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Check the source of the terms and conditions in the construction contract.
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When entering into a construction contract with a construction company,
the contract includes a set of terms and conditions. There are several
types of these terms and conditions, and it is very important to check
which one the construction company uses as a criterion for selecting a
company.
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Residential Construction Contract Terms and Conditions
(created by the Japan Federation of Bar Associations)
These terms and conditions , created by the Japan Federation of Bar Associations,
strongly emphasize consumer protection.
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Private Sector Alliance Agreement Construction Contract Terms and Conditions (created by seven industry organizations) These are not specifically for residential construction, and consumer protection is not as strongly emphasized as in the above terms and conditions.
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Most construction companies use the second type, created by the private sector alliance. We believe this is the industry standard. However, if you want to enter into a construction contract with the utmost caution, we recommend looking for a construction company that will undertake the work using the first type of contract terms and conditions. It is also best to confirm this with the construction company before they start providing estimates.
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| Ⅲ |
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Don't easily accept referrals to construction companies from real estate
agents or other sources!
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The reason is that a large amount of kickbacks generally flow from construction companies to real estate agents.
In other words, real estate agents will
not introduce a project (client) worth tens of millions of yen to a construction company for free.
Without the client's knowledge, sometimes nearly 10% of the construction cost
flows from the construction company to the real estate agent.
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Choose a construction company with qualified personnel.
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Having employees with qualifications such as first-class, second-class,
or wooden building architect licenses, or construction management engineer
licenses, provides greater peace of mind.
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| Ⅴ |
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Questions for construction companies
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Are you willing to lower the unit price after the quote has been submitted?
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At our company, we tell construction companies that if they're going to easily agree to a discount, they should just give us a low quote from the start. It's a waste of time to have two or three rounds of bidding competition.
Furthermore, some construction companies lower the quality of their workers when they offer discounts, which defeats the purpose. We hope that the price will be clear from a single quote. Of course, we understand that cost adjustments due to specification changes will be necessary.
It's a big mistake to think that a construction company is kind just because they agreed to a discount.
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I would like to get multiple quotes; is that possible?
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Whether it's technology or cost, competition is fundamental. I believe construction companies should also be prepared to accept multiple quotes. However, if there is a very strong relationship of trust, multiple quotes are not necessarily required.
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Will the construction company prepare the minutes of the meetings held
on-site
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It is only natural that the construction company should prepare the minutes of on-site meetings. By creating minutes, the details of the construction work can be organized and the work can be done efficiently. Our company will not entrust work to a construction company that cannot write meeting minutes.
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Can you create the construction drawings , such as the window frame drawings, traditional bathroom construction drawings , and wooden joinery and furniture drawings, as instructed in the contract drawings ?
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In addition to the contract drawings (working design drawings) created by the designer, there are also construction drawings created on-site. Some of these drawings are at a scale of about 1/10 to 1/2. These may be created by subcontractors of the construction company, but if they lack the ability to create construction drawings, their construction capabilities are also questionable.
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It's not enough to simply create construction drawings;
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the key point is whether the construction company presents these drawings to the client before construction begins.
Construction drawings allow you to confirm the construction procedures and details in advance. Conversely, construction companies that use sloppy procedures or methods will not create construction drawings. Or, even if they do, they won't show them to the client.
In our experience, when we asked a construction company, "Do you show the construction drawings to the client in advance?", they replied, "We show them to the design supervisor, but not to the client." In the end, we did not work with that construction company.
At our company, we always make sure to show the drawings to the client. Of course, there is a lot of technical content, and it is difficult for the client to understand all the details, but it is truly strange for a construction company to refuse to show the drawings to the client.
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Do you voluntarily conduct an annual inspection? How many years after completion
will the inspection take place?
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Simply conducting inspections is not enough. They must be done voluntarily. It's unacceptable if inspections are only carried out at the request of the building owner or architect.
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7
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Can you adhere to the construction schedule?
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While typical construction contracts specify compensation for delays, these amounts are usually very low in the case of residential construction. If you are renting, you should confirm whether the contractor will cover any extra rental costs before signing a construction contract.
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8
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It's a problem when a construction company's carpenters' skill levels aren't consistent, but are the carpenters permanently employed?
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Employing carpenters on a permanent basis means you have to pay them a salary even when there's no work, which increases costs. Conversely, if you don't employ them permanently, you have to find carpenters for each project, so the quality of work isn't consistent. Cost and quality are always proportional.
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9
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Do they proactively provide material samples and other materials? |
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The more efficiently a construction company performs its work, the more material samples it will present. Of course, at our company, we present most of the materials during the design phase and obtain the client's approval. However, we believe it is our duty as a contractor to reconfirm with the client on-site as well. We believe that this is what responsible construction entails.
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How many times a month does the president of a construction company visit
the construction site?
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Sometimes, during the sales phase, the president actively attends meetings, but once the contract is finalized, suddenly only inexperienced young employees show up. It's strange. Of course, it wouldn't be a problem if such an explanation was given beforehand.
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When there are many construction sites , how many sites does a site supervisor
typically manage at once?
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For a construction project with a budget of around 20 million yen, it wouldn't be surprising to see a contractor juggling three projects at once. However, there are also construction companies that assign only one supervisor to each project within a reasonable timeframe. I would prefer to entrust my work to such a company.
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Is the president of the construction company from
a sales background or a construction site management background?
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| 13 |
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Would it be possible to visit the construction site while it's still under
construction?
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 If there's a suitable construction site, most construction companies will allow you to visit. While it might be difficult for the average consumer to judge a construction site, a reputable company will have workers who greet you properly, and the site will be clean and well-organized.
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Before signing the construction contract , could you please introduce the
construction site manager and their work history?
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Before signing a construction contract, it's important to thoroughly inquire about the background of the on-site manager.
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| 15 |
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Please check the insurance details for the construction work.
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This is to confirm whether the construction company is taking measures in accordance with the Act on Ensuring the Fulfillment of Specific Housing Defect Liability, etc., in order to protect clients and buyers of newly built homes.
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Check the financial structure |
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There are various methods, such as directly requesting financial statements from the construction company, commissioning an investigation by a credit rating agency, or viewing the financial statements included in the construction business license documents at the prefectural government office, but it is necessary to check the financial status of the company before placing an order for construction work. Even if the measures taken in item 15 above are taken and the construction company goes bankrupt, and the losses are covered, a construction company with a poor financial structure may be slow to respond. The most troublesome situation is when a construction company is not bankrupt, but is slow to respond.
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What is the main focus of your work (construction)? Is it
single-family homes, shops, public works, or private construction?
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It's definitely safer to choose a construction company that primarily works on detached houses. Construction companies that mainly handle public works projects raise concerns about after-sales service. This is because, ultimately, they have the loophole of being able to circumvent any disputes on private projects by referring to them as public works.
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We don't just hand over the entire construction work to subcontractors.
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Sometimes, construction companies completely outsource the entire construction work to subcontractors. While this is legal for private construction projects with the homeowner's consent, I still wouldn't want to entrust my project to a construction company that does this.
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