MLIT Revokes Construction Licenses for Hiroshima City Company

The Ministry of Land, Infrastructure, Transport and Tourism’s Chugoku Regional Development Bureau (Director General Taishi Yamamoto) revoked the Special Construction Business License for electrical work of Sanyo Co., Ltd. (Representative Shinichi Matsunaga), located at 8-12 Nishihiratsuka-cho, Naka-ku, Hiroshima City, Hiroshima Prefecture, effective October 19, 2026. The disposition was based on Article 29, Paragraph 1 of the Construction Business Act (Act No. 100 of 1949), and the Bureau announced this in the official gazette (Kanpo) on November 13, 2026, pursuant to the provisions of Article 29-5, Paragraph 1 of the same Act.

The Construction Business Act Framework Governing Dispositions and Public Notices

A construction business license is an administrative qualification required for construction contractors when entering into construction contracts, divided into licenses granted by the Minister of Land, Infrastructure, Transport and Tourism and those granted by prefectural governors. Sanyo Co., Ltd. held Minister of Land, Infrastructure, Transport and Tourism License (Special 4) No. 26692, which is a special construction business license issued to operators conducting business across multiple prefectures.

Article 29-5, Paragraph 1 of the Construction Business Act, which serves as the basis for the public notice, is a provision requiring that the details of dispositions, such as the revocation of a license, be publicized in the official gazette. This notice explicitly states the date of the disposition, the trade name, representative’s name, primary office location, and license number of the party subject to the disposition, the content of the disposition, and the facts that caused the disposition.

The publicized details are as follows:

• Date of Notice: November 13, 2026 (Official Gazette Public Notice Section)
• Issuing Authority: Taishi Yamamoto, Director General of the Ministry of Land, Infrastructure, Transport and Tourism Chugoku Regional Development Bureau
• Date of Disposition: October 19, 2026
• Party Subject to Disposition: Sanyo Co., Ltd., Representative Shinichi Matsunaga, 8-12 Nishihiratsuka-cho, Naka-ku, Hiroshima City, Hiroshima Prefecture
• License Number: Minister of Land, Infrastructure, Transport and Tourism License (Special 4) No. 26692
• Content of Disposition: Revocation of license based on Article 29, Paragraph 1 of the Construction Business Act (Special Construction Business License regarding electrical work)

Application of Article 29, Paragraph 1, Item 5 Due to Notification of Business Closure

The cause of the disposition stated in the notice is the fact that a “notification of closure of business pertaining to some types of business” was submitted on October 19, 2026, in accordance with the provisions of Article 12 of the Construction Business Act (including cases where it is applied mutatis mutandis in Article 17). The Bureau determined that this falls under Article 29, Paragraph 1, Item 5 of the same Act.

In other words, this case is not a punitive revocation based on business suspension or misconduct, but rather a qualification adjustment disposition following the operator’s own notification of withdrawal from a specific business type—in this case, electrical work. The fact that the date of the disposition and the date of the business closure notification are the same indicates that the procedures were carried out concurrently with the notification.

Additionally, the official gazette notice on the same date also included a public notice by the Bureau regarding the return of structures based on Article 75, Paragraph 5 of the River Act (First-Class River Takasu River System), both of which were issued in the name of the Director General of the Chugoku Regional Development Bureau.

Practical Impact on Business Partners and Participation in Bidding by Ordering Agencies

Due to the revocation of its permit, Sanyo Co., Ltd. loses its qualification as a construction contractor to enter into contracts for electrical work. Since a construction business permit is required not only for receiving orders as a prime contractor but also for performing work as a subcontractor, a review of existing business relationships is inevitable.

On the part of ordering agencies, the company will lack the permit that serves as a prerequisite for bidding qualification screenings, which will hinder its participation in future tenders and the conclusion of contracts. As the announcement was published in the Official Gazette, it has acquired external public notice status, and business partners and ordering agencies can officially verify the status of the qualification from the date of the announcement onward.

Electrical work is one of the 29 types of construction businesses responsible for electrical equipment installation; a Special Construction Business Permit is required when entering into subcontracting agreements above a certain scale as a prime contractor. For businesses considering ordering electrical equipment work in the region, securing qualified alternative contractors becomes a practical challenge.

Official Sources

• Official Gazette, November 13, 2026 (Reiwa 8), Announcement Column “Public Notice of Revocation of Construction Business Permit”
• Issuing Authority: Taishi Yamamoto, Director-General of the Chugoku Regional Development Bureau, Ministry of Land, Infrastructure, Transport and Tourism
• Legal Basis: Construction Business Act (Act No. 100 of 1949), Article 29 Paragraph 1, Article 12, Article 29-5 Paragraph 1