Chugoku Bureau Revokes Two Licenses Under Construction Business Act Article 29

The Chugoku Regional Development Bureau (Hiroshima City) published a “Public Notice of Revocation of Construction Business Licenses” in the Official Gazette dated November 6, 2026, revealing that it has revoked the construction business licenses of two companies based on Article 29, Paragraph 1 of the Construction Business Act (Act No. 100 of 1949). The dates of the dispositions were October 13 and 14, 2026, and the notice was issued under the name of Taishi Yamamoto, Director-General of the Chugoku Regional Development Bureau, in accordance with the provisions of Article 29-5, Paragraph 1 of the same Act. Both targets of the revocation were operators in Hiroshima and Okayama Prefectures holding licenses from the Minister of Land, Infrastructure, Transport and Tourism.

The public notice is a procedure by which the administrative agency widely informs the public of the fact of license revocation, serving as basic material used by public works ordering agencies and prime/subcontracting business partners for qualification verification. The common reason for revocation for both companies was the notification of business closure as of October 13, 2026, pursuant to the provisions of Article 12 of the Construction Business Act (including cases where it is applied mutatis mutandis in Article 17), which was determined to fall under Article 29, Paragraph 1, Item 5 of the same Act. As stated in the notice, the facts causing the disposition and the date of the disposition occurred in close proximity.

SANSEI of Saeki Ward, Hiroshima City: Special License for Piping Work Revoked

• Trade Name: SANSEI Co., Ltd.
• Representative: Masahito Yamada
• Location of Principal Office: 115-1 Noji, Aza-Shimogouchi, Itsukaichi-cho, Saeki-ku, Hiroshima City, Hiroshima Prefecture
• License Number: Minister of Land, Infrastructure, Transport and Tourism License (Special 3) No. 28307
• Date of Disposition: October 14, 2026
• Content of Disposition: Revocation of the special construction business license regarding piping work
• Cause: Notification of business closure for all business types (dated October 13, 2026)

The company was an operator holding a special construction business license, and the scope of the revocation is limited to piping work. The notice explicitly states that the cause of the disposition was the notification of business closure for all business types on the same date.

Delta Tech of Kurashiki City: General Licenses for 4 Business Types Revoked

• Trade Name: Delta Tech Co., Ltd.
• Representative: Hiroaki Hirai
• Location of Principal Office: 374 Futsukaichi, Kurashiki City, Okayama Prefecture
• License Number: Minister of Land, Infrastructure, Transport and Tourism License (General 3) No. 28317
• Date of Disposition: October 13, 2026
• Content of Disposition: Revocation of general construction business licenses regarding architectural work, electrical work, piping work, and telecommunications work
• Cause: Notification of business closure for some business types (dated October 13, 2026)

In this case, general construction business licenses were the target, and the revocation extends to four business types: architecture, electricity, piping, and telecommunications. The cause was the notification of business closure for some business types, and the notice indicates that the date of disposition and the date of notification are the same.

Practical Impact on Orderers and Business Partners

Businesses that lose their construction business license are prohibited from undertaking construction work in the relevant category and are unable to enter into subcontracting agreements that require a special construction business license. In public works, this directly leads to measures such as the review of eligibility for competitive bidding or suspension of nomination; ordering agencies must verify the validity of the license at the time of qualification certification.

In private construction as well, since prime contractors bear the obligation to verify the licenses of their subcontractors, businesses that have both parties as clients may be forced to review their second-tier subcontracting agreements. Public notice is provided externally via publication in the Official Gazette, and the revocation of a construction business license is a systemic measure that can only be rectified through an application for a license conversion or a new license.

Source: Official Gazette, November 6, 2026, Chugoku Regional Development Bureau Notice “Public Notice of Revocation of Construction Business License” (Notice based on Article 29, Paragraph 1 and Article 29-5, Paragraph 1 of the Construction Business Act; Notifier: Taishi Yamamoto, Director-General of the Chugoku Regional Development Bureau)