[First in Japan] Legal Compliance Confirmed for Both Real Estate and Construction Sectors with a Single Service

PICK Co., Ltd. (Headquarters: Minato-ku, Tokyo; President & CEO: Tatsuya Fuke) announced that it has obtained a response from relevant ministries confirming that its e-contract service "PICKFORM e-contract" complies with the technical standards stipulated in Article 13-4, Paragraph 2 of the Enforcement Regulations of the Construction Business Act, by utilizing the "Gray Zone解消制度" (Gray Zone Elimination System) based on the Act on Strengthening Industrial Competitiveness.

This confirms that our service can be legally used for both real estate transactions and construction contracts.

Furthermore, it is the first e-contract service in Japan*1 to have obtained responses regarding legal compliance in both the real estate and construction contract sectors.

About the Gray Zone解消制度

The "Gray Zone解消制度" is a system based on the Act on Strengthening Industrial Competitiveness that allows businesses to confirm in advance whether existing regulations apply, enabling them to proceed with new business activities with peace of mind, even when the scope of application of current regulations is unclear.

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* Reference: Ministry of Economy, Trade and Industry "About the Gray Zone解消制度"

https://www.meti.go.jp/policy/jigyou_saisei/kyousouryoku_kyouka/shinjigyo-kaitakuseidosuishin/

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Inquiry Details

An inquiry was made using the Gray Zone解消制度 to confirm that the e-contract flow provided within the "PICKFORM e-contract" service complies with the technical standards stipulated in each item of Article 13-4, Paragraph 2 of the Enforcement Regulations of the Construction Business Act.

About the Response Letter

In response to the aforementioned inquiry, the Ministry of Land, Infrastructure, Transport and Tourism confirmed that the technical standards stipulated in Article 13-4, Paragraph 2 of the regulations are met, and a response letter was published.

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Response Letter

https://www.meti.go.jp/policy/jigyou_saisei/kyousouryoku_kyouka/shinjigyo-kaitakuseidosuishin/press/260403_yoshiki_p.pdf

METI Website (Examples of Gray Zone解消制度 Utilization) *Response letter published

https://www.meti.go.jp/policy/jigyou_saisei/kyousouryoku_kyouka/shinjigyo-kaitakuseidosuishin/result/gray_zone.html

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Background

While the use of e-contracts in real estate transactions has been progressing due to legal reforms, for construction contracts, the interpretation and operation of e-contract use have been left to individual businesses, leaving practical uncertainties.

In particular, there has been a continuous lack of clear organization regarding compliance with the technical standards required by the Enforcement Regulations of the Construction Business Act (e.g., ability to output documents, anti-tampering measures, identity verification measures).

Details of This Confirmation

Our company utilized the Gray Zone解消制度 to inquire whether our service meets the technical standards under the Enforcement Regulations of the Construction Business Act.

As a result, it was concluded that our service meets these standards from the following perspectives:

Electronic data of contracts can be viewed and printed.

Anti-tampering measures are in place through electronic signatures and timestamps.

Electronic signatures are performed based on identity verification procedures.

Significance of This Acquisition

This response clarifies that with PICKFORM, e-contracts for both real estate transactions and construction contracts can be legally completed on a single service.

Traditionally, companies engaged in both real estate and construction businesses faced challenges such as the need to use different systems for each contract type, leading to fragmented operations.

"PICKFORM e-contract" enables seamless management and conclusion of these contracts within a single service, providing an environment where contract operations can be completed without switching between multiple services.

Especially for companies with functions in both the real estate and construction industries, this service contributes to the centralization of contract operations and the reduction of operational burden.

Service Features

"PICKFORM e-contract" is an e-contract service that allows the entire contract conclusion process for real estate transactions and construction contracts to be completed online.

Electronic signature using public-key cryptography (RSA-2048bit)

Timestamping by certified providers

Signature flow including identity verification process

Contract viewing, saving, and printing functions

These functions enable contract conclusion that meets the technical standards required by law.

Significance for the Industry

This initiative resolves the uncertainties that remained in e-contracts in the construction industry.