SCSK Adds JV Management Function to PROACTIVE Construction for Construction Industry Joint Ventures

SCSK Corporation announced the launch of a new JV management function for “PROACTIVE Construction,” a construction industry solution under its AI-native next-generation ERP “PROACTIVE.” The new function is designed to streamline management operations for joint ventures formed when multiple companies jointly receive large-scale construction contracts. The function enables centralized system management of complex JV-specific tasks, including ownership ratio management among JV member companies, fund management, allocation of construction costs and revenue, and settlement processing between participating companies. SCSK says the feature will improve the efficiency of large-scale project management and enhance financial management for construction companies. In the construction industry, JV structures are widely used for large public works and infrastructure projects. As construction investment expands and the number of JV projects increases, companies are seeking digital mechanisms to operate long-established JV practices more efficiently and accurately. While JVs allow multiple companies to invest and carry out construction jointly, enabling large-scale project execution and risk sharing, they also create challenges such as complex fund management and profit-and-loss allocation based on ownership ratios, cumbersome allocation of construction costs and sales, increased settlement workloads between member companies, and operational burden and control risks from individual management using tools such as Excel. The new “PROACTIVE Construction JV Management Function” centrally manages the full JV operation process, from JV formation, including registration of each company’s role and ownership ratio, to daily fund, cost and revenue management, and final settlement between member companies. This allows companies to improve the efficiency of complex JV management tasks and accurately understand project profitability in real time. The function also supports accounting processes compliant with Japan’s Ministry of Land, Infrastructure, Transport and Tourism guidelines for joint venture operations. It systematizes construction-specific settlement practices such as fund contributions and distributions based on ownership ratios, as well as offsetting JV advance payments and deposits between companies, providing a management environment aligned with industry practices. Key features include JV formation management, which registers member companies and ownership ratios for each JV project and automates fund management and profit-and-loss allocation; JV fund management, which manages capital contributions and distributions while visualizing cash flows; work-in-progress accounting for JV construction, which manages WIP based on purchase invoices, expenses, labor costs and payment records; and JV profit-and-loss recognition and settlement management, which handles revenue recognition, profit-and-loss management and settlement processing between member companies according to construction progress or completion. SCSK will continue expanding PROACTIVE Construction to support digital transformation in the construction industry. With the new JV management function, the company is strengthening support not only for housing and renovation areas it has traditionally covered, but also for large and complex construction projects involving multiple companies. SCSK aims to support faster management decisions based on accurate and timely financial information, while using AI-powered analysis to assist executive decision-making and advance project and business management. PROACTIVE Construction is a renewed version of SCSK’s long-running PImacs series and supports a broad range of construction business areas, including specialty construction, housing, renovation and corporate construction. It integrates construction project processes from estimation, contracts, execution budgets and ordering to construction, billing, payment collection and revenue recognition. PROACTIVE is a digital offering service that combines SCSK Group’s intellectual property and business expertise. Centered on an AI-native next-generation ERP, it provides business-specific offerings for accounting, HR and payroll, sales and production management, as well as industry-specific offerings for wholesale and trading companies, manufacturing, construction and services. More than 7,500 companies have adopted PROACTIVE.