About demand for penalty for contractor of steel bridge superstructure work ordered by Japan Highway Public Corporation
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- About demand for penalty for contractor of steel bridge superstructure work ordered by Japan Highway Public Corporation
September 12, 2006
East Nippon Expressway Co., Ltd.
Central Japan Expressway Co., Ltd.
West Japan Expressway Co., Ltd.
Japan Expressway Holding and Debt Repayment Agency
NEXCO EAST, NEXCO CENTRAL and NEXCO WEST and Japan Expressway Holding and debt repayment mechanism today paid a surcharge from the Fair Trade Commission in violation of the Antimonopoly Act. We would like to inform you that we have received a order and have requested a penalty based on the penalty clause in the case of misconduct such as rigging against 25 companies, such as Yokogawa Bridge Co., Ltd., whose order has been confirmed.
In addition, penalties relating to contracts under construction for which the contract amount has not been fixed are not subject to this bill, and we plan to separately charge after confirming the contract amount.
It should be noted that this time of the penalty billable work, all, Japan Highway Public Corporation is ordered, the 25 but is the construction work has entered into a business with the contract, has succeeded to the contractual status relating to the contract from the corporation NEXCO EAST, NEXCO CENTRAL and NEXCO WEST and Japan Expressway in ownership and debt repayment mechanism, we used to go a penalty claim as follows.
1 Overview
Regarding the above 25 businesses, the Japan Fair Trade Commission issued an order for payment of surcharge on March 24, this year, as a violation of the Antimonopoly Act (from April 1, 2002 to March 31, 2005 at the latest). Done and confirmed
For this reason, based on the penalty clause (*) of the construction contract contract, we decided to charge each company as a penalty of 10% of the contract amount.
2 Billing details
We charged about 2.3 billion yen to 25 businesses. (Total of NEXCO EAST, NEXCO CENTRAL and NEXCO WEST, and Japan Expressway Holding and Debt Repayment Organization)
In addition, the details of target company and billing amount are Appendix [PDF: 50KB] It is as follows.
3 Payment deadline
September 29, 2006
- The penalty clause will be decided by the Japan Highway Public Corporation from the contract contract for the construction of which the bidding procedure started on June 10, 2003 or later. In addition, we are considering applying for damages compensation for construction work subject to an order to pay a surcharge for which a penalty clause has not been executed.
(Reference 1) Background
| June 29, 2005 | Regarding the steel bridge superstructure construction ordered by the Japan Highway Public Corporation, the Fair Trade Commission accused three companies of criminal charges for a bid rigging. |
|---|---|
| August 1, 2005 | Tokyo High Public Prosecutor's Office prosecuted 6 bridge manufacturers and 5 people for violating the Antimonopoly Act. |
| September 29, 2005 | The Fair Trade Commission recommends that 45 bridge manufacturers be excluded for violating the Antimonopoly Act. (5 of them do not comply by the compliance deadline) |
| March 24, 2006 | The Fair Trade Commission issued an order to pay a surcharge to 43 bridge manufacturers. |
| September 12, 2006 | NEXCO EAST, NEXCO CENTRAL and NEXCO WEST, and the Japan Expressway Ownership and Debt Repayment Organization charge a penalty to 25 companies. |
(Reference 2) Penalty clause of construction contract
[Construction contract description applied between June 10, 2003 and March 31, 2005]
(Penalty for illicit acts such as rigging)
Article 45-2
If you (in the case of a joint venture, its members) fall under any of the following cases, you will be requested to pay the contract amount (after the conclusion of this contract, the contract amount after the conclusion of this contract). If there is a change, the amount equivalent to 1/10 of the contracted amount after the change) must be paid as a penalty within the period specified by us.
(I) With respect to this contract, the second party violates the provisions of Article 3 of the Act on Prohibition of Private Monopoly and Ensuring Fair Trade (Law No. 54 of 1947), or Due to the violation of the provisions of Article 8, Paragraph 1, Item 1 of the Act, the Fair Trade Commission will notify the Company based on the provisions of Article 48-2, Paragraph 1 or Article 54-2, Paragraph 1 of the same law. When the levy payment order is issued and the payment order is confirmed.
(Ii) With regard to this contract, Article 96-3 of the criminal law of the second party (or its officer or employee in the case of a corporation) (Law No. 45 of Meiji 40) or the Act on Prohibition of Private Monopoly and Ensuring Fair Trade When the sentence set forth in Article 1 is confirmed.
(Collection of compensation, etc.)
Article 51
If Party B does not pay compensation, damages or penalties based on this contract within the period specified by Party A, Party A shall pay the contract amount from the day after the period specified by Party A for the amount not paid. The interest-bearing amount calculated at a rate of 5% per year until the day is offset by the contract amount payable by us, and if there is still a shortfall, it will be collected.
2 In the case of the additional collection in the preceding paragraph, Party A will collect the late payment amount calculated from the second party at the rate of 5% per year for the number of days late.
Attached table Penalty charge list according to company [PDF: 50KB]
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