Japan Ministry reviews construction company evaluation systems

Japan's Ministry of Land, Infrastructure, Transport and Tourism has launched a working group to review and reform corporate evaluation systems within the construction industry. The group aims to modernize how companies are assessed, moving beyond current frameworks like the Management Matters Examination (Keishin) to better reflect modern business priorities.

The initiative seeks to incorporate metrics such as human capital investment, productivity improvements, digital transformation (DX) efforts, and improvements in worker treatment and wages. By doing so, the ministry hopes to create a market environment where companies that prioritize labor conditions and skill development are appropriately recognized and preferred by both private clients and job seekers.

The working group will conduct hearings with construction industry associations, private contractors, and labor market experts to identify gaps in current systems. The goal is to establish a comprehensive evaluation model that covers the entire construction market, including prime contractors and subcontractors, by the end of the fiscal year.