule for any reason, this may result in a decline in confidence and increased expenses.」
The Company identifies as new risks cost overruns in system development, lower profitability, and declining confidence and higher costs resulting from delivery and customer acceptance delays.