Risk of Uncollectible Construction Payments and Schedule Delays Due to Counterparty Bankruptcies
First written in FY2023. 1 of 2 entries say "Restated". Latest entry: FY2024.
The whole theme swung hardest in 2021: 3 of 13 companies on the "Worse" side.
19 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「Our group seeks to mitigate the above risks by thoroughly investigating creditworthiness before transactions, strictly assessing work completed at construction sites, and sharing counterparties' credit information among departments.」
The company describes pre-transaction investigations, assessments of work completed and the sharing of credit information as measures to address the risks of collection difficulties, construction delays and additional costs caused by counterparties' bankruptcies. - FY2023First statedAnnual report
「In the custom-built-home business, if a business partner becomes insolvent before receiving the contract payment for construction work, collection of the construction payment may be impeded. In the condominium-for-sale business in particular, if a contractor commissioned to perform construction work becomes insolvent, delivery may be delayed due to delays in construction, and additional costs may arise from commissioning an alternative contractor. These events may affect the group's operating results and financial position.」
Separate from customers' trade receivables credit risk, the company has for the first time independently described the risks of uncollectible amounts, project delays and additional costs arising from the bankruptcy of counterparties in the custom-built-home business and contractors commissioned for condominium construction.