![\"Money\"](\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2021\/09\/2021-09-09-09.18.21.jpg\")
<\/p>\nHello, everyone.<\/p>\n
This is Enta.<\/p>\n
Hi, this is Enta.<\/p>\n
<\/p>\n
\"Negotiating contract amounts\" is an essential part of daily life in the construction industry.<\/p>\n
During a meeting, the general contractor\u2019s representative said, \u201cHmm, that price is a little high\u2026,\u201d and<\/p>\n
This person is wringing their hands, thinking, \u201cIf prices drop any further, the company won\u2019t survive!\u201d<\/p>\n
I\u2019m sure everyone has experienced situations like that, whether as a general contractor or a subcontractor, right?<\/p>\n
<\/p>\n
Why is there such a difference in how the two sides perceive things?<\/p>\n
Today, we\u2019ll take a closer look at the background of this issue from the perspectives of both the \u201cprime contractor\u201d and the \u201csubcontractor.\u201d<\/p>\n
<\/p>\n
A sense of money where any amount higher than one\u2019s own take-home pay is considered \u201chigh\u201d (the line between what\u2019s \u201chigh\u201d and \u201clow\u201d)<\/p>\n
The person in charge of managing the site is what you might call a \u201csalaried worker.\u201d<\/p>\n
Their salaries are fixed, right? (Although they do fluctuate depending on overtime and other factors.)<\/p>\n
I receive a steady monthly salary from my company.<\/p>\n
That's why I don't really feel that \"profits = my salary.\"<\/p>\n
That's because I get a steady monthly salary, and my entire take-home pay is mine to keep.<\/p>\n
All money spent on-site is considered an expense (company money).<\/p>\n
![\"General](\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2025\/09\/29bc849b357cc10fb1c392dc2a116e37-1.jpg\")
<\/p>\n
My boss is constantly putting pressure on me to \"keep costs down.\"<\/p>\n
There is a tendency to view placing an order at even a slightly lower price as \u201cgood work.\u201d<\/p>\n
<\/p>\n
Their responsibility is to \u201ckeep costs down on site.\u201d<\/p>\n
So when it comes to negotiating unit prices, I can\u2019t help but keep saying, \u201cCan you lower it a little more?\u201d<\/p>\n
In fact, there are quite a few times when I\u2019ll even lie just to get a better deal! *<\/p>\n
<\/p>\n
In other words, for the person in charge at the general contractor, protecting \u201ctheir position and reputation\u201d is the top priority.<\/p>\n
That\u2019s exactly why I can\u2019t imagine the circumstances of the subcontractors behind the numbers.<\/p>\n
Or rather, I\u2019ve never been in that position, so I don\u2019t know.<\/p>\n
<\/p>\n
I used to feel the same way\u2014if the unit price goes up by just 100 yen, the total ends up being 1 million yen!!<\/p>\n
A million is an outrageous amount of money!! How many times my salary is that, anyway?!?? I have to cut back!!!<\/p>\n
That's what I was thinking, lol (I guess this is normal when you're young)<\/p>\n
<\/p>\n
On the other hand, from the perspective of a subcontractor\u2019s president, the situation looks completely different.<\/p>\n
<\/p>\n
Employee salaries, social insurance premiums, loans for vehicles and heavy equipment, material costs, fuel costs\u2026 None of these can wait.<\/p>\n
Even down to the last yen?! (Actually, it's in 1,000-yen increments.)<\/p>\n
Even a slight reduction in profit margins can throw the company\u2019s entire cash flow off balance. (Things tend to get particularly tough on general contractor job sites.)<\/p>\n
This is a matter of life and death, especially for small companies.<\/p>\n
![\"Subcontractor](\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2025\/09\/aeac0f6fc6467f06f67094be3d1ba9ba-1.jpg\")
<\/p>\n
If a company runs a deficit, it can easily go under. (It doesn't mean it will go under immediately.)<\/p>\n
That's why if you compromise during price negotiations, you'll end up shooting yourself in the foot later on.<\/p>\n
In other words, for the president, the contract amount is a lifeline that safeguards \u201cthe livelihoods of employees\u201d and \u201cthe company\u2019s survival.\u201d<\/p>\n
Even an amount that the general contractor\u2019s representative might consider a \u201csmall figure,\u201d<\/p>\n
For the CEO, this figure is likely to be a major factor in determining whether the company goes bankrupt or survives.<\/p>\n
(Because where I am today is the result of all those small steps I\u2019ve taken over time)<\/p>\n
If we push through with this, the losses from that project will eat into the profits from other projects!<\/p>\n
What's more, if we don't take on that project, we won't run a deficit\u2014and there's even a chance we could turn a profit on other projects!?<\/p>\n
<\/p>\n
Even when looking at the same amount of money, the \u201cview\u201d differs because their perspectives are different.<\/p>\n
Prime Contractor Representative: \"To protect my reputation and position, I want to keep the total cost as low as possible.\"<\/p>\n
Subcontractor President: \"To protect the company, I simply can't lower the price any further.\"<\/p>\n
<\/p>\n
As long as this gap exists, it is only natural that friction will inevitably arise during negotiations.<\/p>\n
When you find yourself thinking, \u201cWhy are they being so reluctant?!\u201d it\u2019s actually just because you both come from different backgrounds.<\/p>\n
![\"Friction\"](\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2025\/09\/35a6046bfcd81dc83541768ca79fde99-1.jpg\")
<\/p>\n
During a meeting, when the general contractor said, \u201cThis amount won\u2019t get approved by upper management,\u201d<\/p>\n
The subcontractor protested, saying, \u201cWe don\u2019t even get paid for the machine costs!\u201d<\/p>\n
When the general contractor cuts costs, it puts undue strain on the job site, which ultimately compromises worker safety and quality.<\/p>\n
If a subcontractor takes on a project it can\u2019t handle and ends up operating at a loss, it will lose the financial strength needed to support its next project.<\/p>\n
The reality is that these \u201ccommon on-site experiences\u201d have accumulated over time, leading to the overall exhaustion of subcontractors across the industry.<\/p>\n
In the worst-case scenario, I won't work for that company anymore.<\/p>\n
It ends up being like, \"I'm not going to Mr.\/Ms. \u25cb\u25cb's worksite!\"<\/p>\n
<\/p>\n
There isn't just one solution, but there are some hints.<\/p>\n
<\/p>\n
Imagining What Lies Behind the Numbers<\/p>\n
The general contractor should try to imagine, \u201cCan we protect the company and our employees with that amount?\u201d<\/p>\n
\"Won't that cost more?\" and so on.<\/p>\n
<\/p>\n
Be transparent<\/p>\n
The subcontractor must explain \u201cwhy this unit price is necessary,\u201d along with the basis for equipment and labor costs.<\/p>\n
<\/p>\n
Building Collaborative Relationships<\/p>\n
We prioritize building relationships that can be sustained over the long term, rather than just meeting short-term targets.
\n(I think things like this have become less common lately\u2014maybe they don't even exist anymore.)<\/p>\n
(*Please refuse\u2014any claims that they\u2019ll return it at the next job site are all lies!)<\/strong><\/p>\n Just by trying to understand each other's perspectives, we should be able to reduce unnecessary conflicts, right?<\/p>\n The reason negotiations over contract amounts break down is that \u201ceven when the amount is the same, people perceive the value differently.\u201d<\/p>\n The representative of the general contractor is protecting his position as a company employee, while the president of the subcontracting firm is safeguarding the survival of his entire company.<\/p>\n Just knowing this structure should help you stay calm and discuss matters rationally during negotiations, without getting emotional.<\/p>\n At the end of the day, it\u2019s \u201cpeople\u201d who make things happen on the ground.<\/p>\n I think that if we can imagine each other\u2019s perspectives just a little, we might be able to build a better relationship.<\/p>\n <\/p>\n That said, in the end, the subcontractors end up taking the brunt of it, don't they?<\/p>\n That's the reality, lol.<\/p>\n And then, the general contractor...You must have made a profit this time!!?<\/strong><\/span>That's what I ask, lol<\/p>\n This is the worst.<\/p>\n \"What exactly are you basing that on?\" the subcontractor's boss is thinking to himself, lol.<\/p>\n You'd better not say that.<\/p>\n <\/p>\n At this site, I do my best to contribute as much as possible.<\/p>\n It's enough just to say that ^^<\/p>\n <\/p>\n See you later.<\/p>","protected":false},"excerpt":{"rendered":" Hello, everyone. This is Enta. Hello, I\u2019m Enta. One thing that\u2019s an everyday necessity in the construction industry is \u201cnegotiating contract prices.\u201d During a meeting, the general contractor might say, \u201cHmm, that price is a little high\u2026\u201d and we end up scratching our heads, thinking, \u201cIf we lower it any further, the company won\u2019t survive!\u201d\u2026<\/p>","protected":false},"author":2,"featured_media":55882,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[4709,5393,7006,7007,7008],"class_list":["post-55786","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-4709","tag-5393","tag-7006","tag-7007","tag-7008"],"acf":[],"yoast_head":"\n![\"Focus\"](\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2025\/09\/7a591ffda8944149b74fac472cb95eea-1.jpg\")
<\/p>\n