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Contracting To The Government


Bagwan

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Three contractors are bidding to repair the fences around Government House. One is from Khon Kaen, another is from Udon Thani and the third, is from Chonburi. All three go with a Thai civil servant official to examine the fences,

The Khon Kaen contractor takes out a tape measure and does measuring, then works some figures with a pencil. "Well," he says,"I figure the job will run about 7 million baht. 4 million for materials, 2 million for my crew and 1 million profit for me."

The Udon Thani contractor also does some measuring and figuring, and then says, "I can do this job for 5 million; 3 million for materials, 1 million for my crew, and 1 million profit for me..

The Chonburi contractor doesn't measure or figure, but leans to the Thai civil servant and whispers, "9 million."

The official, incredulous, says, "You didn't even measure like the other guys! How did you come up with such a high figure?

The Chonburi contractor whispers back, "2 million for me, 2 million for you, and we hire the guy from Udon to do the work."

Done!" replies the government official. And that, my friends, is how government contracting works!</

Edited by Bagwan
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The way my logical brain works is.....if the civil servant dude has 9 mil to spend on this project, why not just pocket the 4 mil and hire the Udon guy, cutting out the Chonburi guy altogether?

But seriously, good one.

That would be an obvious crime, you cannot steal 4 million from the state coffers.

You can however elect to pick overpriced contracts. (And silently get kickbacks, as long as no-one finds out.)

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Well that certainly is not unique to Thailand whistling.gif

In some other countries I know of it's the official's brother/cousin/uncle/nephew who goes to register a service provider company as soon as he hears a contract will be available. Why get others to do it when you can earn all the money and kickbacks yourself?

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This is very true.

I have a Thai 'business man' mate, who wants to get the hel_l out of Thailand because he's sick to death of corruption. He's tired of 'paying off' certain people to get jobs. If he can't afford the 'payoffs', he doesn't get work, which ultimately means "end of business".

It's a vicious circle.

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