Deteriorating productivity and profitability due to changes in contract requirements
First written in FY2022. 2 of 3 entries say "Restated". Latest entry: FY2025.
5 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「To mitigate these risks, when changes to the scope of work occur, we hold close discussions with the customer and negotiate changes to the terms resulting from specification changes.」
The risk of deteriorating productivity and profitability due to changes in contract requirements and KPIs, together with measures involving discussions and negotiations on the terms, has been reconfirmed. - FY2023RestatedAnnual report
「To mitigate these risks, when changes to the scope of work occur, we hold close discussions with the customer and negotiate changes to the terms resulting from specification changes.」
The risks of deteriorating productivity and profitability and contract termination due to changes in contract requirements or KPIs, together with measures involving discussions and negotiations on the terms, have been reconfirmed. - FY2022First statedAnnual report
「These changes in requirements may also lead to changes in or additions to KPIs, or a fundamental revision of the purpose of the work itself. If the work becomes more difficult and exceeds the scope of the resources initially prepared by our group to help the customer achieve its objectives, productivity may decline and profitability may deteriorate. In addition, even with our best efforts, we may be unable to meet the KPI standards required by the customer, potentially disrupting the execution of the work and resulting in its termination or claims for damages.」
The possibility of changes to work requirements and KPIs, billing errors, lower productivity, contract termination and claims for damages is described.