K.K. BUDDY

The construction company contracted with Kabushiki Kaisha Up Ota, a construction business other than the designated primary contractor, for private works in Osaka City, with subcontracting payments exceeding the amount specified by government ordinance under the Construction Business Act. Also, during the project, the company violated Article 26 by not assigning persons responsible for technical management of construction work until the framework was completed, and did not perform planning, schedule management, quality control, safety management, or technical guidance, instead subcontracting the main building work to the construction company. The construction company also violated Article 22 by unilaterally subcontracting the entire construction work to Kabushiki Kaisha Up Ota. Furthermore, it violated Articles 26 and 15 by assigning a designated technical officer from its office as the chief technician at the site, and after their resignation, replaced them with an employee from another company, thus failing to meet qualification requirements due to lack of direct and permanent employment. Additionally, the company contracted with Kabushiki Kaisha T-Cube, which operates as a construction business without the necessary permit for carpentry work, in violation of Article 3, Paragraph 1 of the Construction Business Act.

The revision of the Construction Business Act (Act No. 55 of 2014), which established new demolition business regulations, included a transitional measure that treated technicians of pre-existing demolition and earthwork contractors as demolition contractors until June 30, 2021. This transitional measure has now ended. Consequently, as of that date, the entity no longer meets the standards listed in Article 15, Paragraph 2 of the Construction Business Act.