(Itemized Bills) Article 1. Anyperson who will submit to the State a claim for payment for goods or services or for reimbursement for costs of goods or services relative to the accomplishment of any project, production of any goods or provision of any services for the State, Occupation Forces, or the Special Supply Office, shall make an itemized bill, in a form prescribed in orders, and specify therein, all materials and labor used as well as all services other than labor which have been rendered by a third party (hereinafter to be referred to as other services) and he shall specify, with respect to the materials, the kind, standard, quality, quantity and prices, with respect to labor used, the number of workers by occupation catagory and the pay rate, and, with respect to the other services supplies, their categories and prices;provided, that in the following cases, the specification of the price of the goods or service itself shall be sufficient, and no specification may be made as to materials, labor or other services used in their production or provision: 1. Goods or services for which there is a controlled price under the Prices Control Ordinance (hereinafter to be referred to as controlled price). 2. Goods not covered by the controlled price, but totalling no more than 1/2 of one percent of any contract or purchase to which the State is a party. 3. Goods not covered by the controlled price whose purchase is specially assignated by the Finance Minister, but the total of all such purchases, including purchases of "Kodans" as applied mutatis mutandis in Article 4, amounting to no more than 3/10 of one percent of the total National general account expenditures.

Article 2. The prices of materials used and other services rendered and the wage amounts for labor used to be entered in the itemized bill provided for in the preceding Article, shall be computed in accordance with the provisions of the following items: 1. The prices of materials and other services shall be in accordance with the actually used quantities and in accordance with the prices (within the meaning of prices as provided for in Article 2 of the Commodity Prices Control Ordinance;hereinafter the same) not exceeding: a. With respect to materials received by or services supplied to the supplier by another person prior to the establishment of a contract to accomplish a project, produce goods or provide services as provided in Article 1, the controlled prices at the time of the establishment of a contract. b. With respect to materials or other services purchased by the supplier subsequent to the establishment of a contract specified in "a" above, the controlled prices at the time of the purchase of the materials or other services. c. With respect to other materials and services, the controlled prices at the time of the delivery of such materials to the project site. d. With respect to those for which the dates specified in "b" or "c" above are not clear or where the method of acquisition is not clear, the controlled prices specified in "a" above. 2. The pay rate shall be by the actual number of workers employed as well as by occupation category within the prevailing wage rate by occupation category at the time of the use of such labor. The prevailing wage rate by occupation category provided for in the preceding paragraph shall be announced by the competent Minister in the Official Gazette. The controlled prices under Par.1 shall include the amount of the prices relative to the approval provided for in the proviso to Art.3, Par.2 of the Commodity Prices Control Ordinance.

(Written Pledge) Article 3. The person presenting the itemized bill provided for in Article 1 shall prepare a written pledge certifying that the bill is correct and that the cost of the items entered therein have been computed in accordance with the provisions of the preceding Article, and shall sign and seal thereon.

(Application to Local Bodies and Kodans) Article 4. The provisions of the preceding three Articles shall apply mutatis mutandis to any person who will submit a claim for payment or reimbursement to local public bodies or "Kodans" in connection with the accomplishment of any project, production of any goods or supply of services for such local public bodies or "Kodans." In this case, with regard to the application of Item 3 of the proviso in Article 1 to local public bodies, "Goods purchased by the purchase contract designated by the Minister of Finance accounting no more than 3/10 of one percent of the total National general account expenditures" shall read "Goods purchased by the purchase contract amounting no more than 1/10 of the one percent of the total public body general account expenditure of 10,000 yen if the amount does not reach to that amount, and, land or building purchased by the local public body for the excution of its works."

(Application to Sub-Suppliers) Article 5. The provisions of Arts.1 (excepting Items 2 and 3 of the proviso of the same Article) 2 and 3 shall apply mutatis mutandis to such person who had supplied to the supplier any goods or services for which the supplier claims payment or reimbursement as provided for in Article 1 or the preceding Article and submits to the supplier the claim for payment or reimbursement therefore (to be called sub-supplier hereinafter). The sub-supplier shall submit to the supplier without delay the documents provided for in Arts.1 and 3, as applied mutatis mutandis in the preceding paragraph, upon the fulfilment of the contract. If the above sub-supplier fails to fulfill the obligations provided for in the preceding paragraph, he shall be liable for any loss caused thereby to the supplier.

(Validity of Claims and Payments) Article 6. Any person who has a claim to the State for the payment or reimbursement provided for in Article 1 (excluding direct payments to officials, employees and workers employed by the State;the same hereinafter) shall not be entitled to exercise such a claim, unless he submits to the State the proper documents required in Arts.1, 3 and Art.9, Par.1. No Government official (including those who are in charge of disbursing business of the State;hereinafter the same) shall effect the payment or reimbursement as provided for in Article 1 unless the proper documents required in Arts.1, 3, and Art.9, Par.1, have been submitted. The provisions of Paragraph 1 shall apply mutatis mutandis to any person who has a claim for payment or reimbursement as provided for in Article 4 and the provisions of the preceding paragraph shall apply mutatis mutandis to the officials of local public bodies or "Kodans."

(Prepayments and Final Settlement) Article 7. The provisions of the preceding Article shall not apply, with respect to the presentation for payment or reimbursement where there is a special agreement to the effect that part or provisional payment or reimbursement is to be made prior to the fulfilment of a contract covering a project, goods or services provided for in Article 1 (including the amount to be advanced in accordance with a special agreement to the effect that it will be assigned for reimbursement after the fulfilment of the contract). However, no Government official (including officials of local public bodies and "Kodans" ) shall effect any part or provisional payment or reimbursement provided in the preceding paragraph unless the itemized bill provided for in Art.9, Par.1, has been submitted. In a case where a payment has been made in accordance with the agreement mentioned in Paragraph 1, any person who has received such payment, shall submit, to the person who has made the payments, a final account specifying the items provided for in Article 1 (including the cases where Article 1 applied mutatis mutandis in Article 4) within 30 days after the fulfilment of the contract (in cases where a longer period is specially designated by the competent Minister, within the said term). The provisions of Arts.2 and 3 shall apply mutatis mutandis, with respect to the computation of the prices of materials used and other services rendered and of the wage-rate for labor used, which are to be entered in the final account provided for in the preceding paragraph. A sub-supplier shall provide the supplier without delay with the information needed to comply with the preceding two paragraphs. The provisions of Art.5, Par.3 shall apply mutatis mutandis in this case. The provisions of Pars.1 and 2 of the preceding Article shall apply mutatis mutandis in the case of Paragraph 3 where there is a balance to be defrayed after the fulfilment of contract. When the final account provided for in Paragraph 3 indicates that the prepayment for materials, labor or other services has exceeded the claims in the itemized bill, the excess amount shall be returned by the payee.

(Revision of Agreed Amounts) Article 8. When in the itemized bill provided for in Article 1, (including cases where the provisions applies mutatis mutandis in Article 4) or in the final account provided for in Paragraph 3 of the preceding Article the total amounts of the costs by category of materials, of labor, and of other services are less than the total costs in the corresponding category of the agreed amount, the agreed amount shall as is revised to conform to the itemized bill or final account.

(Preliminary Estimates) Article 9. Excluding purchases contracts of goods, any supplier under a contract calling for the accomplishment of a project, production of goods or provision of services, provided for in Article 1, or Article 4, shall, within 30 days after the conclusion of the said contract (in case where a longer period is specially designated by the Finance Minister, within the said term), present to the State, local public bodies, or "Kodan" an itemized bill in which are mentioned detailed items of the estimate amount of the costs of materials, other services and of the wage amount, in accordance with the form prescribed in orders. The provisions of Items 1 and 2 of the proviso in Article 1 shall apply mutatis mutandis to the estimates required in the preceding paragraph. The total amount of the costs of materials, the total amount of the costs of other services, and the total amount of wages entered in the itemized bill submitted in accordance with the provisions of the preceding paragraph, shall be deemed to be the agreed amount to at the time of the conclusion of the contract with respect to each of the total cost of materials, total cost of other services and total of wages.

(Inspection and Reports) Article 10. Competent officials concerned may, whenever necessary after the conclusion of a contract for the purpose of investigation with respect to Article 2 (including cases where the same applies mutatis mutandis in Art.4, Art.5, Par.1 or Art.7, Par.4), question or request reports from the supplier of or his sub-supplier or any other person who has effected transactions with the said supplier concerning such contract, inspect the working place or project site of such person, inspect books, documents and other goods, or question other concerned personnel. The Government, when deemed necessary, may cause the officials of local bodies or "Kodan" to be engaged in the business prescribed in the preceding paragraph.

(Payments of Wages) Article 11. No Government official (including officials of juridical persons designated by orders), shall make any payment of wages in excess of the prevailing wage-rate by Occupational category provided for in Art.2, Par.2. of this Law to workers who fall under any one of the following items: 1. Workers directly working for the Occupation Forces in response to Labor Requisitions. 2. Workers engaged in the projects totally or partially financed by public work funds.

(Application of this Law to Contracts under Law No.60 of 1946) Article 12. In case where the documents required in Arts.1 and 3, Ar.7, Pars.3 and 4 are relative, to a contract falling under Art.1, Par.1 of Law No.60 of 1946 (law pertaining to Special Instances for Government Contracts), such documents shall be presented at the time of the application for the designation of the definite amount provided for in Art.1, Par.1 of the same law. In this case, the documents provided in Arts.1 and 3 and Art.7, Par.2 shall not be required to be presented again when request is made for payment of the final settled sum. The designation of the definite amount provided for in Art.1, Par.1 of Law No.60 may not be effected unless the documents provided for in Arts.1 and 3 and Art.7, Pars.3_and 4 of this Law have been presented. In the case of Paragraph 1 of this Article, provisions of Art.6, Art.7, Par.6 and Art.9 shall not be applicable.

Article 13. The designation of the definite amount provided for in Art.1, Par 1 of Law No.60 of 1946, with regard to the total cost of materials used, of other services rendered, and the total wage amounts for labor used, shall be effected within the sums computed in accordance with the provisions of Article 2 of this Law, respectively.

(Penalties) Article 14. When a person has falsely certified a claim as required in Article 3 and has submitted to the State a bill any constituent item of which is in excess of the respective amount computed according to the provisions of Article 2, a penalty or a fine, irrespectively whether or not a damage has thereby been done to the State, of an amount corresponding to the amount not less than three times but not exceeding four times the excess shall be imposed upon him. When a person has falsely certified a claim as required in Article 3 as applied mutatis mutandis in Article 4 and has submitted to local public bodies or "Kodan" a itemized bill any constituent item of which is in excess of the respective amount computed in accordance with the provisions of Article 2 as applied mutatis mutandis in Article 4, shall be treated the same as in the preceding paragraph. The preceding two provisions shall be applicable mutatis mutandis in the case of the presentation of final account as prescribed in Art.7, Par.3. To the person who contravences the provisions of the preceding three paragraphs, the provisions of Art.54, Par.1 of the Criminal Code, shall not be applied, but other punishment shall, if it is provided for in the provisions of other law, be imposed concurrently.

Aricle 15. Those who fall under each of the following items, shall be liable to the penal servitude of less than six months or a penalty of less than 10,000 yen: 1. Any person who fails to submit the final account required in Art.7, Par.3. 2. Any person who makes a false answer to questions asked in accordance with Article 10. 3. Any person who falsely makes a report requested in accordance with Article 10. 4. Any person who obstructs the questioning or reporting of a third person, or the inspection provided for in Article 10. 5. Any person who fails to maintain the payroll required by Article 108 of the Labor Standards Law, or maintains a payroll falsely entered, or obstructs the questioning or the inspection with respect to the payroll, in cases where the presentation of itemized bills for labor costs or final accounts are required by Arts.1, 4 or Art.5, Par.1, or Art.7, Par.3.

Article 16. When a representative of a juridical person or an agent, an employee or any other person engaged in the business of a juridical person or person has contravened the provisions of the preceding two Articles relevant to transaction of business of the juridical person or person, the penalty as provided for in each of the Articles shall be imposed to the juridical person or person, besides the imposition of penalty to the offender.

Supplementary Provision:

Article 1. The date of the enforcement of this Law shall be determined by Cabinet Order within a period which does not exceed five days from the date of the establishment of the same.

Article 2. With respect to the claims provided for in Arts.1, 4 or Art.5, Par.1, this Law shall apply to materials and labors to be used after the enforcement of this Law and to other services to be supplied after the enforcement of this Law.

Article 3. With respect to the application of this Law to any contract which purports to the accomplishment of a project, production of goods or provision of services provided for in Art.1 or 4, and which has not yet been fulfilled at the time of the enforcement of this Law, "Art.9, Par.1" mentioned in Art.6 and Art.7, Par.2 shall read "Art.4, Par.1 of Supplementary Provisions," "materials" mentioned in Article 8 shall read "materials to be used after the enforcement of this Law," "wages" shall read "wages to be paid for labor to be used after the enforcement of this Law" and "other services" shall read "other services to be supplied after the enforcement of this Law."

Article 4. Excluding contracts for purchases of goods, with respect to any contract calling for the accomplishment of a project, production of goods or provision of services provided for in Art.1 or 4, which has not yet been fulfilled at the time of the enforcement of this Law, the supplier shall submit to the State, local public bodies, or "Kodan," in accordance with orders, an itemized estimate which corresponds to the one provided for in Art.9, Par.1, for that part of the project, goods or services to be effected after the enforcement of this Law, within the agreed amount relative to the contract concerned. The provisions of Art.9, Pars.2 and 3, shall apply mutatis mutandis to the case contemplated in the preceding paragraph.

Article 5. Any supplier or sub-supplier carrying on an activity for which an itemized bill or final account for labor is required by Arts.1, 4 or Art.5, Par.1 or Art.7, Par.3, shall, until such time as the provisions of Article 108 of the Labor Standards Law are applicable, maintain at each project site where in the workers he employs are engaged, and available for inspection by competent officials, a daily payroll of all the workers, listing all workers employed by name, Occupation category, pay-rate and actual pay received by each worker. The Government officials concerned may inspect at any time the payroll provided for in the preceding paragraph or ask questions with respect thereto.

Article 6. Any person who does not maintain or maintains a payroll falsely entered as provided for in Paragraph 1 of the preceding Article shall be liable to a penal servitude not more than six months or a fine not exceeding 10,000 yen. Any person who answers falsely or obstructs the inspection or the questioning of another person as provided for in Paragraph 2 of the preceding Article shall be treated the same as in the preceding paragraph.