Business Model and Strengths
“Zouchu” business model a defining trait
The “Zouchu” method is how First-corporation wins orders, beginning with the development of land for condominium buildings, proposing to condominium developers a condominium plan integrating land and buildings, and then becoming the building contractor for building construction in a special order placed by the developer. While a general contractor, First-corporation is unique in that it also has a team of specialists that develop land for condominium buildings. Most condominium construction subcontract work is decided through a competitive bidding process. In this case, securing profits can be a challenge because contractors compete over prices for building construction plans devised by the developer.
Under the “Zouchu” method, however, First-corporation proposes its own plans to multiple condominium developers, and this makes it easier to lock in profits. Since we are able to negotiate various terms and conditions, the contractual terms are better than the bidding approach, such as better payment conditions at every stage of the project.
Having become known to condominium developers as the company that brings to the table projects with land included, First-corporation has seen an increasing number of cases where contract work is received under semi-special terms.
Moreover, First-corporation is able to set proper construction schedules because it plans each project itself. Compared with other general contractors, this has the benefit of reducing the risk of earnings deterioration from additional workloads.
Outline of “Zouchu” business model
Passion for quality
＝Involvement of Independent Organizations＝
First-corporation ensures quality by spending on unseen areas. In order to construct safe and solid buildings, we make every effort to ensure quality by keeping construction quality management manuals up to date and properly training employees.
We have asked independent organizations to inspect the construction of our building structures since January 2016, including pilings, reinforcement arrangements and ready-mixed concrete.
If condominium developers do not ask an independent organization to conduct inspections, First-corporation has inspections carried out by an independent organization at its own cost. First-corporation places the highest priority on ensuring quality.
Initiatives to Maintain Consistently High Quality
- Establish and keep up to date our construction quality management standards and manuals
- Conduct rank-based training sessions
- Formulate safe and solid construction plans via construction review meetings
- Secure accuracy and safety through on-site inspections
- Ensure higher levels of safety with third-party inspections