Abstract
In Japan, there is such an extremely high risk of natural disasters that construction firms play important roles, not only in infrastructure management, but also in disaster prevention and economic development for the society. However, due to the recent impoverishment of the industry, which afterward may cause a reduction in the quality level of the constructions, there has appeared to be an argument about how to re-design the tendering and contracting system. This study, reviewing the history of the contracting system for public works, reveals that maintaining construction quality and the existence and development of construction firms have so far been and should be considered properly on contracting system, considering the social impact the firms have on the society. Furthermore, the study concludes a fundamental direction to the future tendering and contracting system with a suggestion in which local construction function is considered.