Risk of Longer Project Timelines and Construction Cost Volatility Due to Legal Amendments
First written in FY2024-Q3. 1 of 4 entries say "Dropped", first in FY2025-H1. Latest entry: FY2026.
e-LogiT moved to the "Worse" side of this theme in 2026.
0 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「Amendments to labor-related laws and regulations, logistics-related laws and regulations, the Act on the Optimization of Small and Medium-Sized Enterprise Subcontracting Transactions (the Act on the Optimization of Subcontracting Transactions), and other laws and regulations require stronger labor management systems, enhanced occupational safety and health measures, and stronger management systems for outsourcing providers.」
The risks have been reorganized from legal amendments and construction cost fluctuations premised on the construction business to the risk of higher costs, including labor, outsourcing and capital investment expenses, arising from logistics-related laws and regulations and the Act on the Optimization of Subcontracting Transactions. - FY2025Reinclusion of previously disclosed risksAnnual report
「Changes in labor management and other matters resulting from amendments to the Building Standards Act and the Construction Business Act, which are reviewed periodically, may lengthen construction periods or increase costs through the need for additional personnel.」
The risk of cost fluctuations due to legal amendments, described as eliminated in the previous fiscal year, has been listed again among the risks for the current fiscal year. - FY2025-H1DroppedAnnual report
「Following the transfer of shares in the Company’s consolidated subsidiary, the following items disclosed in the annual securities report for the previous fiscal year have been eliminated: “(11) Cost fluctuations due to legal amendments,” “(12) Quality control,” “(13) Occupational accidents and other accidents,” and “(14) Credit risk of business partners.”」
The Company states that the risk of longer construction periods and fluctuations in construction costs due to legal amendments was eliminated following the transfer of shares in the consolidated subsidiary. - FY2024-Q3First statedAnnual report
「Changes in labor management and other matters resulting from amendments to the Building Standards Act and the Construction Business Act, which are reviewed periodically, may lengthen construction periods or increase costs through the need for additional personnel. If higher costs cannot be reflected in contract prices, they may affect the Group’s operating results and financial position.」
The Company newly describes the risk that amendments to the Building Standards Act and the Construction Business Act may change construction periods and staffing requirements, causing costs to rise without the increases being reflected in contract prices.