Is Ordering That Includes Social Insurance Illegal? | How General Contractors Make a Profit

Hello, everyone.

This is Enta.

The president of a certain company once said,

The reason general contractors make a profit is that they include employee benefits (social insurance) in the construction costs when they place orders.

The reason is that they place the order for the total amount first. After that, the on-site supervisor determines the specifics and has a quote prepared.

(In accordance with the regulations of the company's Purchasing Department, Construction Division, etc.)

But this is actually illegal, you know.

However, according to the president, there are good times and bad times. It’s hard to generalize, but when it comes to whether the construction unit price has actually gone up compared to before,

He says he doesn't really feel that way. Social insurance is still the main hurdle.

Although social insurance costs have risen slightly, the actual construction costs haven't gone up that much, but,

The contract amount for the general contractor has risen significantly.

It's quite significant even at the labor cost unit rate level.

Anyone who works in cost estimation knows this: the fact that the amounts general contractors pay to subcontractors haven’t changed much from the past.

Is the government the only one that thinks the economy is improving and wages are rising without knowing any of this? lol

They said they wanted us to raise the unit price by 10 percent compared to what we’ve been charging so far.

I just happened to overhear that senior CEO talking... lol

Whether times are good or bad, contractors can’t survive unless they get work from the general contractor.

That’s how the subcontractor system works in public works projects. While the amounts of money involved are substantial, so are the risks.

As a subcontractor (that's me), I've already started getting really anxious about next year, lol.

Feeling anxious about yesterday—which I can’t change—and the future, and realizing that thinking about it won’t change anything, on Sunday,

Splatoon 2He let me in lol

I'm actually a bit of a gaming geek, but maybe it's because I'm getting older—I've started to get worse at games. (laughs)

As for me,I want to be hired by a general contractor for my technical and safety expertise!

We’re committed to becoming a trusted contractor that can provide new technologies and safe services!

*At the end of the year, instead of a year-end party,Subcontractor Encouragement AssociationBut I'd like to do it.

 

See you later.


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