Section 2. Launching a Building Management Business

An elite team of architects was assigned to the job. Design and supervision of the construction were carried out by Watanabe, while Togo Murano was the head draftsman, and structural design was handled by Tachu Naito, a professor at Waseda University and an authority on earthquake-resistant structures. Prior to the Daibiru project, Watanabe had been a pioneer in the Japanese architecture world, with an impressive résumé that included the former Kyoto Station, the former Industrial Bank of Japan Head Office, and the O.S.K. Lines Kobe Branch Building. He was a pioneer in the field of architecture in Japan and was involved with numerous buildings in the early days of our company.

In February 1924, the company signed the main construction contract with Obayashi Corporation by special order. This contract specified the “actual costs plus additional remuneration” calculation method. The main points of this method are as follows: (1) In principle, the client purchases all necessary materials and pays only overhead labor costs to the contractor. (2) The contractor guarantees a certain construction schedule and pays specific compensation in the case of construction schedule delays. (3) If actual costs exceed or fall short of the construction estimate determined at the start of the contract, the construction costs are adjusted by adding or subtracting a percentage of that amount to or from the original construction costs.

The groundbreaking ceremony took place on April 12, 1924, and construction to complete the project got underway.