Liability for Defects in Deliverables and Risk of Unlimited Damages
First written in FY2016. 5 of 7 entries say "Restated". Latest entry: FY2026.
Ohba moved to the "Worse" side of this theme in 2026, 1 year after the typical company in this theme (2025).
The whole theme swung hardest in 2026: 6 of 25 companies on the "Worse" side.
0 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「If a contractual nonconformity arises due to mistakes, errors or other issues in deliverables, or if the company is subject to a lengthy suspension from designated bidding, this could have a material impact on business performance.」
The previous defect liability and compensation risk has been reframed as contractual nonconformity liability, and the impact of a lengthy suspension from designated bidding has also been expressly stated. - FY2022RestatedAnnual report
「Because the scope of defect liability for construction consulting services is currently stipulated in the “Standard Terms and Conditions of Contract for Public Civil Engineering Design Services and Other Services,” which does not cap damages, this could have a material impact on business performance.」
Defect liability for deliverables and contractual risk without a cap on damages continue to be disclosed. - FY2021RestatedAnnual report
「Because the scope of defect liability for construction consulting services is currently stipulated in the “Standard Terms and Conditions of Contract for Public Civil Engineering Design Services and Other Services,” which does not cap damages, this could have a material impact on business performance.」
Defect liability for deliverables and contractual risk without a cap on damages continue to be disclosed. - FY2020RestatedAnnual report
「Because the scope of defect liability for construction consulting services is currently stipulated in the “Standard Terms and Conditions of Contract for Public Civil Engineering Design Services and Other Services,” which does not cap damages, this could have a material impact on business performance.」
Defect liability for deliverables and contractual risk without a cap on damages continue to be disclosed. - FY2019RestatedAnnual report
「Because the scope of defect liability for construction consulting services is currently stipulated in the “Standard Terms and Conditions of Contract for Public Civil Engineering Design Services and Other Services,” which does not cap damages, this could have a material impact on business performance.」
Defect liability for deliverables and contractual risk without a cap on damages continue to be disclosed. - FY2018RestatedAnnual report
「Because the scope of defect liability for construction consulting services is currently stipulated in the “Standard Terms and Conditions of Contract for Public Civil Engineering Design Services and Other Services,” which does not cap damages, this could have a material impact on business performance.」
Defect liability for deliverables and contractual risk without a cap on damages continue to be disclosed. - FY2016First statedAnnual report
「We take every possible precaution in our deliverables review process to prevent defect liability arising from mistakes, errors or other issues in deliverables. However, under the current framework for construction consulting services, the scope of defect liability is not subject to any cap on damages.」
While a deliverables review system is in place, the potential liability under the Standard Terms and Conditions of Contract for Public Civil Engineering Design Services and Other Services is identified as a risk.