Sustainable Supply Chain

At Penta-Ocean Construction Group, we will conduct fair and equal transactions with our business partners including subcontractors and material suppliers on an equal footing and promote partnerships aiming for cooperation, coexistence and co-prosperity. Together with our business partners, we will strive to comply with laws and regulations, respect human rights, and incorporate environmental considerations to build a Sustainable Supply Chain (SSC).

To promote this idea with our business partners, we formulated and disclosed the Sustainable Supply Chain Policy and the Sustainable Supply Chain Guidelines by a resolution of the Board of Directors dated November 21, 2023.

Click here to view the Sustainable Supply Chain Policy and Guidelines

To support partner companies in advancing their work style reforms and securing future human resources, Penta-Ocean Construction has announced a declaration to build new partnerships by promoting collaboration and mutual prosperity with supply chain business partners and value-driven business operators.

The Declaration of Partnership Building is available here. (Japanese)

In May 2023, we added the formulation and promotion of strategies related to the Sustainable Supply Chain as new duties of the Sustainability Promotion Committee (Chairman: President, CEO and Representative Director), thereby clarifying the structure of our initiatives.

Starting in FY 3/25, initiative monitoring is conducted using a self-assessment questionnaire (SAQ) composed of specific questions based on the items of the Sustainable Supply Chain Guidelines (compliance with laws and regulations, fair transactions, respect for human rights, environmental protection, etc.).

[FY 3/24] Briefings on the Policy and Guidelines (for POC Group and Subcontractors, etc)

[FY 3/25] Monitoring of Business Partners' Initiatives

[FY 3/26] Ongoing Monitoring of Initiatives with an Expanded Scope

Penta-Ocean Construction Group promotes fair transactions by stipulating in its Sustainable Supply Chain Guidelines, which include principles such as "to conduct fair and equal business transactions with business partners" and "not to engage in unjust behavior such as abuse of dominant position towards business partners". Specifically, all executives and employees are thoroughly informed about fair transactions through training programs. In addition, we carry out an annual survey using a proprietary Fair Transactions Questionnaire for our business partners to verify whether price negotiations and price pass-through are being conducted appropriately, and whether they are not subject to unfair burden shifting. In the Price Negotiation Promotion Month Follow-up Survey (March 2025) conducted by Small and Medium Enterprise Agency, we received high evaluations of rate "A" for price negotiations and payment terms, and "B" for price pass-through. (A: the highest of four levels, B: the second-highest)

For initiatives on occupational health and safety together with partner companies please see here.

We support work style reforms of subcontractors and skilled workers by providing incentives for proper holiday acquisition, etc. in order to achieve two days off per week. We also improve payment conditions for subcontractors (termination of payments by promissory notes, payment in 100% cash), promote and support enrollment in the Construction Career Up System (CCUS^*), and provide allowances under the Excellent Foreman System (for CCUS members).

* Construction Career Up System: The system registers working record and qualifications of each skilled worker, enabling fair evaluation, quality improvement as well as productivity improvement at construction sites.

Labor Cost Adjustment in Holiday Acquisition for Skilled Workers

To help stabilize the income of skilled workers whose wages fluctuate based on the number of working days, and to raise awareness among skilled workers and subcontractors, we have implemented an initiative to provide premium compensation for labor costs to skilled workers who take more days off than the site-closure targets set at each site. This initiative was launched in July 2019 and has applied to all new orders received since then. Additionally, starting with the project that we newly received Starting with new orders received from July 2020 onwards, we have revised the correction factors upward, making the system easier to use and more comprehensive.

Practice of Making Cash Payment to Subcontractors

To strengthen the management base of subcontractors, promote social insurance enrollment, and support work style reforms at sites, all payments to subcontractors are made in cash. Starting with the new contract in July 2017, we have changed our payment methods for our subcontractors (including material suppliers) from the conventional payment by promissory notes (including payment using electronically recorded monetary claims, and payment on due date) to cash payment. In FY 3/19, the transition to cash payments was fully completed.

Notice regarding cash payment of construction fees and other payment conditions (Japanese)

Aiming at 100% Enrollment in Social Insurance Policy

In 2015, we created an "Internal Guideline for the Promotion of Social Insurance Subscription by Subcontractors" and are making company-wide efforts to ensure that all subcontractors are covered by social insurance. Regardless of whether it is public or private construction, we require primary partner companies to submit quotations that clearly indicate the breakdown of statutory welfare expenses, in order to ensure 100% social insurance coverage for workers. We obligate this submission to primary subcontractors, and, unless there are special circumstances, do not contract with companies that are not enrolled in social insurance.
As of FY 3/25, the social insurance coverage rate for primary subcontractors is 100%, and the social insurance coverage rate for workers is over 99%.

Promotion of Construction Career-Up System (CCUS) Registration

We regard the Construction Career Up System as an important infrastructure for improving the treatment of skilled workers, and to actively promote its implementation, we have made it mandatory to register CCUS onsite and install card readers at almost all public works and private construction projects worth 100 million yen or more.
To promote CCUS registration, we have been entrusted with registration operations by the Construction Industry Promotion Foundation, which operates the Construction Career Up System, and has established a system to handle everything from application reception to screening as a "registration support organization" on behalf of the operator. Although online application is the principle, we also accept paper applications and provide services tailored to the individual circumstances of applicants. In addition, we offer a free service to perform part of the registration work on behalf of applicants to reduce their burden. Furthermore, we provide detailed support such as answering questions and consultations by phone or email, and guidance on various procedures.

CCUS registration rate as of September 30, 2025

Integrated operation of our Construction Career Up System (CCUS) and Green Site (Japanese)