204 Contractors Left Gvt Projects Unfinished In 2007

[cclub75]

A rather extraordinary news (via ThaiCrisis).

Separately, a Finance Ministry official said the number of contractors quitting government construction projects was on the rise because of increasing material costs. Twenty-one contractors last month left jobs unfinished and the ministry predicts more may follow in their footsteps this month.

Moreover, small and medium-sized contractors are facing difficulty in getting loans from commercial banks. The slowdown in the economy has added to their burden.

The source said contractors who could not find bank loans accounted for 60-70 per cent of those who abandoned projects.

The Comptroller-General’s Department will put those who leave unfinished projects on a blacklist, according to the source. However, contractors with valid reasons might be removed from the list. Some 175 contractors left government projects unfinished in 2006, rising to 204 last year.

Strange because the real push of raw materials prices was in 2007. Therefore, why the gvt had exactly the same problem in 2007 ? Is it like a tradition in Thailand ?

Edited February 21, 2008 by cclub75

[chiang mai]

My guess is that 98% of the people will end up being on the blacklist at some point so then what.

[LivinLOS]

Strange because the real push of raw materials prices was in 2007. Therefore, why the gvt had exactly the same problem in 2007 ? Is it like a tradition in Thailand ?

Boils down to how they do business.. Take a job if it looks (hopefully / possibly) profitable but at the first sniff of a problem run and to hel_l with any corporate or contractual responsibility. Its basically somchai the builder scaled up to corporate level.