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Thai police chief not worried about compensation ruling


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Police chief not worried about compensation ruling
Jessada Jantharak
The Nation

BANGKOK: -- THE NATIONAL police chief is not concerned about a ruling handed down by a Chiang Mai court on Wednesday that it pay Bt96.9 million in compensation to PCC Development and Construction Co for cancelling its contract to build police stations nationwide.

Pol General Jakthip Chaijinda said he has yet to receive a report about the latest ruling and he would have to consider the details.

"I think this is not worrying because there is an agency to handle this matter," he said.

The Chiang Mai Administrative Court on Wednesday ordered the Royal Thai Police to pay the firm Bt96,970,433 in 60 days after it ruled that the firm completed some part of the Bt5.84-billion project to construct 396 replacement stations in 2011-2012.

The court also ordered the police to return to the firm a Bt292.4-million performance bond at Government Savings Bank's Chang Pheuk Gate branch.

The police cancelled the project contract with PCC in April 2013, after the firm failed to complete it within the third extended deadline in March 2013.

PCC then filed a lawsuit against the police to demand Bt1 billion in compensation, claiming that the contract's cancellation was unlawful and that it was police that breached the terms by failing to hand over land plots, approve construction plans and pay construction costs in a timely fashion.

Source: http://www.nationmultimedia.com/national/Police-chief-not-worried-about-compensation-ruling-30270003.html

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-- The Nation 2015-10-02

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He should obide by the contract terms and court has ruled. He is not god and will have top return the damages to the contractors simple

He can look at it all he wants he must pay our be forced to pay

He is showing disregard for the law

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Of course the Chief is not worried as the money is not his but from

citizens taxes which they continually squander at will. Though this

is often the case he should have said nothing. Reminds me of Alfred E.

Newman " What me worry ? " ( Courtesy of Mad Magazine )

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If compensation came out of the chief's budget, he would be worried.

Terminating the contract was a hasty act. Did the government consider the company's litigative position before doing so? It doesn't appear so.

If the company violated the performance terms of the contract, ie., missing deadlines and milestones, there should have been contract provisions for the government to get redress. Let the company otherwise declare cancellation of the contract and be sued for breach of contract.

Rather than cancelling the contract and in lieu of exercising any default provisions in the contract (of which there may have been none), the government should have instead sued the company for breach of contract while not interrupting the project. If the company can prove fault lies with the government, the company should be compensated for the resulting delays and visa versa - contract remains in force and the project continues.

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I feel for the new chief tomato.

One can only hope that the 1 billion baht compensation claim is rejected, and that the RTP appeal the Chiang Mai Administrative Court decision.

At least the Bt96,970,433 the RTP must pay the Chiang Mai based company PCC is for work already completed. The original contract was to build 396 police stations across the country at a cost of 5.848 billion baht!

As for the performance bond – if there was a clause in the contract to that effect, then there MUST be some penalty for failure to complete an agreed contract (especially as the contract was cancelled). Typically, it’s up to the contractor to make themselves aware of anything that could cause project delays before they sign on the dotted line.

The original contract was for work between March 2011 and June 2012, but the deadline was extended three times, out to March 2013. According to reports, only 12% of the project was completed over 755 days – even for Thai’s that is very slow progress!

You’ve only got to drive around parts of Thailand today to still see the unfinished buildings at police compounds.

Essential historical info on this saga at:

http://www.nationmultimedia.com/national/Police-to-blame-for-construction-delay-PCC-30200541.html

http://englishnews.thaipbs.or.th/more-charges-to-be-filed-against-police-stations-constructor

http://www.pressreader.com/thailand/bangkok-post/20151002/281565174576135/TextView

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