Main Business

Main Business

Construction project / Bond insurance intermediary service

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Our main businesses are design, construction and maintenance in construction work in the US military base, and bonds insurance intermediary business.

 

In the case of participating in the bidding (works ordered by the US military or purchased products and materials) within the US military base, all companies can submit their bidding by following the procedure outlined on the US government website, and fair decisions will be made by the US government.

 

In the bidding process, firms need to acquire the required PASS and fill out the bidding specification document. For the acquisition of PASS (only for the first time), accumulation of bids (estimate), preparation of required documents, procurement of materials, and construction standards, US methods shall be followed.

 

Also, when participating in bidding, bond payment (performance insurance) of 20% of the total bid price is required, (Bidding bond money will not be refunded). In addition, if a bid is successful, 100% bond money of the total bid price is required. (It will be refunded in about 2 years after completion of construction) The requirement of 120% of bond money in the process from bidding to successful bidding have led to high hurdles, such as funding efficiency, various procedures in the US system, accumulation, procurement of materials, etc., for domestic construction related contractors. So, it has been considered to be a business area with high barriers to entry.

 

Utilization of bonds insurance (performance insurance) is the efficient solution to alleviate the bond money burden, mainly through major foreign insurance companies, and certain major domestic insurance companies’ participation. But there are only 47 agent firms accredited by the US military in the bonds insurance intermediary field in the world. Given a lot of large insurance dealings are undertaken by foreign insurance firms, insufficient number of bond insurance quota is allocated to domestic Japanese construction companies. This makes difficult for Japanese firms to utilize these bond insurance quotas even though the construction works are for the US military bases located in Japan. Therefore, foreign-affiliated construction companies, which have advantage in acquiring the bond insurance quota, have actually obtained most of the orders.

 

In such a market, PRT Solutions entered into the bond insurance intermediary operation in Japan as of 2016, as a long-awaited, the first one in Japan and one of 47 US military designated bond insurance agencies around the world. As mentioned above, however, given most of domestic construction companies only had very few opportunities to utilize the insurance quota, it could be said that many domestic constructions related companies had not obtained orders effectively. We would like to improve the situation starting from Okinawa Prefecture where the base burden rate is high, and then to the whole country.

 

With the agreement to comprehensively build the environment at domestic national level that can enter the market of US military construction related businesses, Nihon Urban Development Project Corporation (“NUDP”) concluded to have the business partnership with PRT Solutions, on which we together are going to promote in various solution businesses to eliminate the existing barriers in this arena.

 

By establishing a standing position as the primary agent of bond insurance in Japan and the Asian region of PRT Solutions, agent of bond insurance for the first time in Japan, we have our own insurance coverage of bond insurances, and become the first domestic company that makes it possible to use in-house. Through the exclusive agency agreement, we will be able to support overseas expansion by each domestic cooperating company after obtaining approval which allows us to receive US military construction orders all over Japan and the whole world possessed by NUDP.

 

Based on these backgrounds, NUDP believes that its main mission is to build an environment in which many of Japanese construction-related business operators can participate in various construction works.

 

Our firm’s comprehensive solution business and construction network

Our support contents are:
(1) Supporting and consulting services for acquiring PASS
(2) Accumulation and quotation support for bidding process ·Consulting business
(3) Integrated support for acquiring prime contractors (Primary charge contractors)
  → Mediation, cooperation, and/or collaboration of partner companies outside the company's domain
(4) Bond insurance intermediary service
(5) Partnership collaboration by our construction department (partner company)

 

We will provide typically the following three stage services;
1. To provide the network of affiliated companies that support the completion of construction projects by collaborative partnership,
2. To participate and become a co-prime contractor on JV scheme, to share construction projects with any cooperating companies,
3. To support the growth of construction work companies which acquired filing procedure experience to required skills and were certified as prime contractors for the US military construction works.

 

Through these comprehensive support projects, our business aim is to create opportunities for many companies in/around Japan to be able to enter the market for US military constructions.

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