{"id":58124,"date":"2026-01-31T08:00:30","date_gmt":"2026-01-30T23:00:30","guid":{"rendered":"https:\/\/norimen.net\/?p=58124"},"modified":"2026-08-09T14:00:01","modified_gmt":"2026-08-09T05:00:01","slug":"standard-labor-cost-latest-news","status":"publish","type":"post","link":"https:\/\/norimen.net\/en\/standard-labor-cost-start-news\/","title":{"rendered":"\"Standard Labor Costs\" Finally Take Effect! Toward an Era Where Subcontractors Are No Longer Exploited\u2014How Will Business Practices in the Construction Industry Change? (From Construction Enjin PLUS)"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-58125\" src=\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2026\/01\/1769141946824.jpg\" alt=\"Money and Systems\" width=\"600\" height=\"398\" \/><\/p>\n<h2 id=\"outline_1__1\">\ud83d\udccc What Are Standard Labor Costs? The Basics You Might Be Too Embarrassed to Ask About Now<\/h2>\n<p>As we enter 2026, one thing that is attracting a great deal of attention in the construction industry is\u00a0<strong>Full-Scale Implementation of \u201cStandard Labor Costs\u201d<\/strong>That's it\ud83d\udcca.<br \/>\nThis is a new standard established in response to the amendments to the Construction Industry Act to protect the wage levels of skilled workers.<\/p>\n<p>In the construction industry to date,<br \/>\n\ud83d\udca6 \u201cThe contract price offered by the general contractor is too low.\u201d<br \/>\n\ud83d\udca6 \u201cIn the end, the burden falls on subcontractors and craftsmen.\u201d<br \/>\nThis structure has been a long-standing issue.<\/p>\n<p>Standard labor costs are intended to break this vicious cycle<br \/>\n\ud83d\udc49\u00a0<strong>A system that sets standard rates for appropriate labor costs by job type and task<\/strong><br \/>\nIt was introduced as...<\/p>\n<p>It is particularly important to note that ensuring effectiveness at the contract and payment stages is a top priority\u26a0\ufe0f.<br \/>\nThe question is not simply about a \"guideline,\" but how to apply it in practice.<\/p>\n<h2 id=\"outline_1__2\">\ud83c\udfd7 What was discussed at the Central Building Review Committee Working Group meeting?<\/h2>\n<p>A working group of the Central Construction Industry Council (Chuken-shin) has held 11 meetings to discuss the development and implementation of standard labor costs.\ud83d\udcdd<\/p>\n<p>Mr. Raita Araki, a representative of the Japan Construction Industry Association who participated in his capacity as a general contractor, expressed strong concern about \u201cthe tendency for theory to take precedence, leading to a disconnect from the realities on the ground.\u201d<br \/>\nThe main focus was on \ud83d\udc49<strong>The \"Bugakari\" Problem<\/strong>That's it.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-58126 size-full\" src=\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2026\/01\/1769135731500.jpg\" alt=\"Mr. Araki Reflects on the Discussions of the Central Building Review Committee Working Group\" width=\"426\" height=\"500\" \/><\/p>\n<p><span style=\"font-size: 10px;\">Mr. Araki Reflects on the Discussions of the Central Building Review Committee Working Group<\/span><br \/>\n<span style=\"font-size: 10px;\">*Image courtesy of the Nikkan Construction Industry News.<\/span><\/p>\n<h2 id=\"outline_1__3\">\u2699 Discrepancies Between Small-Scale Projects and Standard Labor Rates<\/h2>\n<p>The standard value for standard labor costs is,<strong>As a general rule, the standard labor rates for civil engineering work used in projects directly managed by the Ministry of Land, Infrastructure, Transport and Tourism<\/strong>It states that...<\/p>\n<p>However, in actual local government and private-sector construction projects,<br \/>\n\ud83d\udea7 Small-scale construction project<br \/>\n\ud83d\udea7 Harsh on-site conditions<br \/>\n\ud83d\udea7 There are a lot of setup changes<br \/>\nFor reasons such as these,<strong>There have been numerous cases where the standard labor rates do not match<\/strong>I'll do it \ud83d\ude25.<\/p>\n<p>This issue has been around for many years,<br \/>\n\u2714 Local Construction Company<br \/>\n\u2714 Small and Medium-Sized Enterprises<br \/>\n\u2714 Construction Projects Contracted by Local Governments<br \/>\nhas been a source of concern.<\/p>\n<h2 id=\"outline_1__4\">\ud83c\udfdb Why Local Governments Could Not Use Their Own Rate of Allocation<\/h2>\n<p>\"Well, then, shouldn't local governments just handle the adjustments on their own?\" I'm sure many of you are thinking that. \ud83e\udd14<br \/>\nIn reality, however, the risks pointed out by the Board of Audit served as a barrier.<\/p>\n<p>According to a survey by the Ministry of Land, Infrastructure, Transport and Tourism, about half of the municipalities that do not have their own unit rates<br \/>\n\ud83d\udc49 \u201cI\u2019m afraid the test results will show a problem.\u201d<br \/>\nThat is their response.<\/p>\n<p>In response, the Ministry of Land, Infrastructure, Transport and Tourism stated that,<br \/>\n\ud83d\udcd8 Organize the collection of best practices and roll them out nationwide<br \/>\nannounced its policy to do so.<\/p>\n<p>If this goes ahead,<br \/>\n\u2728<strong>\u00a0Setting Labor Costs Suitable for Small-Scale Construction Projects<\/strong><br \/>\n<strong>\u2728 Cost Estimation Based on Actual Site Conditions<\/strong><br \/>\nIt is expected that this will become possible.<\/p>\n<h2 id=\"outline_1__5\">\ud83d\udcb0 The Bidding System and the Issue of the \u201cWin Rate\u201d<\/h2>\n<p>Another important topic is the bidding system for public works projects\ud83d\udcc9.<\/p>\n<p>Under a system where the contract price is calculated by multiplying the order price by the winning bid rate,<br \/>\nNo matter what<br \/>\n\ud83d\udc49 Labor costs are often the first to be cut<br \/>\n\ud83d\udc49 Falls short of actual wages<br \/>\nThis leads to the following problem.<\/p>\n<p>The Ministry of Land, Infrastructure, Transport and Tourism also,<strong>Criticizing the \"practice of estimating the estimated price based on past performance\"<\/strong>and,<strong>A commitment to continuing the review of the system<\/strong>shows.<br \/>\nEven if we don't reach a conclusion right away, the fact that we've identified the issue together is a major step forward in itself. \ud83d\udc4d<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-58127\" src=\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2026\/01\/1769135875239.jpg\" alt=\"Meeting\" width=\"600\" height=\"345\" \/><br \/>\n*The image is for illustrative purposes only.<\/p>\n<h2 id=\"outline_1__6\">\ud83e\udd1d \u201cEthics\u201d Are Especially Important in Private Construction Projects\u201d<\/h2>\n<p>What Mr. Araki emphasized was,<strong>Public works and private-sector construction projects are fundamentally different.<\/strong>That is the point.<\/p>\n<p>Private construction projects are<br \/>\n\ud83c\udfc1 A Relationship of Trust Established Before the Bid<br \/>\n\ud83c\udfc1 Securing Special Assignments and Exclusive Contracts<br \/>\n\ud83c\udfc1 Differentiation Strategy<br \/>\nOrders are determined by .<\/p>\n<p>That's exactly why,<br \/>\n\ud83d\ude22<strong>\"The prime contractor is being tough, so the subcontractors are bearing the brunt of it.\"<\/strong><br \/>\nWe need to break this pattern.<\/p>\n<p>Standard labor costs are<br \/>\n\ud83d\udccf Minimum Rules to Follow<br \/>\nand functions as,<br \/>\nFurthermore,<br \/>\n\u2764\ufe0f Ethics That Don't Let Subcontractors Down<br \/>\nIt is important for the entire industry to nurture this.<\/p>\n<h2 id=\"outline_1__7\">\ud83d\ude80 Steps Small and Medium-Sized Construction Companies Should Take Now<\/h2>\n<p>So, what should small and medium-sized businesses keep in mind? \ud83d\udd0d<\/p>\n<p>\u2705<strong>\u00a0Clarify the Basis for Labor Costs When Preparing Estimates<\/strong><br \/>\n<strong>\u2705 Review of contract terms with partner companies<\/strong><br \/>\n<strong>\u2705 Establishing a system to explain \u201cfair pricing\u201d<\/strong><\/p>\n<p>These are<br \/>\n\ud83d\udca1 Tools to Protect Your Company from Price Negotiations<br \/>\n\ud83d\udca1 Investing in Talent Acquisition and Retention<br \/>\nIt also leads to...<\/p>\n<p>Standard labor costs are not a \"restriction,\" but rather,<br \/>\n\u2728An Opportunity to Bring the Industry Back on Track<br \/>\nIt is important to view it this way.<\/p>\n<h2 id=\"outline_1__8\">Summary<\/h2>\n<p>The implementation of standard labor costs begins on,<strong>A Major Step Toward Changing Business Practices in the Construction Industry<\/strong>That's it.<br \/>\nCreating a \u201cconstruction site where subcontractors aren\u2019t exploited\u201d through a dual approach of institutional frameworks and ethical standards will likely be the shortest path to a sustainable construction industry.<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/kensetsu-engine-media.jp\/\" target=\"_blank\" rel=\"noopener\">Construction Circle PLUS<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>\ud83d\udccc What Are Standard Labor Costs? The Basics You Might Be Too Embarrassed to Ask Now That we\u2019ve entered 2026, the full-scale implementation of \u201cstandard labor costs\u201d is drawing significant attention in the construction industry\ud83d\udcca. This is a new system established in response to the amendments to the Construction Industry Act to protect the wage levels of skilled workers\u2026<\/p>","protected":false},"author":2,"featured_media":58127,"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":[14178],"class_list":["post-58124","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-plus"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.4 (Yoast SEO v28.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ 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