Three New Laws for the Next Generation of Workers | Institutional Reform in the Construction Industry
2019/07/05
Hello, everyone.
This is Enta.

Details regarding the “Three New Laws for the Next Generation of Industry Leaders” (comprising integrated amendments to the Product Quality Assurance Act, the Construction Industry Act, and the Public Contracts Act) have been announced.
The Ministry of Land, Infrastructure, Transport and Tourism’s website states the following:
Promoting Work-Style Reform
<品確法>
○ Responsibilities of the Ordering Party
・Setting an appropriate construction schedule (taking into account holidays, preparation periods, weather, etc.)
・Smoothing out the timing of construction projects (through measures such as financial commitments and the use of authorized carryover funds, etc.)
・Appropriate design changes (use of carryover appropriations when the construction period extends into the following fiscal year)
○ Responsibilities of Contractors (including subcontractors)
・Entering into subcontracting agreements with appropriate contract prices and project timelines
<建設業法・入契法>
○ Optimizing Construction Timelines
・The Central Construction Industry Council has formulated and recommended standards regarding construction schedules
・Prohibition on entering into construction contracts with unreasonably short project timelines (violators will receive a warning and be publicly named by the Minister of Land, Infrastructure, Transport and Tourism, etc.)
・Public works contracting authorities are required to make a best-efforts obligation to take measures to ensure the necessary construction period and to level out the timing of construction.
○ Improving Working Conditions on the Front Lines
・Making enrollment in social insurance a requirement for authorization
・The portion of subcontractor payments corresponding to labor costs shall be paid in cash.
Initiatives to Improve Productivity
<品確法>
○ Responsibilities of the Ordering Party and the Contractor
・Improving productivity through the use of information and communication technology, etc.
<建設業法>
○ Streamlining Regulations Concerning Engineers
・Supervising Engineer: If an assistant (Associate Engineer) is assigned, it is permissible for the supervising engineer to hold both positions concurrently.
・Chief Engineer (Subcontractor): Not required if certain conditions are met
Strengthening Emergency Response Capabilities During Disasters and Ensuring a Sustainable Business Environment
<品確法>
○ Responsibilities of the Ordering Party
・Selection of appropriate bidding and contracting methods, such as discretionary contracts and limited competitive bidding, based on the level of urgency
・Concluding disaster response agreements and fostering cooperation among contracting entities
・Reflecting the estimated costs of insurance premiums and other expenses required for workers' compensation in the budget, and utilizing cost estimates collected in the event of an accident
<建設業法>
○ Addition of Responsibilities for Construction Industry Associations in the Event of a Disaster
・Making cooperation between construction companies and local governments, etc., a duty of best efforts
○ Ensuring a Sustainable Business Environment
・Streamline regulations regarding management representatives
・Establish provisions regarding the transfer of construction business licenses
Ensuring Quality in Surveys and Design
<品確法>
○ Ensuring the Quality of Surveys and Design
・Add “surveying, geological surveys, and other investigations (including inspections and assessments) and design related to public works” to the scope of the provisions on basic principles and the responsibilities of the contracting authority and the contractor.
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It looks something like this.
The thing that concerns me the most is the situation for us as subcontractors,
・Supervising Engineer: If an assistant (Associate Engineer) is assigned, it is permissible for the supervising engineer to hold both positions concurrently.
・Chief Engineer (Subcontractor): Not required if certain conditions are met
・Streamline regulations regarding management representatives
・Establish provisions regarding the transfer of construction business licenses
Is that right?
Well, overall, I get the feeling things are going to get a bit stricter, though there might be some slight deregulation as well.
However, with the number of contractors and general contractors declining so sharply, I wonder if disaster response agreements and the like can actually be established.
In some areas, road maintenance and other projects don’t even make it to the bidding stage because the budget doesn’t cover the costs.
Apparently, it's at a level where even the government can't get it done.
That said, only local businesses can provide those kinds of services.
Even if a major general contractor comes, there's nothing we can do about it...

The current situation remains unchanged: only the major general contractors are making a profit, while some local companies continue to struggle to survive.
If we don't start paying a little more attention to local contractors, we're going to end up with no construction companies left at the municipal level, aren't we?
There’s no doubt that relying solely on subcontractors will hinder our work. After all, we don’t have any engineers!!
And it seems like local craftsmen who work two days a week and get paid by the day or month are about to be wiped out, right?
A recent trend among general contractors is that temporary engineers (with no qualifications or experience) are constantly coming and going.
They just disappear out of the blue, lol. General contractors have work, but they don't have any engineers.
Two people have already disappeared from our worksite lol
There are a lot of adults who don't even know how to quit a job. Seriously.
Do they really think that if they run away, they can just call it quits?? lol
Well, I feel bad for that general contractor, so if I'm around, I'll take care of it, okay?
We’ll definitely be keeping an eye on the Product Quality Assurance Act and the Construction Industry Act going forward!
See you later.