For construction projects with a contract value of less than 100 million yen, it will be possible to work on up to two sites simultaneously. So, what can we as subcontractors do in this situation!?

Hello, everyone.

This is Enta.

The other dayAt a press conference held by the Ministry of Land, Infrastructure, Transport and Tourism,


December 6, Reiwa 6

 

 In order to address cost pass-through and improve on-site management efficiency, certain amendments to the “Act to Partially Amend the Construction Industry Act and the Act on the Promotion of Fairness in Bidding and Contracting for Public Works” will take effect on December 13, Reiwa 6.

1. Overview
Certain amended provisions under the “Act to Partially Amend the Construction Industry Act and the Act on the Promotion of Fairness in Bidding and Contracting for Public Works,” which was enacted during the 213th Session of the Diet (Regular Session)Since it is stipulated that this Act shall come into effect on a date specified by Cabinet Order within six months of the date of its promulgation, today we have set the effective date asDecember 13, Reiwa 6In addition to establishing these provisions, the Cabinet approved a Cabinet Order setting the monetary limits and the maximum number of construction sites where concurrent service is permitted, as part of the amendments aimed at streamlining the requirement for full-time supervision engineers and other personnel.

* Addition of statutory required items to contracts; promotion of smoother negotiations regarding the passing on of price increases; rationalization of the requirement for full-time supervision engineers and similar personnel; rationalization of the duties of technical staff at business offices and similar positions; establishment of a duty to make efforts to ensure appropriate treatment; establishment of a duty to make efforts regarding the utilization of information and communication technology; and rationalization of the obligation to submit construction organization records for public works projects

2. Main Provisions of the Cabinet Order
○ Streamlining of the Requirement for Full-Time Supervising Engineers, etc.
(Article 26, Paragraph 3 of the Construction Industry Act; Article 28 of the Order for Enforcement of the Construction Industry Act)
With regard to supervising engineers and other personnel who are required to be assigned exclusively to a construction site, if the status of the site can be verified using information and communication technology or similar means, they will be permitted to concurrently serve at up to two sites for projects with a contract price of less than 100 million yen (or less than 200 million yen for comprehensive building construction projects). Furthermore, technical staff at business offices will be permitted to serve concurrently at up to one construction site for projects with a contract price of less than 100 million yen (or less than 200 million yen for comprehensive building construction projects).

* Regarding the “streamlining of the requirement for full-time supervision engineers, etc.,” we will provide further details on the requirements to be stipulated by ministerial ordinance by the 13th.
* Regarding provisions other than those listed above that include requirements specified by ministerial ordinance (such as facilitating price pass-through negotiations), we will provide further details by the 13th.

To realize a sustainable construction industry, we will enforce certain provisions of the Act to Amend the Construction Industry Act and Other Laws.
~Cabinet Approves “Cabinet Order Partially Amending the Enforcement Order of the Construction Industry Act and the Enforcement Order of the National University Corporation Act,” Among Other Measures~


Ministry of Land, Infrastructure, Transport and Tourism Lighting Truck

An article like this has been published.

 

Well, at first glance, this is just...!!!!

There's that saying, right? lol

○ Streamlining of the Requirement for Full-Time Supervising Engineers, etc.

(Article 26, Paragraph 3 of the Construction Industry Act; Article 28 of the Order for Enforcement of the Construction Industry Act)

Regarding supervising engineers and other personnel who are required to be assigned exclusively to construction sites,

When information and communication technology or similar means allow for monitoring conditions at a construction site,

For construction projects with a contract price of less than 100 million yen (or less than 200 million yen for comprehensive construction projects),

Handling two job sites simultaneouslyYou'll be able to do it.

Note that for branch office engineers and other personnel, the contract price is less than 100 million yen(For general construction projects, the amount is less than 200 million yen)

Regarding the Construction WorkConcurrently serving at one worksiteYou'll be able to do it.

 

So, what this means is that the supervising engineer for the general contractor has a tough job.

Isn't that already a killer workload? lol

It would be nice if the company reflected that in our pay, though.

Site representatives are important, too, aren't they?

Because there are so few people, the number of general contractors choosing not to participate in bids is steadily increasing, and

I suppose that means the government is steadily moving forward with deregulation.

Ministry of Land, Infrastructure, Transport and Tourism (MLIT) Response Headquarters Vehicle

Deregulation like this affects us as well.

I believe the general contractor will assign a young representative to the site, who will then be supervised by the supervising engineer.

There's no doubt the company would just say something like that, lol.

 

What should the supervising engineer do in that situation?

I think supervising engineers tend to use contractors that are easy for them to work with.

It’s a bit worrisome to rely solely on an (inexperienced) site representative, so you’d want some other solid support as well, wouldn’t you?

 

This is the kind of subcontractor you can turn to in situations like that!

A subcontractor with a certain level of management expertise.

I can read drawings and construction plans, and I understand the general specifications.

Artisan

Well, I guess it’ll end up being a company where most of the employees come from major firms, lol.

 

That said, I think it’s a good thing because it gives us subcontractors a chance—even a small one—to be selected.

This is already the case, but the trend will accelerate in the future, leading to a decline in both general contractors and subcontractors.

 

This year has seen the highest number of bankruptcies in the construction industry in the past 10 years.

The "2024 Problem" forced quite a few businesses to close or go bankrupt.

Furthermore, due to the aging workforce in the construction industry—a problem expected to arise next year, in 2025—

It is predicted that the labor shortage will worsen in 2025 due to a large number of employees retiring.

 

We're also gradually letting go of the site representatives who were with the general contractor.

Artisans are disappearing one after another.

Especially among site representatives for general contractors, there are a lot of people who just don't want to do construction management anymore! lol

That’s just how demanding the jobs of site representatives and supervising engineers are.

Director

There might be some people who would be willing to join a small local company and take on a supporting role, but...

Right now, my former boss is working as a site representative even though he's almost 70, but he says he's at his limit, lol.

And the way he boldly tells the government office, “Don’t give me any trouble,” lol (I was listening from the side and was on the edge of my seat)

It feels like all the tedious paperwork ends up on my desk.

 

When we have exchanges like this, it really makes me realize that we subcontractors have to do our part properly!

I provide reliable safety, precise construction, and flawless quality—and, if you will, I assist with construction management.

Maybe that's just the way things are these days. (Not that I know, lol.)

 

That said, it would be ideal if we could use training to supplement the contractors’ (craftsmen’s) understanding of construction standards (finish and quality).

The crew members—other than the director—say, “This quality is unacceptable! This result is unacceptable!”

That kind of work environment is kind of fun, isn't it?

 

See you later.

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