#Japan #Tokyo #Consultation #Direct Contracting #apartment renovation

Free Consultation Sessions on Direct Contracting for Apartment Renovations

The General Incorporated Association for Large-Scale Apartment Renovations is excited to announce two free consultation sessions regarding large-scale renovation projects that will be held in Chofu City on July 11 and in Mitaka City on August 29. This event aims to enlighten apartment management associations about the direct contracting method for renovations, bypassing costly consulting firms.

In mid-June, approximately 40 companies, including consulting and construction firms, were implicated in a suspected collusion case concerning renovation costs. It was reported that the Japanese Fair Trade Commission is poised to impose a penalty of around 1.6 billion yen on these companies for artificially inflating repair costs.

Traditionally, the renovation process has relied on either the design supervision method or the responsibility construction method, both of which often include consultancy involvement. However, even with the responsibility construction method, kickbacks from recommended contractors to management companies lead to hidden cost increases for the repairs. This phenomenon is a direct result of the complex subcontracting structure prevalent in the industry.

Given the recent allegations surrounding the design supervision method as a potential breeding ground for collusion, apartment management associations are being compelled to reassess which construction method to adopt. Moreover, ongoing global situations like the "Naphtha Shock" are expected to further escalate renovation costs due to a rise in the prices of construction materials, alongside increasing labor costs driven by a workforce shortage.

Consequently, it is crucial for management associations to prepare more meticulously than ever for their long-term renovation plans. In response, the General Incorporated Association for Large-Scale Apartment Renovations proposes a direct contracting method that eliminates unnecessary fees to management companies entirely.

During the free consultation session, seasoned apartment management professionals, skilled in implementing many projects through the direct contracting method, will provide insightful explanations on its advantages.

Event Details

July - Chofu City

• - Date: Saturday, July 11
• - Time: 10:00 AM – 11:00 AM
• - Location: Chofu City Cultural Hall, Room 304
• - Address: 2-33-1 Kojima-cho, Chofu City, Tokyo, 182-0026
• - Access: 4-minute walk from Chofu Station (Keio line, Hiroba Exit)
• - Access Link

Sponsored by:

Seiwa Co., Ltd., General Incorporated Association Ikebukuro Apartment Support Center, Comtech Co., Ltd., Niikura Home Co., Ltd., and Kohyodai Industry Co., Ltd.

August - Mitaka City

• - Date: Saturday, August 29
• - Time: 10:00 AM – 11:00 AM
• - Location: Musashino City Kataraimi Michi Citizen Space, Room 1
• - Address: 1-11-16 Nakacho, Musashino City, Tokyo, 180-0006
• - Access: 3-minute walk from Mitaka Station (JR, North Exit)
• - Access Link

Sponsored by:

Seiwa Co., Ltd., General Incorporated Association Ikebukuro Apartment Support Center, Comtech Co., Ltd., Niikura Home Co., Ltd., and Kohyodai Industry Co., Ltd.

Registration

To participate, please visit our website to sign up:

• - Free Consultation Registration

The General Incorporated Association for Large-Scale Apartment Renovations conducts free informational sessions monthly. If you are interested in learning more about large-scale renovations in the San-Tama area, we invite you to take advantage of this opportunity.

Topics Discussed

• - Reasons for insufficient renovation reserve funds and industry challenges.
• - Pros and cons of traditional renovation methods like design supervision and responsibility construction.
• - How the direct contracting method can alleviate the burden on the management association.
• - Smart strategies for advancing large-scale apartment renovations.
• - How to select construction companies and apartment management professionals effectively.
• - Open Q&A session with apartment management professionals.

This is a prime opportunity to hear directly from seasoned apartment management professionals, exclusively available in the San-Tama area. We encourage you to make the most of these free consultation sessions.

Areas Covered

The San-Tama region encompasses cities such as Mitaka, Chofu, Fuchu, Kodaira, Kokubunji, Kunitachi, Nishitokyo, Hachioji, Hino, Tama, Tachikawa, Inagi, Kogeini, and Komae.

Upcoming Sessions

We have additional sessions scheduled for September in Inagi City, October in Kokubunji City, and November in Tachikawa City. Please check our website for more details.

• - Future Event Details

About Direct Contracting

The direct contracting method proposed by the General Incorporated Association for Large-Scale Apartment Renovations signifies a genuine engagement between apartment management associations and construction companies. This model avoids any intermediary fees, ensuring clarity of responsibilities and guaranteeing construction quality. Additionally, various systems are available to minimize the workload on the management association. This solidifies a safe and reliable contract engagement.

About Apartment Management Professionals

Tomoko Goto

• - Founder, TH. Life Planning Labor Management Office
• - Apartment Management Professional & Licensed Social Insurance Labor Consultant
• - Second-Class Architect
• - Certified Apartment Advisor by the Tokyo Disaster Prevention & Architecture City Planning Center
• - Certified Apartment Management Professional by the Tokyo Apartment Management Professionals Association.

With extensive hands-on experience in real estate, architecture, and labor management, Tomoko has been engaged in leasing and property management and has later specialized in apartment renovations and new building designs. After establishing her own office in 2011, she has since worked as an external manager focusing on supporting management associations, large-scale renovations consulting, and managing delinquency cases.

About the General Incorporated Association for Large-Scale Apartment Renovations

In Japan, multiple challenges are emerging around large-scale renovations, owing to an increase in aging apartments, soaring material costs, labor shortages, and serious reserve fund shortfalls driven by collusion within the industry. Additionally, the "Naphtha Shock" indicates a notable surge in repair costs is unavoidable. The exposure of the design supervision method as a potential collusion facilitator further complicates the situation. Thus, the General Incorporated Association proposes a direct contracting strategy assuring quality at fair prices without added margins from management companies. The intent is to promote wise usage of reserve funds while extending the lifespan of apartments, thus protecting property values through the direct contracting method, a strategy exclusive for apartment management associations in the San-Tama region.

Please note that participation from competing agencies and consulting companies is not permitted.