MLIT orders 120-day business suspension for Kajima and Taisei over Linear bid-rigging case
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What happened
MLIT imposed a 120-day business suspension on Kajima and Taisei following the confirmation of criminal guilt in a bid-rigging case involving Linear Chuo Shinkansen station construction contracts. According to the cited report, the sanction covers private civil engineering projects across Japan and takes effect on 2026-11-07.
Why it matters
The order removes two major contractors from covered private civil engineering activity for four months, which can change bidding conditions, project schedules, subcontractor workloads, and lender assumptions for ongoing projects. It also signals that antitrust and procurement misconduct in flagship infrastructure work can lead to operating restrictions beyond fines and reputational damage.
Japan's Ministry of Land, Infrastructure, Transport and Tourism on October 23 ordered Kajima Corporation and Taisei Corporation to suspend covered business for 120 days after guilty verdicts in a bid-rigging case tied to Linear Chuo Shinkansen station construction in Shinagawa and Nagoya. The suspension will run from 2026-11-07 to 2027-03-06 and applies to private-sector civil engineering work nationwide. The measure creates an immediate planning issue for project owners, competitors, lenders, and ministries watching construction capacity and compliance risk in major infrastructure supply chains.
Watch for
Kajima Corporation filing on or after 2026-10-26 detailing revised earnings guidance or order-book effects from the MLIT suspension Taisei Corporation filing on or after 2026-10-26 stating project scope exclusions, subcontractor treatment, or compliance measures before 2026-11-07 MLIT notice on or after 2026-10-26 clarifying the sanction's application to joint ventures, existing contracts, or carve-outs for specific civil works JR Central statement on or after 2026-10-26 on whether the suspension alters contractor allocation or timelines for related Linear Chuo Shinkansen works