Posts Tagged ‘general contractors’

Disaster housing proves cash cow for general contractors

Wednesday, August 10th, 2011

Temporary housing doesn't come cheaply (Kyodo photo)

An article in the Aug. 2 edition of the Asahi Shimbun reported that the average cost of constructing a temporary housing (kasetsu jutaku) unit in Miyagi Prefecture to shelter victims of the March 11 disaster has been ¥3.7 million, which is about 50 percent higher than the price stipulated in the revised Disaster Relief Law. Moreover, that figure does not include associated costs such as plumbing. When those costs are factored in the average price per unit skyrockets to more than ¥5 million. To put matters into perspective, many prefab housing manufacturers offer products, meaning full 3-bedroom homes, that you can have built for as little as ¥8.7 million.

The prefecture made deals with two associations soon after the quake and by June 22 had signed contracts to provide 17,510 units. One association consists of eleven companies that build prefabricated housing, while the other consists of 24 companies that “lease” prefab housing. The former companies would build houses from the ground up using all new materials, while the latter company would provide housing using materials “recycled” from other prefab constructions. The average size of each unit is 29.7 square meters. Obviously, the leasing companies’ units are cheaper, but they still ended up being more expensive than the legally stipulated price, which was ¥2.38 million per unit. In fact, the prefecture knew that when it accepted the bid from the association, which was ¥2.88 million per unit. As of mid-June, that price had risen to ¥3.45 million. But that’s nothing compared to the price of a fully constructed unit, which has climbed to as much as ¥5.1 million.

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