Concerning Construction Work Disputes Committees
Construction Work Disputes Committees are public institutions for simple, quick, and proper resolution of contracting disputes
Update (Important matters)
Note: PDF files can be obtained from the website of the Ministry of Land, Infrastructure, Transport and Tourism
Bureau of the Central Construction Work Disputes Committee
Last Update: January 15, 2008
Introduction - What to do in the case of a construction work dispute
Disputes can arise when payments must be made for work that differs from that determined in the contract and when there are important things left out or defects (shortcomings) in construction for orders to build a new private home and for public engineering, building construction, and facilities and electrical work. The number of cases of emotional reactions to minor faults is also steadily rising. In these cases, it is necessary to first calm down and talk to the other party. This is because disputes can also arise due failure to understand each other. In the that case you do not know how to properly proceed with resolution, you can also contact the legal advice office of your regional government.
What should I do if there is no prospect of resolution after talking directly with the other party? The first thing that might come to mind might be to obtain a court decision; however, alternative dispute resolution (ADR), such as civil reconciliation at court, through the mediation and arbitration centers of bar associations and resolution through a housing dispute committee are increasingly being utilized. Concerning the conditions of handling of these kinds of disputes, there are different areas of responsibility and various handling methods (housing disputes committees only deal with housing disputes for houses in accordance with the Housing Quality Assurance Act), and Construction Work Disputes Committees were established based on the Construction Industry Law as institutions for resolution of disputes in regard to construction work contracting.
Construction Work Disputes Committees are institutions specializing in disputes regarding construction work contracting based on the Construction Industry Law and characteristically resolve disputes quickly without public disclosure by utilizing their professional and technical expertise.
Individuals faced with housing defects and legal entities faced with unpaid construction work contracts and construction defects are especially advised to contact a committee for resolution.
The following is a descriptive overview of the Construction Work Disputes Committee System. Furthermore, the names "Construction Work Disputes Committee," "Central Construction Work Disputes Committee," and "Prefectural Construction Work Disputes Committee" are in accordance with the Construction Industry Law. Names such as "Building Construction Work Disputes Committee," "Building Construction Dispute Committee," and "Building Construction Committee" are not used.
1. Goals of the Committees
It is not uncommon for cases to require special knowledge concerning construction work technologies, policies, and trade practices for resolution of a construction contract dispute.
Construction Works Disputes Committees aim for quick and simple resolution of construction work disputes by experts and are established, in accordance with the Construction Industry Law, by the Ministry of Land, Infrastructure, Transport and Tourism (Central Construction Work Disputes Committee) and prefectures (Prefectural Construction Work Disputes Committee).
The Committees are judicial apparatuses that resolve civil disputes in accordance with the assertions of the involved parties and evidence and are not institutions that conduct guidance and supervision of construction businesses and judgment of technical skills. Furthermore, even if a construction business presents an application for a case to a committee and becomes an applicant or if it becomes the accused, there will be no damage or loss in regard to its construction work business or tendering for public works.
Flow Chart of Dispute Resolution by Construction Work Disputes Committees
Note: The authority of the committee can be changed if there is an authority consensus.
2. Members of the Committees
The committee members are comprised of experts such as members of the judiciary (mainly lawyers), members with academic experience in the technical fields of building construction, public engineering, electricity, or facilities, and members with experience in construction policy. They engage in dispute resolution from a professional, fair, and neutral standpoint.
3. Cases handled by the committees
In regard to disputes where both concerned parties are construction businesses, the committees deal with cases concerning interpretation and execution of "construction contracts" regarding defects in construction (problems) or unpaid contract money.
Consequently, they do not deal with disputes concerning buying or selling of real estate, disputes concerning exclusively design, disputes with neighbors about construction, or disputes between master contractors and subcontractors that are not directly related to contracting.
●Situation concerning handling of disputes by Construction Work Disputes Committees (by fiscal year)
4. Methods of handling disputes
The committee resolves disputes by "mediation," "conciliation," or "arbitration." The applicant decides on one of these methods according to the qualities of the case, the simplicity of resolution, or urgency and makes the appropriate application.
(However, to apply for arbitration, it is necessary to have an "arbitration agreement" from both concerned parties.)
As a general rule, the committee's process of dealing with a dispute is not disclosed to the public.
Differences between mediation, conciliation, and arbitration
5. Responsible committee
(1) Central Committee
- When one or both of the concerned parties are construction businesses with permits from the Minister of LIT
- When both concerned parties are construction businesses with permits from different prefectural governors
(2) Prefectural Committee
- When only one concerned party is a construction business with permits from the governor of the respective prefecture
- When both concerned parties are construction businesses with permits from the governor of the respective prefecture
- Beside the above, when both parties are not construction businesses with permits and the construction site concerned with the dispute is within the area of the respective prefecture
(3) Authority agreement
Regardless of the above (1) and (2), an application for dispute handling can be made to any committee if agreed upon by both parties.
6. Related laws
7. Related links
(1) Out-of-court dispute handling institutions (ADR institutions)
ADR General (ADR Japan)
Housing dispute committees of the bar associations (limited to disputes about houses evaluated according to the Housing Quality Assurance Act)
Mediation and arbitration centers of the bar associations
Civil reconciliation at court (see the "FAX about summary court civil proceedings" column)
(2) Consultation Services
General consultation for housing disputes (Housing Disputes Management Support Center in the Housing Reform and Disputes Management Support Center, Phone: 03-3556-5147)
Defective Housing Damages Kanto Liaison Council (consultation is accepted from persons residing in the Kanto region via fax; fax number: 03-3512-3444)
Housing Information Bureau (Housing Information Bureau Management Council)
Consultation for technical problems related to building construction (Japan Association of Architectural Firms Architecture Troubles Consultation<.a>, Japan Federation of Architects and Building Engineers Association, and The Japan Institute of Architects)
National Consumer Affairs Centers of Japan (Consultation Information)
Consumer Information Center Consultation Counters (For Consultations)
Judicial Consultation Centers of the bar associations
Bar associations of Japan
8. Other
Please ask the office of the committee you wish to apply to for detailed information about the application method. Some of the committees have application manuals. In these cases, it might be most efficient to first have a look at the manual.
The Central Construction Work Disputes Committee also distributes free pamphlets (PDF version) and a manual concerning applications and responses (PDF version). Persons who wish to receive a manual should contact the respective office (MLIT Annex, 14th Floor) directly or apply via the phone number below to have them mailed. You can also request that they be sent to you by fax.
In addition, if you have applied to the committee and have become a concerned party, please also read "To concerned parties" (PDF version).
(Address)
Ministry of Land, Infrastructure, Transport and Tourism
Office of the Central Construction Work Disputes Committee
2-1-3 Kasumigaseki, Chiyoda-ku, Tokyo 100-8944
(Disputes Regulation Office, Construction Business Section, MLIT General Policies Bureau)
Phone: 03-5253-8111 (extension 24764)
