Risk of Delivery Delays Caused by Specification Changes and Defects in Contract Development
First written in FY2021. 4 of 8 entries say "Restated". Latest entry: 2026-09-30.
The whole theme swung hardest in 2017: 9 of 31 companies on the "Worse" side.
6 other companies' latest entry also says "Worsened".
- FY2026MaterialisedAnnual report
「As a result of recording a provision for contract loss to address quality control issues in a long-term, large-scale project that began in December 2025, revenue for the consolidated fiscal year under review was ¥3,298,875 thousand, up 39.5% year on year, and operating profit was ¥47,423 thousand, up 19.4% year on year.」
The Company states that quality control issues actually arose in a contracted development project, resulting in the recognition of a provision for contract loss. - FY2025RestatedAnnual report
「Under a fixed-price contract, a substantial change in specifications or the occurrence of an unexpected defect may increase development man-hours, affect the originally scheduled delivery date and cause revenue based on customer acceptance to be recognized in the following quarter or fiscal year.」
The risks of delivery delays and deferred revenue recognition due to specification changes and defects, together with measures involving standardization, quality control and promotion of quasi-mandate contracts, have been reconfirmed. - FY2024RestatedAnnual report
「Under a fixed-price contract, a substantial change in specifications or the occurrence of an unexpected defect may increase development man-hours, affect the originally scheduled delivery date and cause revenue based on customer acceptance to be recognized in the following quarter or fiscal year.」
The risks of delivery delays and deferred revenue recognition due to specification changes and defects, together with measures involving standardization, quality control and promotion of quasi-mandate contracts, have been reconfirmed. - FY2023RestatedAnnual report
「A substantial change in specifications or the occurrence of an unexpected defect may increase development man-hours, affect the originally scheduled delivery date and cause revenue based on customer acceptance to be recognized in the following quarter or fiscal year.」
The risks of delivery delays and deferred revenue recognition due to specification changes and defects in contracted development, together with measures involving standardization, quality control and promotion of quasi-mandate contracts, have been reconfirmed. - FY2022RestatedAnnual report
「A substantial change in specifications or the occurrence of an unexpected defect may increase development man-hours, affect the originally scheduled delivery date and cause revenue based on customer acceptance to be recognized in the following quarter or fiscal year.」
The risks of delivery delays and deferred revenue recognition due to specification changes and defects, together with measures involving standardization, quality control and promotion of quasi-mandate contracts, have been reiterated. - FY2021First statedAnnual report
「A substantial change in specifications or the occurrence of an unexpected defect may increase development man-hours, affect the originally scheduled delivery date and cause revenue based on customer acceptance to be recognized in the following quarter or fiscal year.」
The Company describes measures including standardizing development know-how, establishing a quality control system, reducing fixed-price contracts and promoting quasi-mandate contracts.