The "Under 5 Million Yen" Threshold | Construction Business Licenses and Contract Amounts

Hello, everyone.

This is Enta.

This is my room in Hokkaido, and I tried changing the direction I sleep in.

Changing the way I sleep makes me feel somehow refreshed.

Don't you ever get tired of always sleeping facing the same direction?

Ever since I was a child, I've liked sleeping in strange places around the house.

Go to sleep

I love that moment right after I wake up when I go, “Huh? Where am I??” lol

It doesn't matter whether you sleep with your head facing north or south.

I go to sleep with a happy mindset.

This might be a way to make your daily life—which you find boring—a little more enjoyable.

By the way, I have all kinds of things happening every day, and it’s a lot of fun lol


But that's beside the point.

The "Under 5 Million Yen" Threshold

If I just write this much, I think it'll be hard to understand.

This is the maximum contract amount per project for sole proprietors who do not hold a construction business license.

The cost is less than 5 million yen (including consumption tax) per construction project.

Exceeding this limit constitutes a violation of the Construction Industry Act and is subject to penalties.

 

These days, even general contractors are signing contracts with sole proprietors to carry out construction, so there are some job sites where the construction setup is just crazy lol

On the other hand, there are a lot of unlicensed operators out there, aren't there?

Some companies make it appear as though they are affiliated with a specific firm, when in fact they are operating as independent contractors.

(*Note: The term “moguri” as used here refers to businesses that are uninsured and do not pay taxes.)

 

The risks involved in using such unlicensed contractors are enormous, but,

Since the general contractor will naturally be held fully responsible, this could result in a suspension of eligibility for contract awards or, in the worst-case scenario, a suspension of business operations.

Apparently, this could result in the suspension of their construction business license, among other consequences.

However, there is also an element of tacit understanding involved.

Even though the general contractor is aware of this, due to a labor shortage...

It’s too late once an accident has already happened, though...

Unlicensed Operators

If the government tightens regulations, companies won't be able to enter that market, and unlicensed operators will emerge.

An unlicensed operator caused an accident, and regulations are getting stricter again.

Even if you try to sneak something past the regulations, it’s still a loophole, so we can’t handle it. We won’t handle it.

It's really a vicious cycle, isn't it? lol

Please be very careful of scammers.

 

Couldn't we change this "contract amount under 5 million" rule soon? lol

The reason is that we also have a reliable independent contractor on our team. (Of course, he’s fully insured and covered for everything.)

After all, since we expect them to do a solid job, we pay them accordingly.

But there's this hurdle, you see.

For people who aren't freeloaders or anything like that, I want them to tear down this wall and raise the limit to at least 8 million!

It’s only natural that if you work hard, you’ll get paid more, right!?

Self-Employed Contractor

What's more, with so few people around, the workload and financial burden on each craftsman just get bigger.

However, since most companies follow the law, it’s still difficult.

We also follow the law, so we'll comply. But I really wish there was a way to do something about this.

I wish there were a good way to do this. I know full well that I just need to get a construction business license, though. lol

 

See you later.

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