Construction Business Act Enforcement Actions in Japan

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Toyo Techno Co., Ltd. was issued a disciplinary order by the Kanto Regional Development Bureau on July 24, 2026, for violations related to construction safety laws following a fatal accident on March 20, 2024, during a construction project for the Hokkaido Shinkansen in Nagamappu, Hokkaido. The company failed to establish necessary safety procedures for unloading rebar baskets exceeding 100 kg, which contributed to the accident. The company and one employee received fines of 200,000 yen each for violations of the Industrial Safety and Health Act, and the case is recognized as a violation of Article 28, Paragraph 1, Item 3 of the Construction Business Act.

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The former employee of Keiyo Gas Energy Solution Co., Ltd. was convicted of obstructing public contract proceedings related to a water pipe project in Ichikawa City, Chiba Prefecture, and received a summary order of a fine of 800,000 yen on July 3, 2025. As a result, the company is subject to a business suspension order under the Construction Business Act from August 8 to October 6, 2026.

The company, Obayashi Corporation, was issued a summary order on March 24, 2026, for violations of the Industrial Safety and Health Act related to false statements made during an investigation into a workplace accident. This violation falls under Article 28, Paragraph 1, Item 3 of the Construction Business Act.

The Saitama Prefecture authorities suspended the construction business license of Tobu Civil Engineering Co., Ltd. on July 24, 2026, due to violations of the Construction Business Act, specifically for engaging in multiple substantial construction projects after ceasing operations on July 25, 2024, contrary to legal requirements.

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The Osaka Prefectural Government has revoked the construction business license of Sanwa Service Co., Ltd. due to the criminal convictions of its director for violations of the Penal Code and the Stimulant Control Law.

The construction company 'Job Co., Ltd.' and its director were fined 200,000 yen each for violations of the Labour Safety and Health Law related to safety equipment at a construction site in Osaka. The violations occurred on February 21, 2025, and the fines were confirmed on March 6, 2026.

The Osaka Prefecture has revoked the construction business license of Hatsuda Setsubi Kogyo Co., Ltd. due to a criminal conviction of its director for a fine of 400,000 yen, confirmed on June 18, 2025.

The director of Ayano Construction Co., Ltd. was fined for violating waste disposal laws and received a suspension order under the Construction Business Act by Okayama Prefecture.

The Hokkaido authority revoked the construction license of Shiraishi Kensetsu Kabushiki Kaisha on July 21, 2026, due to the previous CEO being found to meet disqualification criteria under the Building Business Act Articles 8 and 12, which also applies under Article 29(1)(2).

On January 11, 2024, Zero Next Corporation was instructed by Kanagawa Prefecture for violating the Construction Business Act by contracting work beyond the scope of minor construction as defined by law, which constitutes a violation under Article 28, Paragraph 2, Item 2 of the Act.

The company, 株式会社 竹延, was ordered to cease operations for 10 days by the Kinki Regional Development Bureau due to contracting subcontract work outside the scope of their construction license, violating the Building Business Act Article 28, Paragraph 1, Item 6.

The company Oshima Co., Ltd. was ordered to cease operations for seven days by the Kyushu Regional Development Bureau due to violations of the Construction Business Act, including operating without proper permits and exceeding the scope of minor construction work in subcontracting within Saga Prefecture.

岩手県は、下舘建設株式会社に対し、建設業法第28条第1項第3号に基づき指示を行った。これは、同社従業員が安全措置を怠り、労働安全衛生法違反により罰金判決を受けた事案に関するものである。

The company, 株式会社コバテクノロジー, was found to have entered contracts exceeding the scope of minor construction work without the necessary permits under the Building Business Act in multiple private projects within Shizuoka Prefecture. This constitutes a violation of Article 3, Paragraph 1 of the Act and falls under Article 28, Paragraph 2, Item 2 of the same law.

JR Kyushu Engineering Co., Ltd. was found to have contracted subcontractors for mechanical equipment installation work in Oita Prefecture without the necessary construction business license, exceeding the scope of minor construction work as defined by law. This is recognized as a violation under Article 28, Paragraph 1, Item 6 of the Construction Business Act.

On May 13, 2025, Nakagawa Kiso Kogyo Co., Ltd. was ordered by Hokkaido authorities to cease certain construction activities after a fatal accident involving a drag shovel at a site in Kitahiroshima. The company was found to have violated safety regulations by not establishing an appropriate work plan considering terrain and geological conditions, leading to a worker’s death. The company and its officers were fined by the Sapporo Summary Court. This action was based on violations of the Construction Business Act and the Industrial Safety and Health Act.

In 2026, the company and its officers were fined for violating the Industrial Safety and Health Act by providing false reports regarding a workplace injury incident, which is considered a violation under the Construction Business Act Article 28, Paragraph 1, Item 3.

The Osaka Prefecture revoked the construction business license of Daiwa Corporation after it was dissolved due to bankruptcy on December 15, 2023.

The former director of Kabushiki Kaisha Fukazawa Denso was convicted of obstructing public procurement processes related to a construction project in Katagami City, Akita Prefecture, and received a summary fine on May 27, 2026. As a result, the company is subject to a one-year suspension of construction-related business activities involving public works, from July 25, 2026, to July 24, 2027, by order of Akita Prefecture.

The Tokyo Metropolitan Government issued a business suspension order to Japan 3D Printer Co., Ltd. for operating without the necessary construction license and entering into contracts exceeding the statutory amount without approval, violating the Building Business Act Articles 3 and 28. The suspension covers all construction business activities from July 27 to July 30, 2026.

The Tokyo Metropolitan Government has suspended the construction company, Sugasawa Komuten Co., Ltd., for violating the Building Business Act by entering into contracts exceeding the statutory amount without proper authorization for painting work, which constitutes grounds for suspension under the law.

Tokyo Metropolitan Government imposed a business suspension on Urban Corporation for violating the Building Business Act by contracting electrical work without proper permits and exceeding the contract amount limit.

The Tokyo Metropolitan Government has suspended the business operations of Taisho Home Co., Ltd. for three days from July 27 to July 29, 2026, due to violations of the Construction Business Act.

Tokyo Metropolitan Government has ordered a business suspension for Hashimoto Kogyo Co., Ltd. due to violations of the Construction Business Act, specifically for contracting construction work exceeding the statutory amount without proper licensing. The suspension covers all construction business activities from July 27 to July 29, 2026.

The Tokyo Metropolitan Government has ordered a business suspension for KAWAGUCHI NOGUCHI SAKAN KOGYO LLC due to violations of the Construction Business Act, specifically for contracting electrical work without proper permits and exceeding the contract amount limits.

The director of Ueda Construction Co., Ltd. was convicted of violating the Waste Management and Public Cleansing Law (Law No. 137 of 1970) and sentenced to a fine of 500,000 yen by the Kashiwa Summary Court, with the sentence finalized on April 3, 2026. This violation falls under Article 28, Paragraph 1, Item 3 of the Construction Business Act. As a result, the Hyogo Prefecture has suspended the company's business operations, including prohibiting the company's officers from engaging in business during the suspension period.

Tokyo authorities suspended the business license of株式会社アルセットサービス for violating the Construction Business Act by entering into contracts exceeding the permitted amount without proper authorization.

The Kinan Pipework Cooperative was revoked its construction business license by Wakayama Prefecture on July 13, 2026, due to a criminal conviction of a director under the Penal Code Article 208, which is grounds for license cancellation under the Construction Business Act Article 29, Paragraph 1, Item 2.

The Tokyo Metropolitan Government has imposed a business suspension on Yugen Kaisha Kobo-sha for violating the Construction Business Act by contracting subcontractors without proper permits in multiple private projects within Hokkaido.

Tokyo Metropolitan Government issued a business suspension order to Family Workshop Inc. for operating without the necessary construction permits during multiple private projects in Tokyo, violating the Building Business Act. The suspension covers all construction activities from July 27 to July 30, 2026.

The Tokyo Metropolitan Government has ordered a business suspension for Toyota Housing Co., Ltd. due to violations of the Construction Business Act, specifically for contracting electrical work without proper permits in private projects within Tokyo.

The Tokyo Metropolitan Government has suspended the operations of ITEC Home Corporation for four days from July 27 to July 30, 2026, due to violations of the Construction Business Act by entering into contracts exceeding the statutory amount without proper licensing.

The Tokyo Metropolitan Government revoked the construction business license of Kabushiki Kaisha Aiwa due to inability to confirm the location of its main office, with no objections filed within 30 days of public notice, in accordance with Article 29-2, Paragraph 1 of the Construction Business Act.

The Tokyo Metropolitan Government revoked the construction business license of MARISS Corporation due to the inability to confirm the location of its business office, with no objections filed within 30 days of public notice, in accordance with Article 29-2, Paragraph 1 of the Construction Business Act.