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Overview of the 2024 Amendments to the Japanese Construction Business Act and Their Impact on Contract Price Adjustment

On June 7, 2024, the “Bill to partially amend the Construction Business Act and the Act for Promoting Proper Tendering and Contracting for Public Works (Cabinet Bill No. 51)" (the “Bill”) was passed by the National Diet (the national legislature of Japan).
This revision aims to secure a stable workforce in the construction industry by introducing measures to:
(i)    Secure wage resources for the improvement of worker treatment in the construction industry and their dissemination to subcontractors,
(ii)    Prevent the burden on contractors regarding labor costs by facilitating the smooth passing on of material price increases to contract prices, and
(iii)    Promote work style reforms and productivity improvements.
The amendments include several provisions that directly affect the contractual relationships between...To read the full article, please see the PDF file

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Authors

宇野 伸太郎

Shintaro is one of Japan’s leading experts on FIDIC and other construction-industry contracts. He specializes in international engineering and construction of infrastructure projects around the world, with a particular focus on Japan and Asia. He has extensive experience advising on a wide range of projects, including semiconductor plants, data centers, high-speed railways, highways, submarine cables, coal-mining process facilities, Mass Rapid Transit, high-rise buildings, lithium hydroxide plants, various types of power plants, tunnels, ports, dredging, offshore wind, and water treatment and supply facilities, with primary contracts based on the standard FIDIC contract forms (including Redbook, Yellowbook, Silverbook 1999 and 2017 version), Minkanrengo Building contract, Nikkenren Design Build and ENAA. On the contentious side, Shintaro has represented both employers and contractors in proceedings before Dispute Adjudication Boards, arbitral tribunals, and in the courts of various jurisdictions. .
Shintaro has been selected as a Leading Individual in the Construction: International category in Singapore for Chambers Asia-Pacific 2023 and 2024.
Regarding conflict and crisis management in Asia, he has handled numerous complex and difficult cases during his 13 years stationed in Southeast Asia, advising on risk analysis and response strategies based on the local situation. In particular, he has experience in handling over 60 litigation cases and criminal matters in Indonesia over the past 12 years, demonstrating his expertise in handling local disputes.

井浪 敏史

Satoshi INAMI

  • Counsel
  • Singapore

Satoshi has worked at N&A’s Singapore office since July 2022 and has provided Japanese clients with headquarters in Japan or Singapore and other clients with legal support on general corporate, labor, dispute resolution, and crisis management/compliance matters for their businesses operations in Southeast Asian countries.

Satoshi has also engaged in international construction and infrastructure projects and has advised on construction contracts, laws and regulations, and disputes in connection with projects in Japan and overseas.

村田 智美

Tomomi MURATA

  • Partner
  • Singapore

Having been stationed at the Hanoi office from 2016 to 2017 and subsequently at the Singapore office since 2019, Tomomi brings a wealth of experience in international construction and infrastructure projects. Her portfolio spans a diverse range of cases, encompassing all areas from negotiation and drafting construction contracts to handling issues arising during project execution, addressing construction disputes, and conducting regulatory research related to construction in both domestic and international projects.

Leveraging her experience in Singapore and Vietnam, she collaborates with qualified lawyers in various jurisdictions, contributing to her extensive expertise in construction projects across the Southeast Asian region. In addition, she actively holds seminars and in-house training sessions on FIDIC, one of the leading standard forms of contract for international construction.
Beyond her focus on construction and infrastructure, she provides broad legal advice on issues related to new investments, joint ventures, and labor matters in Southeast Asian countries, with a particular emphasis on Singapore, Malaysia, Indonesia, and Vietnam.