Construction Industry, Real Estate Industry

Concerning the standards of action for impropriety by construction business operators (Overview)

1. Basic thoughts

This document concerns planning of revision of the "standards of action for impropriety by construction business operators" defined in 1994 (standards of action for impropriety related to bid-rigging and bribery in the Criminal Code and bid-rigging in the Anti-Monopoly Law) and establishes new standards of action.
The new standards aim to further advance transparency of actions, through new clarifications and public announcements of the standards regarding the reasons for actions, as stated below, and to prevent impropriety.
Reasons for action:
・False application for management inspection, complete subcontracting, and other unfaithful actions related to contracting
・Public harm and accidents concerning persons involved in construction
・Violations of laws, such as the Building Construction Standards Act, regarding the execution of construction work
 

2. Concrete contents

(1) Clarification and public announcement of new standards as stated below.

○Unfaithful actions related to contracting
・False applications (in cases such as when inspection results from a false application for management inspection are submitted to a contracting organizations for public works)...15 days or more
・Complete subcontracting...15 days or more
・Non-placement of a chief engineer or similar...15 days or more
or other standard management suspension
○Accidents
・Public harm
When an executive or employee receives a sentence of manslaughter or injury resulting from professional negligence through the death of a person or injury of three or more persons of the general public and it is regarded that the executive caused great harm to the public...a business suspension of 7 days or more is the general rule
In cases where the harm is regarded as small...instruction is the general rule
・Accident concerning a person involved in construction work
When an executive or employee receives a sentence because of a violation of the Work Safety and Hygiene Act...instruction is the general rule
However, when receiving a sentence of manslaughter or injury resulting from professional negligence through the death of a person or injury of three or more persons who are involved in construction work and it is regarded as particularly great harm...a business suspension of 3 days or more is the general rule
○Violation of other laws concerning the execution of construction work
Violations of the Construction Standards Act, Waste Management Act, or other law...if a board member or branch manager receives a sentence of imprisonment, a business suspension of 7 days or more is the general rule; in other cases, if an executive or employee receives a sentence, a business suspension of 3 days or more is the general rule
 
(2) Additionally, the following cases of malevolent impropriety are to be handled strictly

○Repeating the same impropriety...1.5 times the applicable suspension
○Repeating a similar impropriety within 3 years of completion of a previous action...extension of the period of business suspension as required; in particular, for a business suspension according to the accepted advise for exclusion based on the Anti-Monopoly Law
15 days ⇒ 30 days
 
*These standards became effective on May 1, 2002 and apply to impropriety occurring after the start of enforcement.
 
Notification: Concerning new administration standards for handling the impropriety of construction business operators (to Regional Development Bureaus)
Notification: Concerning new administration standards for handling the impropriety of construction business operators (to the heads of construction business groups)
Text: New administration standards for handling the impropriety of construction business operators (to Regional Development Bureaus)

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