The construction company entered into a subcontract with Kawada Sakan, who conducts construction business without the required permit under Article 3, Paragraph 1 of the Building Business Act, in private-sector projects within Osaka City, in violation of the law.

The construction company violated the Act against Unjustifiable Premiums and Misleading Representations by failing to include its subcontractors A (primary subcontractor) and B (secondary subcontractor) in the construction management ledger and construction system diagram, in violation of Article 24-8, Paragraphs 1 and 4 of the Act. The company also did not attach copies of written subcontracting agreements (such as contracts) with subcontractors C, D, E, F, G, H, I, J, K, and L, as required by Article 19, Paragraphs 1 and 2 of the Act. Furthermore, the company neglected to prepare parts of the construction management ledger and system diagram, specifically omitting information such as the social insurance enrollment status of some workers engaged in the construction work, as stipulated in Article 14-2, Paragraph 1, Item 2, and Item 4 of the Enforcement Regulations of the Construction Business Act (Ordinance No. 14 of Showa 24), including the so-called 'worker roster'.