Italian-Thai Joint Venture Liable for Rebuilding Collapsed SAI Building, Says Prosecutor

[Georgealbert]

 

Picture courtesy of Matichon.

 

Dr Thanakrit Worathanachakul, a senior prosecutor and legal expert, has confirmed that under the terms of the construction contract, the Italian-Thai Joint Venture (ITD-CRCC) is responsible for reconstructing the collapsed State Audit Office (SAI) building, even if the collapse was caused by an earthquake.

 

The ITD-CRCC Joint Venture, a partnership between Italian-Thai Development Public Company Limited and China Railway No. 10 (Thailand) Company Limited, won the construction contract after submitting the lowest bid, valued at 2.136 billion baht. However, following an earthquake on 28 March 2025, the building collapsed, raising questions about liability under the contract.

 

In a Facebook post, Dr Thanakrit, who lectures on procedural law and evidence law at Thammasat University, Ramkhamhaeng University, the National Institute of Development Administration (NIDA), and Mae Fah Luang University, provided a legal analysis of the case.

 

Based on standard public procurement contracts issued under Thailand’s 2017 Public Procurement and Supplies Administration Act, the contract likely follows the electronic bidding format approved by the Comptroller General’s Department. The agreement was structured as a lump-sum contract with progress payments made in instalments.

 

Under Clause 11, Paragraph 2 of the standard construction contract, if the collapse occurred due to the contractor’s fault or an unforeseen event such as an earthquake, but before the final handover, the contractor is obliged to rebuild the structure at their own expense. The contractor cannot claim additional payment from the SAI unless the collapse resulted from the employer’s fault.

 

Furthermore, Clause 13 stipulates that the contractor cannot evade responsibility by citing the presence of an inspection committee or project supervisors. In this case, the construction was overseen by the PKW Joint Venture as the project supervisor.

 

Regarding injuries and fatalities, Clause 12, Paragraph 3 of the contract requires the contractor to provide insurance coverage for all workers. Meanwhile, Clause 11, Paragraph 1 holds the contractor accountable for any accidents, damages, or hazards arising from their operations.

 

As a result, injured workers or the families of those who died will receive compensation from the contractor’s insurance policy and other legal entitlements. For third parties affected by the collapse, the contractor is fully liable for damages.

 

The legal implications of this case underscore the strict contractual obligations of public sector contractors and serve as a warning for companies undertaking major government projects.

 

-- 2025-03-30

 

[Hawaiian]

"unless the collapse resulted from the employer's fault," will be the issue.  The contractor will argue "poor design" was the cause.  Either this will dispute will go on and on or the contractor will declare bankruptcy. 

[flyingtlger]

1 hour ago, Georgealbert said:

the Italian-Thai Joint Venture (ITD-CRCC) is responsible for reconstructing the collapsed State Audit Office (SAI) building, even if the collapse was caused by an earthquake.

 

I have a feeling the company will just declare bankruptcy and walk away.....

[watchcat]

1 hour ago, Georgealbert said:

the Italian-Thai Joint Venture (ITD-CRCC)

 

Is this the same company with the black panter killer but i think he's still in jail.

[Ralf001]

15 minutes ago, watchcat said:

 

Is this the same company with the black panter killer but i think he's still in jail.

 

Premchai would be out now.

 

[watchcat]

2 hours ago, Ralf001 said:

 

Premchai would be out now.

 

 

Thanks.

[JoePai]

3 hours ago, Hawaiian said:

"unless the collapse resulted from the employer's fault," will be the issue.  The contractor will argue "poor design" was the cause.  Either this will dispute will go on and on or the contractor will declare bankruptcy. 

if the collapse occurred due to the contractor’s fault or an unforeseen event such as an earthquake

 

Do you not think this is a salient point ???

[steven100]

TIT ....   anything is possible,  even if they are requested to rebuild it at their cost,  they will just appeal, delay,  not build,  build a little ....  and it'll drag on and on for years.

 

and another possibility, is someone gets a nice fat envelope and they win the case and walk.  

 

and the corruption just goes around and around again ....   Lol

[marin]

3 hours ago, flyingtlger said:

I have a feeling the company will just declare bankruptcy and walk away.....

You do know that ItalThai is the biggest construction firm in Thailand by far. Aint gonna happen

[Hawaiian]

22 minutes ago, JoePai said:

if the collapse occurred due to the contractor’s fault or an unforeseen event such as an earthquake

 

Do you not think this is a salient point ???

It is.  But the argument might go like this.  If it were designed properly it would have withstood the earthquake.  The question is who would buy that argument.

[Hawaiian]

2 minutes ago, marin said:

You do know that ItalThai is the biggest construction firm in Thailand by far. Aint gonna happen

Too big to fail?  Heard that one before.

[Don Giovanni]

Premchai the endangered animal killer strikes again!

 

Now he has (possibly) over 100 deaths on his hands.

 

The fat pig should never have been let out in the first place, let alone be allowed to commission new buildings again..

 

The Don.

[connda]

The builder's will claim Force Majeure.  If that doesn't work - bankruptcy.  Fyi.  Sometimes the lowest bid isn't the best course of action.  I seriously doubt that the Italian/Thai partnership will be rebuilding that structure.  The deepest pockets will end up covering the cost (hello Thai government)!  🇹🇭

[BKKBike09]

12 minutes ago, marin said:

You do know that ItalThai is the biggest construction firm in Thailand by far. Aint gonna happen

Ah. But major rival Sino-Thai is owned by the family of our PM In Waiting, Anutin. And if Ital-Thai is Pheua Thai aligned (I don't know about Premchai Karnasuta's politics), they are in for a rough ride.

 

A question no-one is asking is "why did the State Audit Office need a 30-something storey building in the first place?" - yet another wasteful (snouts in trough) public procurement project. There are far too many government agencies etc in vast new buildings that are mostly empty.

[Don Giovanni]

Just now, connda said:

The deepest pockets will end up covering the cost (hello Thai government)!  🇹🇭

You mean the tax payer then?

 

The Don.

[connda]

5 hours ago, Georgealbert said:

The legal implications of this case underscore the strict contractual obligations of public sector contractors and serve as a warning for companies undertaking major government projects.

The "warning" will most likely be interpreted by international corporations as "think twice before bidding on construction jobs and agreeing to contractual obligations in Thailand," and "beware - this is earthquake prone territories."

[connda]

2 minutes ago, BKKBike09 said:

Ah. But major rival Sino-Thai is owned by the family of our PM In Waiting, Anutin. And if Ital-Thai is Pheua Thai aligned (I don't know about Premchai Karnasuta's politics), they are in for a rough ride.

 

A question no-one is asking is "why did the State Audit Office need a 30-something storey building in the first place?" - yet another wasteful (snouts in trough) public procurement project. There are far too many government agencies etc in vast new buildings that are mostly empty.

The quick answer:  This Is Thailand - Home to those whose lives are defined by status, and status defined by unnecessary opulence. Hence, every Thai government big wig needs a grand, ostentatious, palatial domain over which to govern. 
Thailand should hire DOGE to cut out the fat.

[connda]

6 minutes ago, Don Giovanni said:

You mean the tax payer then?

 

The Don.

Yep.

[Yagoda]

That building was Chinese engineering. Nuff said. 

 

 

[Don Giovanni]

3 minutes ago, connda said:

Yep.

What a disgrace.

 

The Don.

[connda]

4 hours ago, Hawaiian said:

"unless the collapse resulted from the employer's fault," will be the issue.  The contractor will argue "poor design" was the cause.  Either this will dispute will go on and on or the contractor will declare bankruptcy. 

My guess at the upcoming fiasco. 
It's the contractor's fault.
It's the architect's fault.
It's the structural engineer's fault.
It's the cement contractor's fault.
It's the rebar manufacturer's fault.
It's the fault of all the Myanmar laborers.

 

4 minutes ago, Yagoda said:

That building was Chinese engineering. Nuff said.

Thanks!  I would have missed that one:
It's the Chinese fault!

[Don Giovanni]

5 minutes ago, Yagoda said:

That building was Chinese engineering. Nuff said. 

 

 

Was it though?

 

Ital-Thai & Premchai the endangered animal butcherer were also involved in the project.

 

The Don.

[Sierra Tango]

So,

1. Who were the architects? 

2. Who are PKW supervising the project and to what degree did they control compliance

3. How did the Thai government audit department not have construction code compliance audits conducted?

4. Did Ital-Thai actually have insurance cover for the workers or did they palm that off on to the Subbies who more than likely didn't bother?

We will probably never know the answers but with a disaster this lethal and this expensive there has to be heads roll, surely.

[JAG]

18 minutes ago, BKKBike09 said:

A question no-one is asking is "why did the State Audit Office need a 30-something storey building in the first place?" -

Well, obviously they needed a place to hold audit inquiries into whether they need to build such premises!

 

What is deeply sad is that the lawyers are gathering even whilst there are so many trapped, some may still be alive, under the rubble

[Yagoda]

4 minutes ago, Don Giovanni said:

Was it though?

 

Ital-Thai & Premchai the endangered animal butcherer were also involved in the project.

 

The Don.

They are involved in a lot of projects. Tons of buildings being built. Why did that one collapse?

 

Here is a premise for you: Chinese construction is cut cornered and cheap. China does best in countries where they can buy the locals with filled envelopes.

[Don Giovanni]

4 minutes ago, Yagoda said:

They are involved in a lot of projects. Tons of buildings being built. Why did that one collapse?

 

Here is a premise for you: Chinese construction is cut cornered and cheap. China does best in countries where they can buy the locals with filled envelopes.

I agree, as they did in Cambodia..

 

So has Thailand already begun selling out their land to Chinese developers then, by your theory?

 

That's heresy I tell you!

Thais should be out protesting if that is the case.

 

The Don.

[Rampant Rabbit]

pah theyll just drag it thru the courts for 20+ years

[Rampant Rabbit]

7 minutes ago, Sierra Tango said:

So,

1. Who were the architects? 

2. Who are PKW supervising the project and to what degree did they control compliance

3. How did the Thai government audit department not have construction code compliance audits conducted?

4. Did Ital-Thai actually have insurance cover for the workers or did they palm that off on to the Subbies who more than likely didn't bother?

We will probably never know the answers but with a disaster this lethal and this expensive there has to be heads roll, surely.

did any roll in the burning nightclub fiasco fire?

[hotsun]

2 minutes ago, Don Giovanni said:

I agree, as they did in Cambodia..

 

So has Thailand already begun selling out their land to Chinese developers then, by your theory?

 

That's heresy I tell you!

Thais should be out protesting if that is the case.

 

The Don.

Thais blame foreigners for their problems, they are absolutely smitten over their politicians though

[Rampant Rabbit]

30 minutes ago, BKKBike09 said:

Ah. But major rival Sino-Thai is owned by the family of our PM In Waiting, Anutin. And if Ital-Thai is Pheua Thai aligned (I don't know about Premchai Karnasuta's politics), they are in for a rough ride.

 

A question no-one is asking is "why did the State Audit Office need a 30-something storey building in the first place?" - yet another wasteful (snouts in trough) public procurement project. There are far too many government agencies etc in vast new buildings that are mostly empty.

 look in any small province they have umpteen massive govt buildings  mostly emtpy  Pranburi has a  whole raft of dumbass OTT govt buildings