Transport Ministry Tightens Rules On Abandoned Construction Projects
Thailand's Transport Ministry has announced stricter penalties for contractors who abandon construction projects, requiring mandatory liability insurance and detailed safety plans to prevent accidents. The regulations follow past incidents
Deputy Prime Minister and Transport Minister Pipat Ratchakitprakarn announced draft regulations on July 8, 2025 at Government House to impose stricter penalties on construction contractors who abandon projects. The Transport Ministry considered environmental factors, particularly rising material costs due to war impacts and economic challenges, when assessing why contractors abandon work. The ministry emphasized safety as its highest priority, requiring all contractors to submit detailed safety plans and obtain liability insurance to protect affected parties and prevent repeat incidents like past accidents on Rama 2 Road, the Si Khiw incident in Nakhon Ratchasima, and tunnel collapse from landslides in Chiang Rai. The new law mandates contractors carry third-party liability insurance at minimum. Pipat stated the Transport Ministry is holding a brainstorming seminar under "MOT New Chapter" on July 13 with working groups covering all transport modes—land, rail, air, and water. He acknowledged the government has only been working for three months and most transport projects require considerable time, so measuring KPIs and showing results within this period is unrealistic. However, the ministry is actively working and reporting progress while focusing on improving the country's overall logistics system.
