Redefining the Construction Norm: New Home Ordering Scheme 'THE BASE' Launches, Enabling Profitability at 15% Gross Margin

LIFE QUARTET Inc. (Headquarters: Tsu, Mie), which develops housing products for the residential and construction industry, has launched 'THE BASE,' a total solution to fundamentally transform the 'profit structure' of construction company management.

A launch event was held in Nagoya on April 21, 2026. The company advocated for a shift from the conventional 'family business' model of construction firms to 'corporations' strengthened by technology and systems, presenting a new standard for the architectural industry.

## Background: The Unavoidable Reality Facing the Construction Industry

Currently, bankruptcies in the construction industry have been increasing for four consecutive years, with soaring material costs and severe labor shortages pressuring management. In traditional custom-built housing, it has been the 'norm' for meeting man-hours to exceed 400 hours per building. As a result, a high-cost structure where profits do not remain even with a 30% gross margin has become chronic, pushing many construction firms to their limits.

LIFE QUARTET aims to solve this issue not through 'effort' but by changing the 'management structure.'

## The Impact of '15% Gross Margin' Achieved by 'THE BASE'

What 'THE BASE' proposes is not simple price reduction or specification cuts. By reducing meeting times from 400 hours to 130 hours—a '270-hour reduction'—through fully standardized housing, and by redesigning invisible costs from the ground up, it has established a model that can secure healthy operating profits even at a '15% gross margin.'

Five Structures Supporting Management

- Sales-Completed Model: A system where sales representatives can handle processes consistently without depending on design, eliminating losses from division of labor.
- Extensive Plan Lineup: Fully standardized housing that does not assume design changes. Management is stabilized with new 'weapons' (plans) updated monthly.
- Integrated Customer Attraction Scheme: The headquarters leads everything from ad management to LP design and user flow construction. Franchisees can focus on proposals and negotiations.
- Reproducible Ordering Scheme: Builds a logical sales process using AI-based negotiation analysis, without relying on sales talent.
- Optimization of Execution Budget: Secures profits by eliminating the need for unreasonable discounts through centralized material supply and process standardization by the headquarters.

## 'Payments Below Rent' and 'Overwhelming Product Strength' Chosen by Consumers

'THE BASE' not only helps the management of construction companies but also achieves a true 'win-win-win-win' situation by providing end-users with 'high-performance homes at an affordable price.'

- Premium Full Package: 18 high-performance features are all standard, including solar power generation, insulation grade 6 or higher, seismic resistance grade 3, vibration control dampers, and solid wood flooring.
- GX-Oriented Housing: Substantially reduces effective utility costs through energy creation and conservation. Enables a future-standard lifestyle with monthly payments 'below current rent.'
- Maintenance of Asset Value: Incorporates a design philosophy where the difference in maintenance costs becomes more apparent the longer one lives in the home, such as using galvanized steel sheets for exterior walls.

## From Construction Firms to a 'Future Industry'

'From family business to corporation. From construction firm to a future industry.' Our mission is to strengthen the small construction firms that previous generations have protected, making them entities that can be passed on to the next generation. We aim to redefine architecture with technology and systems, elevating it from a craftsman's world to a social infrastructure.

LIFE QUARTET will continue to strive to support the challenges of local construction companies so they can remain the leading players in creating the future.