Thailand Tightens Rules on Construction Contractors for State Projects

The Comptroller General's Department has revised procurement regulations to screen construction contractors serving the public sector with new penalties including rank demotion and delisting. Director Patricia Mongkolvanic revealed that the Finance Ministry has issued a regulation on public procurement and state asset management (Version 3, B.E. 2569) to assess the performance and capability of construction contractors working on government projects while establishing penalties for those who breach contracts, fail to meet engineering standards, or are grossly negligent, causing harm to public life or state property.

Key provisions include:

1. Applicability: The regulation applies to construction projects worth 5 million baht or more under six agencies including the Irrigation Department, Department of Highways, Department of Rural Roads, Port Authority, Department of Water Resources, and Department of Public Works and Town Planning; high-rise buildings, mega-structures, and public assembly buildings; and all construction projects valued at 1,000 million baht or more with notices and invitations published and contracts signed from July 10, 2569 onward.

2. Assessment Criteria and Damage Scores: Divided into two periods—during contract execution and during defect warranty—with damage scores assigned for various violations such as contract termination under Section 103 (60 points), work not meeting engineering standards or gross negligence causing death (60 points) or serious injury (30 points).

3. Suspension of Proposals and Contracts: Damage scores accumulate and are used to evaluate contractors. If scores reach suspension thresholds, contractors are barred from submitting proposals or entering contracts with state agencies for subsequent projects, with penalties up to 720 days. If a contractor was previously suspended within two years and accumulates additional damage scores, the previous suspension period is deducted from the new one.

4. Appeals and Score Correction: Contractors may appeal assessment results to state agencies within seven working days of receiving scores through the e-GP system. Damage scores are deleted after two years from publication; if a court rules the contractor is not at fault, the score is deleted immediately.

5. Rank Reduction and Delisting: Contractors with 120 or more damage points face rank reduction by one level at set intervals (maximum penalty 1,440 days). After the reduction period, contractors may request reinstatement if they meet standard registration criteria. Contractors reduced to the lowest rank or those in serious cases—such as negligence causing death—may be delisted but can reapply after two years.