Risk of damages claims and reputational damage arising from design defects and other issues
First written in FY2016. 6 of 12 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2026: 6 of 24 companies on the "Worse" side.
17 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「Thoroughly reviewed deliverables and worked to reduce error claims.」
States that, in response to risks including design defects, it continued reviewing deliverables and having the Technical Review Office oversee and review them, while working to reduce error claims. - FY2023MaterialisedAnnual report
「Operating profit was ¥996 million, down 2.1% from the previous consolidated fiscal year, due to lower production capacity and the burden of repair costs associated with responding to design defects, as well as the occurrence of loss-making projects with high cost ratios after a two-aircraft system was used in part of the aerial surveying business to secure the photographic area that had not been completed by the delivery deadline.」
Design defects have actually materialized as lower productivity and repair costs, and are reducing operating profit in the core business. - FY2023-Q3MaterialisedAnnual report
「During the cumulative third quarter, the road and civil engineering design field, the Group's core area, remained firm, particularly in the Chugoku region. However, revenue and profit declined, mainly due to a decrease in new orders in the water-supply field and lower production capacity associated with responding to design defects.」
The response to design defects actually reduced production capacity and is identified as a factor behind lower revenue and profit in the comprehensive construction consulting business. - FY2021MitigatedAnnual report
「In the comprehensive construction consulting business, the Group works to prevent quality defects through supervision and reviews by the Technical Review Office and reviews of individual projects within each production department. However, if a service-quality problem occurs, an investigation committee or similar body examines the cause, formulates measures to prevent recurrence and shares them horizontally with the relevant departments to strengthen quality control.」
The company specifies responses to risks involving design defects and other issues through project supervision and reviews, examination of causes, and horizontal implementation of measures to prevent recurrence. - FY2020MitigatedAnnual report
「In addition to quality patrols by the Technical Review Office, the Group works to prevent quality defects by reviewing individual projects before construction begins in each production department. If a quality problem occurs, an investigation committee or similar body examines the cause and prepares a report on measures to prevent recurrence, which is then shared horizontally with the relevant departments to strengthen quality control.」
The company specifies quality patrols, reviews of individual projects, analysis of causes and horizontal implementation of measures to prevent recurrence as responses to risks involving design defects and other issues. - FY2018RestatedAnnual report
「The Group systematically maintains consistent quality control through its proprietary quality management system. However, damages and other liabilities may arise due to defects attributable to design or other factors. Although the Group has defects liability insurance, sales may also be affected by administrative sanctions, loss of confidence in its technical capabilities and services, and other factors.」
While describing its quality control and defects liability insurance, the company continues to identify the risks of damages, administrative sanctions and loss of reputation due to design defects and other issues. - FY2018-Q3RestatedAnnual report
「During the first nine months of the fiscal year, there were no new business risks and no material changes to the business risks described in the previous fiscal year's securities report.」
The company concludes that there have been no material changes regarding the risks of damages and loss of reputation due to design defects and other issues. - FY2018-Q2RestatedAnnual report
「During the six-month period ended the second quarter of the current consolidated fiscal year, there were no new business risks or material changes to the business risks described in the previous fiscal year's Annual Securities Report.」
The company concludes that there have been no material changes regarding the risks of damages and loss of reputation due to design defects and other issues. - FY2017RestatedAnnual report
「The Group systematically maintains consistent quality control through its proprietary quality management system. However, damages and other liabilities may arise due to defects attributable to design or other factors.」
While describing its quality-control framework, the company continues to identify the risks of damages, administrative sanctions and loss of reputation due to design defects and other issues. - FY2017-Q3RestatedAnnual report
「During the first nine months of the fiscal year, there were no new business risks and no material changes to the business risks described in the previous fiscal year's securities report.」
The company concludes that there have been no material changes regarding the risks of damages and loss of reputation due to design defects and other issues. - FY2017-Q2RestatedAnnual report
「During the six-month period ended the second quarter of the current consolidated fiscal year, there were no new business risks or material changes to the business risks described in the previous fiscal year's Annual Securities Report.」
The company concludes that there have been no material changes regarding the risks of damages and loss of reputation due to design defects and other issues. - FY2016First statedAnnual report
「The Group systematically maintains consistent quality control through its proprietary quality management system. However, damages and other liabilities may arise due to defects attributable to design or other factors.」
While describing its quality-control framework, the company newly organizes the potential risks of damages, administrative sanctions and loss of reputation due to defects in design and other factors.