On June 12, the media reported that in relation to suspected bid-rigging over condominium large-scale repair work, the Fair Trade Commission plans to find violations of the Antimonopoly Act against involved business operators and issue cease-and-desist orders and surcharge payment orders.
As announced on the same date, Smart Shuzen Co., Ltd. (Headquarters: Shinjuku-ku, Tokyo), which provides estimate assessments and construction support services for large-scale repairs of common areas in large buildings such as condominiums and offices, has not engaged in any unfair practices such as bid-rigging. Furthermore, the company was not subject to the on-site inspection conducted by the Fair Trade Commission at that time. Regarding the recent reports, the company is also not subject to these administrative measures.
On the other hand, the recent reports highlight once again issues such as price transparency, fairness in the ordering process, and the information gap between management associations and specialized business operators in condominium large-scale repair work.
Large-scale repair work is a major decision made once every ten-odd years for a management association, and the expenditure can range from tens of millions to hundreds of millions of yen. However, it is not easy for a management association alone to judge the appropriateness of the construction items, quantities, unit prices, and specifications listed in the estimate.
Our company believes that utilizing a system where management associations can verify estimates from a third-party perspective prior to ordering is one of the effective means to prevent opaque price formation and unreasonably high estimates.
Providing a Free Simulator for Management Associations in Collaboration with Yokohama City
In January 2026, our company was selected for the 'Private Collaboration for Condominium Management Associations' publicly recruited by Yokohama City. In this collaboration, we provide the 'Large-Scale Repair Cost Simulator' with the aim of making it easier for condominium management associations to compare estimates with market rates and verify their appropriateness.
Based on estimates already obtained by management associations, this simulator verifies the appropriateness of estimated amounts based on our unique database and experts' knowledge, taking into account building scale, construction details, and regional characteristics.
The service is free of charge, and management associations can use it as a second opinion before ordering, for revising estimates, or in discussions with contractors.
- Yokohama City Edition Large-Scale Repair Cost Simulator
Recent Usage Cases: Results Average 20-30% Higher Than Market Rates, Some Cases Over 1 Million Yen More Expensive Per Unit
In cases where the 'Large-Scale Repair Cost Simulator' was utilized, the existing estimates exceeded our calculated amounts by an average of about 20% to 30%. In many cases, differences of over 100,000 yen to over 200,000 yen per unit were observed.
Furthermore, in some condominiums, there were cases where they were presented with high estimates exceeding the market rate by more than 1 million yen per unit.
*These figures are based on simulator usage cases and do not indicate general trends in condominium large-scale repair work as a whole. Nor do they indicate the existence of bid-rigging or fraud in individual estimates.
Third-Party Assessment Helps Prevent Opaque Pricing and High Estimates
Yoshinori Bessho (Executive Officer and Head of Consulting for Management Associations, Smart Shuzen Co., Ltd.)
"Large-scale repair work is a very major decision for all members of management associations. On the other hand, estimates are highly specialized, and knowledge and experience are required to judge the appropriateness of construction items, unit prices, and specifications.
Following the recent series of reports, interest in price transparency and fairness in the ordering process has risen further. From the cases of simulator use in collaboration with Yokohama City, we have seen the importance of assessing obtained estimates from a third-party perspective to objectively verify not only the amount but also the appropriateness of construction details, specifications, and unit prices. While a high estimate does not immediately imply wrongdoing, third-party assessment serves as a helpful tool to prevent opaque pricing and inappropriately high estimates.
For management associations, having a sense of market rates and making informed ordering decisions is essential to properly utilize repair reserve funds and protect their valuable assets."
Overview of "Smart Shuzen"
An estimation and construction support service for common area work, such as large-scale repairs of large buildings including condominiums and offices. By having professionals conduct estimate assessments utilizing a proprietary estimate database, we achieve cost reductions for repair work. In addition, specialized consultants provide thorough, consistent support from degradation diagnosis to introducing construction companies and supporting construction. We handle various adjustments on behalf of the customer, saving them time and effort while explaining specialized details in an easy-to-understand manner. Since no contracts or fees are incurred by the customer, they can use this service as a second opinion without any burden, even if they already have an estimate from another company.
- Service Site: https://smart-shuzen.jp - YouTube "Shuzen TV": https://www.youtube.com/@スマート修繕 - Owned Media: https://smart-shuzen.jp
FACT BOX
- Source: PR TIMES
- Category: Survey