Sansan Conducts Survey on the 'Actual State of Affairs Three Months After the Enforcement of the Act on Promoting Fair Subcontracting Transactions'
Sansan has released the results of a survey on the actual situation three months after the enforcement of the Act on Promoting Fair Subcontracting Transactions for small and medium-sized enterprises.
Sansan, Inc., a provider of AX services that transform work styles, has conducted a survey titled 'Survey on the Actual State of Affairs After the Enforcement of the Act on Promoting Fair Subcontracting Transactions' (hereinafter 'the Act'). The survey targeted 886 individuals, including 743 contractors (employees working for small and medium-sized enterprises handling subcontracted work) and 143 ordering parties (legal department staff at companies subject to the Act), to clarify the status of corporate responses three months after the Act's enforcement in January 2026.
The survey results reveal that for 60% of contractors, price negotiations have not increased since the Act's enforcement. Among companies where negotiations did increase, 'ensuring access to contracts and purchase orders' was cited as the most important initiative. Furthermore, while 90% of ordering parties are working toward compliance, approximately 60% face challenges in identifying small and medium-sized contractors, highlighting remaining issues.
■ Background of the Survey
On January 1, 2026, the 'Subcontract Act' was amended and enforced as the 'Act on Promoting Fair Subcontracting Transactions' to regulate unfair trade practices by ordering parties. The Act mandates that ordering parties clearly state transaction terms in writing. The scope was expanded by adding an employee-count criterion to the existing capital-based criteria. Additionally, the Act prohibits unilateral price setting by ordering parties, supporting small and medium-sized contractors in achieving price pass-throughs.
■ Survey Summary
- While over 40% of contractors saw an increase in price negotiations, 60% did not see an increase in opportunities.
- Over 60% of respondents identified 'ensuring access to contracts and purchase orders' as the most important factor for promoting price negotiations.
- Over 70% of contractors have experienced hesitation in price negotiations due to not having contracts or purchase orders on hand, and about 20% have experienced incorrect transactions due to not grasping contract changes.
- About 60% of ordering parties face challenges in 'identifying target companies,' with 'individual collection of corporate information' being the most common reason.
■ Comment from Masatsu Obana, Executive Officer and General Manager of the Contract One Unit at Sansan, Inc.
'The Act requires transaction details to be clearly stated in writing to ensure transparency and fairness. However, as this survey makes clear, it is difficult to promote price negotiations or ensure compliance if the front lines cannot grasp the latest contracts and the history of transactions. Furthermore, from a compliance perspective, challenges remain in accurately identifying contractors. To address these issues, 'Contract One' provides an environment where contract details and corporate information can be utilized for transactions. By digitizing documents and linking them, we help companies visualize the entire transaction history and streamline the identification of small and medium-sized contractors.'
The survey results reveal that for 60% of contractors, price negotiations have not increased since the Act's enforcement. Among companies where negotiations did increase, 'ensuring access to contracts and purchase orders' was cited as the most important initiative. Furthermore, while 90% of ordering parties are working toward compliance, approximately 60% face challenges in identifying small and medium-sized contractors, highlighting remaining issues.
■ Background of the Survey
On January 1, 2026, the 'Subcontract Act' was amended and enforced as the 'Act on Promoting Fair Subcontracting Transactions' to regulate unfair trade practices by ordering parties. The Act mandates that ordering parties clearly state transaction terms in writing. The scope was expanded by adding an employee-count criterion to the existing capital-based criteria. Additionally, the Act prohibits unilateral price setting by ordering parties, supporting small and medium-sized contractors in achieving price pass-throughs.
■ Survey Summary
- While over 40% of contractors saw an increase in price negotiations, 60% did not see an increase in opportunities.
- Over 60% of respondents identified 'ensuring access to contracts and purchase orders' as the most important factor for promoting price negotiations.
- Over 70% of contractors have experienced hesitation in price negotiations due to not having contracts or purchase orders on hand, and about 20% have experienced incorrect transactions due to not grasping contract changes.
- About 60% of ordering parties face challenges in 'identifying target companies,' with 'individual collection of corporate information' being the most common reason.
■ Comment from Masatsu Obana, Executive Officer and General Manager of the Contract One Unit at Sansan, Inc.
'The Act requires transaction details to be clearly stated in writing to ensure transparency and fairness. However, as this survey makes clear, it is difficult to promote price negotiations or ensure compliance if the front lines cannot grasp the latest contracts and the history of transactions. Furthermore, from a compliance perspective, challenges remain in accurately identifying contractors. To address these issues, 'Contract One' provides an environment where contract details and corporate information can be utilized for transactions. By digitizing documents and linking them, we help companies visualize the entire transaction history and streamline the identification of small and medium-sized contractors.'