The East Japan Construction Surety Company, Ltd. (EJCS) was established in 1952 and has played a significant role in the rapid growth of Japan’s public infrastructure over the last 60 years. EJCS has actively promoted a prepayment guarantee system for public works projects in many parts of the country.
In Japan, a part of the construction price is generally payable before the construction starts, thereby reducing the contractor’s financial burden. Since most public works contracts amount to a large sum of money, it is essential for a public procurement authority to protect and, if necessary, recover its prepayment in case of a contractor’s default. In this manner, the government entity can avoid loss of its precious public funds.
Thus, in 1952, a law was passed requiring a public works contractor which receives a prepayment to obtain a guarantee from a guarantee company. If the contractor goes bankrupt during the construction, the guarantee company reimburses the prepaid amount to the procuring organization.
EJCS is the largest among the guarantee companies now operating in Japan. It provides its services throughout Japan and has an overwhelming share of the prepayment guarantee market in Eastern Japan.
We at EJCS believe our guarantee services are valuable to thousands of procurement organizations and widely benefit the construction industry.
Through our guarantees, we promise to continue to play a vital role in the building and rebuilding of our country, making it a better place for all who visit or live and work in Japan.
President and CEO Makoto Misawa