Construction Work on Hand
In Japan, the amount of construction work on hand refers to the portion of the contracted amount of construction work that has not yet been started. The term “construction work on hand” is roughly equivalent to”construction work carried over” or “carryover balance”.
The relationship between the amount of work on hand, order intake, and the completed construction volume can be expressed as follows.
Amount of work on hand at the end of the previous fiscal year + order intake in the current fiscal year – completed construction volume of current fiscal year = amount of work on hand at the end of the current fiscal year
The amount of work on hand is the amount of construction work that a company has on hand at a given time, i.e., its future sales, so it is a crucial indicator to measure the willingness of contractors to accept construction orders in a single or specific construction market.
For example, if a construction company has a high level of work on hand, there is no need to take on new projects because there is an abundance of work and future sales can be expected. On the other hand, if the level of work on hand is low, the company will be more aggressive in accepting new orders because it has less work to do and its future sales are uncertain.
The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) provides statistical data on the amount of construction work on hand for the construction industry as a whole and for construction companies of specific sizes in its “Current Survey of Construction Orders” and “Construction Statistics.
Comment