Systech continues to gain attention in Japan’s construction industry press, with recent features in the highly-regarded Japanese publication Kensetsu Tsūshin Shimbun.
 
In addition to an earlier article highlighting Systech’s support for Japanese contractors on overseas projects, follow-up pieces also co-authored by Regional Director, Shingo Ohno and Senior Consultant, Systech Law, Mark Grimes further examine the mounting pressures facing lump sum contracts - a method deeply embedded in Japan's construction sector.
 
The series of articles, titled The Frontline of Overseas Projects: Issues with Lump Sum Contracts and Alternative Contract Methods, explore how inflation, labour shortages, and global uncertainty are forcing a shift away from high-risk, fixed-price agreements. Systech experts Shingo and Mark argue that while lump sum contracts were once suited to stable economic conditions, today’s volatile environment is exposing their limitations. They point to alternatives such as cost-reimbursable, cost-plus-fee, and alliance contracts as more adaptive solutions for complex international projects.
 
Shingo shared that many international contractors are now either pricing lump sum projects prohibitively high or avoiding them altogether - leading to stalled negotiations and project cancellations. He stressed the importance of contract models that promote collaboration, transparency, and risk-sharing.

These perspectives build on Systech’s mission to support clients with deep contractual knowledge and global experience. With consultants across the world, including Tokyo, Systech offers services including contract and claims management, delay analysis, and dispute resolution - particularly valuable for Japanese firms navigating international markets.
 
As the global construction landscape evolves, Systech remains at the forefront of advising on contract strategy and risk mitigation, ensuring Japanese contractors remain competitive and protected on the world stage.
 
You can download and read the full articles in English and Japanese.