“Declaration of Partnership Building”
We, Taisei Corporation, hereby declare that we will focus on observing the following mattersby promoting further collaboration and prosperous coexistence when establishing newpartnerships with our supply chain (sub-contractors and vendors) and value-creating business
partners.
1.

Prosperous coexistence for the entire supply chain and new collaboration regardless ofthe company scales and the existing business relationships
We will work to build relationships with new sub-contractors and partners through ourcurrently contracted sub-contractors and partners (from “Tier N” to “Tier N+1”) to
establish our prosperous coexistence and increase the added value of the entire supply
chain by further collaboration regardless of the existing business relationships and thecompany scale. Then, we will also provide the sub-contractors, vendors and partners
with advice and other assistance for introducing teleworking and establishing BusinessContinuity Plans (BCP) from the viewpoint of the business continuity in the event of adisaster or other business disruption, and the viewpoint of the work-style reforms.
In addition, we will strive to support the education and personnel training of the subcontractors and vendors as well as to conduct proper business transactions based on the“Voluntary Action Plan for Accomplishing Proper Subcontractor Transactions andEnsuring Proper Ordering Activities” established by Japan Federation of Construction
Contractors.

2.

Observance of “Promotion Standards”
We will observe desirable trade practices between main contractors and sub-contractors(“Promotion Standards” as defined in the Act on the Promotion of Subcontracting
Small and Medium-sized Enterprises) and work actively to correct trade practices andcommercial practices that might hinder the establishment of new partnerships with oursub-contractors and partners.
(1)

Pricing methods and execution of proper contracts
We will not demand unreasonable cost reductions and will make effort to build
equal relationships between main contractors and subcontractors, and to accomplish
fair and transparent business transactions by thoroughly observing the proper
procedures based on the “Guidelines for Observing Construction Industry Laws”
formulated by the Ministry of Land, Infrastructure, Transport and Tourism.
We will also ensure the execution of written sub-contracts (including electronic
contracts) before commencement of the sub-contract work in accordance with theConstruction Business Act and other relevant laws and regulations from theviewpoint of clarification of the sub-contract conditions, prevention of dispute, andimprovement of the unilateral nature of sub-contracts duly considering our position
as the main contractor. During this process executing the sub-contracts, we, as themain contractor will negotiate with sub-contractors on an equal footing and try to- 1 -conclude sub-contracts based on mutually acceptable conditions with reference to“the Guidelines Concerning Price Negotiation for Appropriate Shifting of Labor
Costs” jointly issued by the Cabinet Secretariat of Japan and the Japan Fair Trade
Commission, etc.
(2)

Payment terms of sub-contract remuneration
We will try to increase the ratio of our cash payment for sub-contract remuneration
when the payment should be made by both cash and promissory note, and to makecash payment for the remuneration especially corresponding to the labor costs.
When amendment is made to the directive or other guidance by the government
regarding the payment to sub-contractors by promissory note, the payment termsand other conditions will be revised accordingly.

(3)Intellectual property including know-how
We will not request our sub-contractors, vendors and partners to conclude a onesided confidentiality agreement, to disclose their know-how, or to transfer theirintellectual property rights with no compensation by using a dominant bargaining
position in the business transactions.

(4)Sub-contractors’ work-style reforms
We will not require our sub-contractors to complete the sub-contract work within
an unreasonably short term or direct the sudden change to the specifications of thesub-contract work without proper compensation of the increased costs so that thesub-contractors can duly promote the work-style reforms. In the event of adisaster or other business disruption, we will not impose unilateral trading burdens
on the sub-contractors and will give priority to continuing the business relationships
with the sub-contractors as much as possible when the business operations areresumed after the disaster or the disruption.
May 31, 2024
Yoshiro AIKAWA
President and Chief Executive Officer
Taisei Corporation- 2 -