Article 1The purpose of this Act is to promote quality assurance in public works at present and in the future, and to contribute to the enhancement of the welfare of the nation and the sound development of the national economy by providing for the basic matters concerning the promotion of quality assurance in public works, including the promotion of securing basic principles concerning quality assurance in public works, the responsibilities of the State, etc., and securing and fostering personnel over the medium and long term responsible for formulating basic policies, in view of the fact that quality assurance in public works contributes to achieving prosperous life of the people and securing of their safety, environmental conservation (including the creation of a favorable environment), and the establishment of autonomous and unique local communities, etc. through high-quality social infrastructure, and is in the benefit of the people of present and future generations.

Article 2"Public works" as used in this Act mean the public works as provided in Article 2, paragraph 2 of the Act for Promoting Proper Tendering and Contracting for Public Works (Act No. 127 of 2000).

Article 3(1)In view of the fact that public works are socially and economically important, because public works improve social infrastructure as a basis for the lives of the people and economic activities at present and in the future, the quality of public works must be secured for the present and future people by the State and local governments, and commissioning entities and contractors of public works in playing their respective roles.

(2)The quality of public works must be secured by concluding a contract that is excellent in terms of price and quality, taking into account various elements other than price, while giving consideration to economic efficiency, in view of the fact that construction work has peculiarities such as the difficulty to confirm the quality until its object is put into use, its quality large dependence on the technical capabilities of the contractors, and the existence of different conditions between individual works.

(3)The quality of public works must be kept up into the future by maintaining and enhancing construction technology and by fostering and securing personnel who have such construction technology as responsible for quality assurance in public works over the medium and long term.

(4)The quality of public works must be secured by selecting appropriate methods among various tendering and contracting methods in accordance with the nature of the works and the actual conditions of the area, etc., while giving consideration to the capabilities and formation of the commissioning entity (hereinafter referred to as the "Commissioning Entity," except for Article 24) of the public works.

(5)The quality of public works must be secured by more appropriate technology or ingenuity in view of the fact that work efficiency, safety, and environmental impact are important in securing the quality of public works.

(6)The quality of public works must be kept up into the future through appropriate maintenance and management, such as inspections, diagnosis, maintenance, and repair after the completion.

(7)The quality of public works must be kept up into the future by giving consideration to the fostering and securing of personnel responsible for quality assurance in public works in the area based on the actual conditions of the area, so that the maintenance and management, including response at the time of disaster, of social infrastructure are appropriately executed.

(8)In assuring the quality in public works, consideration is to be given to proper tendering and contracting, such as the exclusion of a construction business operator that is not qualified as a contractor, by securing the transparency of the tendering and contracting process and of the contract information, and the fairness in tender, by thoroughly abolishing involvement in bid-rigging or tendering bid-rigging, and other improper actions; by preventing the conclusion of a contract for public works of which the proper implementation cannot be expected depending on the contract fee; and by securing the proper implementation of contracted public works.

(9)In assuring the quality in public works, consideration must be given to the utilization of capabilities of private business operators by appropriately evaluating capabilities of the private business operators and appropriately reflecting them in tendering and contracting, and by utilizing positive technical proposals (meaning proposals on technology or ingenuity concerning public works; the same applies hereinafter) and originality and ingenuity of the private business operators.

(10)In assuring the quality in public works, in view of the fact that subcontractors, as well as contractors and engineers and skilled workers, etc. employed by them, play important roles in quality assurance in public works, consideration must be given to the conclusion of a fair contract for a proper amount of a contract fee by the parties to a contract (including a subcontract) for public works fairly based on an agreement made on terms of equality and the honest and good faith performance thereof, such as paying the contract fee as soon as possible, and the improvement of labor conditions, such as wages, and working environment, such as safety and health of those engaging in public works.

(11)In assuring the quality in public works, in view of the fact that the quality of surveys (including inspections and diagnosis; the same applies hereinafter) and designs for public works play an important role in quality assurance of public works, based on the purposes of the preceding paragraphs, in an equivalent manner as public works, the quality of surveys and designs for public works must be secured by appropriately evaluating the capabilities of persons who have necessary knowledge and technology by means of their qualifications, etc. according to the content of the work, and by fully utilizing such persons, etc.

Article 4In accordance with the basic principles provided for in the preceding article (hereinafter referred to as the "Basic Principles"), the State is responsible for comprehensively formulating and implementing measures on the promotion of quality assurance in public works.

Article 5In accordance with the Basic Principles, local governments are responsible for formulating and implementing measures on the promotion of quality assurance in public works based on the actual conditions of the area.

Article 6The State and local governments must closely coordinate and cooperate with each other in formulating and implementing measures on the promotion of quality assurance in public works in order to ensure the Basic Principles.

Article 7(1)In accordance with the Basic Principles, in order to secure the quality of public works at present and in the future, while taking into consideration the fostering and securing of personnel responsible for quality assurance in public works over the medium and long term, the Commissioning Entity must appropriately implement the preparation of specifications and design documents, preparation of a target price, selection of the methods for tendering and contracting, determination of a counterparty to a contract, supervision and inspection of construction, and confirmation and evaluation of implementation status during works and at the time of completion and other processes(hereinafter referred to as "order-related processes") pursuant to the following provisions, etc.:

(2)In order to effectively utilize materials concerning the evaluation of the implementation status of public works and other materials in its future commission and in a commission between Commissioning Entities with each other, the Commissioning Entity must take measures for standardization of the evaluation, and must develop and renew a database and take other necessary measures for storing such materials.

(3)In order to appropriately implement order-related processes, the Commissioning Entity must endeavor to create the necessary infrastructure, assigning staff, etc., and endeavor to ensure coordination with other Commissioning Entities through information exchange, etc.

Article 8(1)In accordance with the Basic Principles, a contractor of public works must properly implement contracted public works, and when entering into a subcontract, endeavor to conclude the subcontract for a contract fee in the proper amount.

(2)A contractor (including a person who intends to be a contractor) must endeavor to enhance technical capabilities, foster and secure engineers, skilled workers, etc., and improve the wages and other labor conditions, and safety and health and other working environment pertaining to them necessary for the proper implementation of public works that have been contracted or are to be implemented.

Article 9(1)The government must establish a basic policy (hereinafter referred to as the "Basic Policy") for comprehensively promoting measures on the promotion of quality assurance in public works.

(2)The Basic Policy provides for the following matters in public works:

(3)In formulating the Basic Policy, the autonomy of quasi-governmental agencies, etc. (meaning the quasi-governmental agencies as provided for in Article 2, paragraph (1) of the Act for Promoting Proper Tendering and Contracting for Public Works; the same applies hereinafter) and local governments must be considered.

(4)When establishing the Basic Policy, the Government must announce the same without delay.

(5)The provisions of preceding two paragraphs apply mutatis mutandis to changes in the Basic Policy.

Article 10In accordance with the provisions of the Basic Policy, the Head of each Ministry and Agency of the National Government (meaning the Head of each Ministry and Agency of the National Government as provided for in the Public Finance Act (Act No.34 of 1947)), the representative of quasi-governmental agencies (when said quasi-governmental agency, etc. is the incorporated administrative agency provided for in Article 2, paragraph (1) of the Act on General Rules for Incorporated Administrative Agencies (Act No. 103 of 1999, its Head)) and the Head of local governments must endeavor to take necessary measures for the promotion of quality assurance in public works.

Article 11The government is to develop cooperation systems among relevant administrative organs and take other necessary measures on the formulation of the Basic Policy and the implementation of the measures pursuant thereto.