3 Types of Home Building Companies You Should Know First When Building or Renovating a Home in Japan

When you build or renovate a house in Japan, you hire some architectural firm, right?
 What I find difficult for people from other countries to understand is the choice of the type of architectural firm. For example, in the U.S., when an individual builds a new house, he or she would basically start with a plan by a person called an architect or designer. If anything, there should be fewer people building new construction from scratch. In Japan, it is not uncommon for people to build new construction, and many building companies exist. Even if you are purchasing an existing home and renovating it, we recommend that you first understand how the industry works, as the difficulty of construction will depend on which company originally built the new home.

There are three main types of building companies.

1. housebuilder
2. building contractor 
3. design office

While there are some online explanations of the features and differences between these home builders, I will try to explain them here based on my own experience.
Since what each home builder can do and the advantages and disadvantages of each differ greatly, the best way to build the home you want is to first understand the features of each.

I would now like to explain each of the characteristics and advantages and disadvantages of home builders, along with some behind-the-scenes information about the industry that I know because I am a real estate professional.

a. Housebuilders

A house builder is a housing company that handles everything from sales to design, construction, and after-sales service.

Many of these companies are large enough to have a nationwide presence, and they market themselves extensively through TV commercials to attract a large number of customers. They provide cost-effective houses to consumers by cutting costs through bulk procurement of materials and design and construction according to uniform standards, taking advantage of the economies of scale of large companies.

On the other hand, since the floor plan and facilities must be decided within a unified specification, the degree of freedom in design is inevitably reduced.

They also show model rooms around the country, but these are usually luxurious with options, so you may be surprised to find that the price is much higher than you had expected if you try to follow the model room.

Since house builders provide a full range of services related to house building, from sales to construction to after-sales follow-up, they have the advantage of being able to build a reasonable house even if they do not know much about construction. However, as we have already mentioned, salespeople at major house-builders are all over the map, so it is a big question whether you can trust them with everything.

Advantages of a house builder

• The security of a major company.
• Cost-effective home construction can be expected.
• It is easy to have an image of the completed house.

Disadvantages of House Builders

• Low degree of design flexibility.
• Cost performance will deteriorate if it deviates from the standard specifications.
• There is a difference in the level of sales staff.

building contractor 

In Japan, when anyone buys land to build a house, the first thing that comes to mind may be a house builder.
Indeed, commercials and websites of major housebuilders emphasize attractive points such as eco-friendly, stylish, and sturdy-looking houses, excellent staff, and high construction techniques.

In addition, many will be attracted to the services that only a large company can provide.

They don’t have to worry about going under like a small construction company. They have good management, including after-sales service. They will say things like, “We can give you a long-term warranty, so you don’t have to worry. They will say things like, “We can give you a long-term warranty, so you don’t have to worry.

It is true that such advertising claims and the sense of branding and security that only a major company can provide are very “sticking” to consumers who are making a major purchase such as a house.

But as with any company, few properly inform consumers of their company’s disadvantages.

The biggest disadvantage of a house builder is the lack of freedom in design. For better or worse, they are standardized products, so it is impossible to do anything out of the standard. Even if you could, it would be relatively expensive. You cannot say, “I want to use this manufacturer’s bathtub,” or “I want to have a different contractor put in the furniture before the house is delivered. If you want to bring in such particulars, you will be told to do it after the house is handed over.

It is good if the home you envision and the house builder’s offerings match, but if they do not, you may be forced to make considerable compromises.

There are other differences in the level of sales staff, and moreover, they are forced to impose their own mysterious company’s convenience. The shape and conditions of the land may be beyond the control of the house builder due to their standards. The running costs are not insignificant, as it is necessary to undergo specified maintenance in order to receive a long-term warranty. These and other disadvantages should not be ignored.

Just because it is a large company does not mean that all of its salespeople are capable of doing their jobs. Rather, they are trained with manuals, and many of them have difficulty dealing with unexpected problems.

b. Engineering firms

The form of these companies varies, with some being locally based as so-called “regional construction companies” and others having multiple stores. In general, construction companies build houses on a smaller scale than housebuilders.

One of the main characteristics of the small scale is that each construction company has its own distinct strengths and weaknesses.

If you can find a good construction company, you are more likely to be able to build a house exactly the way you want it.

Another major attraction of a construction company is the possibility of building a house at a relatively low price because they do not spend as much on advertising and sales as major housebuilders.

However, this is also a case-by-case basis. If a construction company builds a house with the same specifications as a house builder, the house builder will have an advantage in terms of cost. House-builders cut costs by ordering large quantities of materials, and small construction companies cannot compete in this area. If you want to build a house with a floor plan and specifications that cannot be done by a house builder, you should ask a construction company to do it.

Also, construction companies are smaller than house builders, so their construction period tends to be longer.

There are also still some people who cannot communicate well due to old-fashioned craftsmanship, which may cause a great deal of stress.

In addition, the number of salesmen and staff is limited, so unless you are actively involved in the house construction process, unexpected problems, extended construction periods due to communication gaps, and additional construction work may occur along the way.

Therefore, it is preferable to ask a construction company to build your own home if you have some knowledge of home construction or if you can get help from a trusted professional.

Advantages of a construction company

• Depending on how it is done, the house can be built at a low cost.
• More flexibility in design than housebuilders.
• The sense of security of being local and being able to see the face of the brewer.

Disadvantages of a construction company

• If the same specifications as those of the house builder are used, cost advantages cannot be obtained.
• Communication with craftsmen can be difficult.
• There are variations in quality among construction companies and craftsmen, and the construction period tends to be long.

Professional view of construction companies

When I introduce a construction company, my customers’ biggest concern is about defective housing and bankruptcy.

Certainly, if a small construction company is found to have a major defect in the house, will they take care of it, and if they go bankrupt, what will happen to them afterwards? And if they go bankrupt, what happens afterwards?

However, the Housing Quality Assurance Promotion Act (HQA), which came into effect in April 2000, requires that construction companies assume responsibility for any serious defects found in structural parts of newly built houses for 10 years after delivery.

Even if the builder goes bankrupt in the meantime, the “Housing Defects Warranty Performance Law” provides compensation for serious defects.

Therefore, please do not just make the decision to ask a major house builder to build your house instead of a construction company simply because you are vaguely concerned.

Rather, just as with a house builder, the decision is based on a thorough understanding of the advantages and disadvantages of letting a construction company build the house.

c. Design firm

If you want to build your own home exactly as you envisioned it, the best way is to hire a design firm.

There are various types of design firms, each specializing in a different field, including individual firms with a single architect, so-called “atelier-type design firms” consisting of multiple architects and staff, and larger-scale organizational design firms.

Since organizational design firms mainly deal with large-scale commercial and public facilities, it is likely that an individual design firm or an atelier-type design firm will be asked to build your own home.

I imagine that many individual design firms are community-based, while many atelier-style design firms specialize in design with a high design quality.

The design office is in charge of the design, and the actual construction is done by the construction company commissioned by the office. The design office (architect) then manages the process of completing the house.

The biggest advantage of hiring a design office is that you can build a truly one-of-a-kind house that is full of originality, as the office draws the plans from scratch according to the site and not just the client’s request.

A design office can create a floor plan that is difficult to achieve with a house builder or construction company, or a house with a high level of design! If you have a strong desire to build a house like this, it may be a good idea to ask a design office to help you.

However, building a house from scratch with a free design means that it will cost more. Also, the time it takes to complete a house is inevitably longer than that of a house builder or a construction company.

It’s not surprising, since it’s the same thing as having a suit made to order, rather than a hanging suit.

Also, a well-designed house, which is the selling point of a design firm, does not necessarily mean that it will be easy to live in. On the contrary, you should be prepared for the possibility that the house will be difficult to use, costly to maintain, and difficult to sell in the future. What is ideal for you may not be the same for others.

In addition, design firms, by their very nature, inevitably rely heavily on the skill of their architects.

Therefore, the person who chooses the architect must be able to determine whether the house he or she envisions can be built exactly as it is within the budget, and whether it is good or bad, including compatibility with the architect.

Therefore, if you ask a design firm to help you, you will need more than a construction firm to have considerable architectural knowledge or to enlist the help of a trusted professional.

Advantages of a Design Firm

• Very high degree of freedom
• You can expect the best design for the land you purchase.
• You can realize your own passion for the house.

Disadvantages of design firms

• cost much
• Longer construction period.
• You have to be able to spot a skilled architect

Professional Views of Design Firms

All the houses on the office’s website are full of originality, are lovely, and make me wish I had a house like this one.

But remember that asking a design firm to build a house is a lot of work.

The pictures on the website may indeed be nice, but a well-designed house is not necessarily a good place to live.

Many design firms, especially design firms, ignore constructability and price in order to make the house look good anyway.

Since the actual construction will be done by the construction company, some design firms will have several companies quote each other and ask the construction company with the lowest price to do the work. I have seen cases where the design drawings were too rough, and the construction company was later told that the price was too high, resulting in disputes with the construction company or changes to the specifications.

Of course, you can ask an architect who is skilled and who also considers budget and constructability, but you still need a professional eye and help to determine this.

Some architects have a unique sensibility, so it is not as if they can explain everything to you, a layman, in an easy-to-understand manner.

Later, when I receive an explanation, I am often puzzled, “Oh, that’s what you meant? Often, people are puzzled.

It may be common sense to the architect, but it is often new to you. This is where communication gaps arise and cause problems.

Not only design firms, but this industry is full of after-the-fact junkets anyway. This is why explanations of important matters are so detailed. At the very end of the process, it is presented as if it has been explained thoroughly.

But really, that’s not enough.

From the beginning, we will discuss your opinions and whether or not a house that will allow you to live the happy life you envision can be built within your budget. After that, we want you to decide which home builder you would like to work with.

I feel that housebuilders are making a concerted effort to bridge the communication gap with consumers in this regard. Construction firms still have a long way to go. And design firms themselves are often not thinking ahead. So please be prepared for a very tough time.