We work to increase added value across the supply chain by approaching other business partners through our direct business partners (from Tier N to Tier N+1), and we aim to build mutually beneficial relationships with business partners through cooperative efforts that go beyond existing business partners and company sizes. At the same time, we help partner companies implement teleworking and formulate business continuity plans (BCPs) from the perspectives of continuing business in the event of a disaster, and work-style reforms.

(Separate stipulation)

• In light of the "Voluntary Action Plan for Ensuring Fair Subcontracting and Order-Taking Activities" formulated by the Japan Federation of Construction Contractors, we ensure fair trade, strive to spread fair trade to partner companies, and provide support related to human resource development.

We observe desirable and customary practice when trading with new business partners and subcontractors (following the Promotion Standards based on the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises), and we actively work to correct trade practices and business customs that may hinder the development of partnerships with business partners.

(1) Methods to Decide Prices and Fair Subcontracting

We do not request unreasonable cuts to costs. We strive to build an equal contractor-subcontractor relationship and to achieve fair and transparent trade by making sure to follow correct steps based on the Guidelines for Compliance with the Construction Industry Law formulated by the Ministry of Land, Infrastructure, Transport and Tourism.

We conclude subcontract agreements, including decisions on transaction prices, in writing (as paper or electronic contracts) before the start of construction, while working in compliance with the Construction Business Act and other relevant laws and regulations to clarify contract details as a prime contractor, to prevent conflicts, and to mitigate one-sidedness. As a main contractor, we strive to conclude an agreement on terms that are satisfactory to both parties after deliberation with the subcontractor on equal footing.

(2) Terms of Payment of Subcontract Prices

When paying subcontract prices by cash and bill, we make sure to raise the percentage of cash and to pay labor costs by cash. When any notice related to promissory notes is revised, we review the terms of payment and other details accordingly.

(3) Intellectual Properties and Knowledge

We do not demand the conclusion of a one-sided non-disclosure agreement or exploit our trading advantage for the disclosure of knowledge or the voluntary conveyance of intellectual properties.

(4) Negative Effects Caused by Work-Style Reforms etc.

We do not request quick delivery of orders or make abrupt changes to specifications without bearing appropriate costs, so that subcontractors can also act toward work-style reforms. In the event of a disaster, we do not impose trade-related burden on subcontractors in a one-sided manner and, when resuming our business, we give as much consideration as possible to the continuation of partnerships.

(1) Securing the Next Generation of Workers

We strive to improve the treatment given to engineers and skilled workers, and to create a working environment and workplace that are comfortable to work in alongside subcontractors. Through these efforts, we seek to make the construction industry attractive, and thereby secure the next generation of workers.

(2) Boosting Productivity through Mechanization and Robotization, and Creating a Safe and Secure Working Environment

As the working population declines and grows older, we strive to improve productivity and create a safe and secure working environment through the mechanization and robotization of physically-demanding or dangerous tasks.