Bid-rigging in condo renovation contracts: 42 firms found in violation of antitrust law, FTC names 171 buildings

From our other sites

The story

On September 28, the Japan Fair Trade Commission (JFTC) determined that two design-consulting firms and 40 renovation contractors — 42 companies in total — had repeatedly engaged in bid-rigging in violation of the Antitrust Act (unreasonable restraint of trade) over large-scale renovation work ordered by condominium management unions in the Kanto region. The commission issued cease-and-desist orders to 38 of the companies and ordered the contractors that won the work to pay a combined total of roughly ¥1.638 billion in surcharges. So that residents can check whether their own building is affected, the JFTC published the names of 171 buildings across Tokyo and six surrounding prefectures on its website. On the thread, users swapped stories of management-union board chairmen colluding with contractors, voiced frustration that antitrust violations don’t lead to arrests, and argued over the claim that “if every contractor charges a high price, isn’t that just the going rate?”

9/28 (Mon) 15:30

Yomiuri Shimbun

The Japan Fair Trade Commission announced on the 28th that it had found two design-consulting firms and 40 renovation contractors in violation of the Antitrust Act (unreasonable restraint of trade) over repeated bid-rigging on large-scale renovation work ordered by condominium management unions in the Kanto region, issuing cease-and-desist orders demanding prevention of recurrence to 38 of the companies. It also ordered the renovation contractors that won the work to pay a combined ¥1.638 billion in surcharges.

Source: topics.smt.docomo.ne.jp / Original article here

What people said

22AnonymousSep 28, 2026 22:48
Why isn't this thread taking off? You're all living in tower condos ('tawa-man'), aren't you?
90AnonymousSep 29, 2026 00:11
Re: #22
Most tower condos won't face this for a while yet, no? It's the older, more aged buildings that are getting hit directly.
27AnonymousSep 28, 2026 22:53
>The FTC published the targeted condo projects on its website so residents can check.
Then just post the link already.
What a useless article.
140AnonymousSep 29, 2026 01:32
Re: #27
Leaving it to someone else like that isn't great. It's easy to look up yourself.
Search "Japan Fair Trade Commission," go to the official site → on the homepage under "Featured Information" there's an entry dated September 28 → Attachments 1 and 2, the "Cease and Desist Orders," have it all listed.
Though right now the site's overloaded and barely loading. Probably condo residents and industry people alike are all rushing to look it up right after seeing the news.
33AnonymousSep 28, 2026 23:01
I mean, people who live in condos are all rich anyway, aren't they?
Not really an issue, is it?
46AnonymousSep 28, 2026 23:19
Condo owners are just cash cows.
49AnonymousSep 28, 2026 23:20
It's not just the contractors — the government department supposed to be overseeing this was rotten too.
Apparently as long as the board chairman signs off, the rank-and-file union members are just supposed to shut up and go along with it.
50AnonymousSep 28, 2026 23:20
Re: #49
Well, once you've got the condo board chairman in your pocket, it's smooth sailing.
60AnonymousSep 28, 2026 23:29
Safety in numbers, I guess.
Nobody gets arrested, and if things get dicey you can just fold the company and vanish — whoever does it wins.
131AnonymousSep 29, 2026 00:57
Re: #60
> 60 Anonymous Donburako 2026/09/28 (Mon) 23:29:16.89 ID:Esg1UICX0
> Safety in numbers, I guess.
> Nobody gets arrested, and if things get dicey you can just fold the company and vanish — whoever does it wins.


Seriously, that's exactly it.
You don't get arrested — not under the Antitrust Act.
Seriously? The law's basically cutting them slack.
67AnonymousSep 28, 2026 23:47
The management union is free to go find contractors on its own — it's just dumb unions that hand everything over to middlemen.
Even if you push back against the management company or consultant and go find contractors yourselves, it's pretty common that they turn out to know the management company anyway — but at least then you're the most satisfied it's legit, and it tends to work out.
68AnonymousSep 28, 2026 23:49
Re: #67
But once that becomes routine too, you end up with the contractor and the board chairman getting cozy with each other instead.
207AnonymousSep 29, 2026 07:06
Re: #67
And then they switch to self-management and the whole thing collapses.
76AnonymousSep 28, 2026 23:53
Don't know about the bid-rigging angle, but apparently a lot of condo renovation projects these days use foreign technical intern trainees.
77AnonymousSep 28, 2026 23:54
Re: #76
You see it a lot these days. It's an era where even condo caretakers and cleaning staff are often foreign workers now.
79AnonymousSep 28, 2026 23:55
Re: #76
Exterior wall renovation crews have been full of foreign workers for 20 years already. Calling it "training" is a joke.
104AnonymousSep 29, 2026 00:33
Our condo went through the same thing during an LED lighting replacement — we just let the contractor do whatever it wanted.
Places where a simple LED bulb swap into the existing socket would've been fine, they deliberately picked parts that meant replacing the whole fixture base for LED fittings instead.
The hallway lights got swapped for battery-backup models too, supposedly for emergencies — but a few years later it turned out the batteries needed replacing, and that job cost over a million yen as well.
It's a whole system built for contractors to rake it in.
I really regret not being on the board back then.
112AnonymousSep 29, 2026 00:39
Re: #104
This is exactly like my building! So they're pulling the same stuff at other condos too.
125AnonymousSep 29, 2026 00:52
Re: #104
If you feel that strongly about it, you should run for the board right now, no matter what, and work to make sure this kind of thing doesn't happen again. Sorry if you're already on the board.
121AnonymousSep 29, 2026 00:48
Sadly, all the big companies are rip-offs, so even when residents get their act together and try to find a decent one, there isn't one out there.
126AnonymousSep 29, 2026 00:53
Re: #121
If every single one quotes rip-off prices, isn't that just… the market rate?
129AnonymousSep 29, 2026 00:54
Re: #126
That's exactly what this bid-rigging is. All the big names lined up together.
130AnonymousSep 29, 2026 00:56
Re: #126
If that were true, it wouldn't have been ruled an antitrust violation. This was clearly over the line, which is why the government stepped in.
174AnonymousSep 29, 2026 05:32
In the first place, is it even true that "this has a service life of X years so it needs replacing"? Aren't they just lying to line their own pockets?
175AnonymousSep 29, 2026 05:42
Re: #174
If they don't get you replacing things on a set schedule, they can't keep their construction crews employed — so they make you replace stuff even when it isn't broken.
191AnonymousSep 29, 2026 06:47
Re: #174
Of course there's a lot of lying, it's that kind of business — construction and real-estate types are scummy like that.

Background and key points of this story

Large-scale renovation work has long been prone to collusion between design consultants and construction contractors, because the decision on contracts worth tens of millions of yen is made by the condo’s management union — a temporary, amateur body. What stands out this time is that the JFTC found two design-consulting firms and 40 renovation contractors, 42 companies in total, in violation of the Antitrust Act (unreasonable restraint of trade), issuing cease-and-desist orders to 38 of them and a combined roughly ¥1.6 billion in surcharges to the contractors that won the work — spanning a wide area of 171 buildings across Tokyo and six surrounding prefectures. The JFTC publishing the names of the targeted condos on its website is an unusual step, giving the residents themselves, as the parties affected, a chance to find out. On the thread, comments mostly voiced frustration that bid-rigging results only in fines rather than criminal arrest, and pointed to the structural weakness of management unions that tend to leave everything to contractors. Note: several posts named specific companies allegedly involved in the collusion, but since it couldn’t be confirmed from the article whether they match the companies actually named in this case, those posts have been excluded here.

*This article is compiled as an excerpt and summary of the 5channel (News Express+) thread “Bid-rigging in condo renovation contracts: 42 companies found in violation of Antitrust Act… the structure behind residents’ “increased burden” — FTC publishes names of 171 condos across Tokyo and 6 prefectures.”

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *