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      Thailand Live Saturday 12 October 2024

Phuket underpass construction company dodges fines for another month


rooster59

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Phuket underpass construction company dodges fines for another month


1_20151219113859433_TnYqwJwNWaQjvGBjKzFE

The Samkong Underpass is only 60 per cent complete. Photo: Phuket PR

PHUKET: After months of deadline extensions for the Samkong Underpass project, the Phuket Department of Highways has given the construction company in charge of the project an additional 30-day grace period before it starts to levy hefty fines.

“We will not start fining them 2 million baht a day for about one more month, as we had ordered them to stop working for about 20 days during the Songkran Festival and will be ordering them to stop for about 10 days during the new year celebrations,” Chalermpol Wongkiattikun, project engineer from the Department of Highways, told Phuket Gazette.

Last month, it was announced that Wiwat Construction Co Ltd, the construction company building the 800-million-baht Samkong underpass, had until December 21 to finish the project before the multi-million-baht fines were implemented. However, that deadline has now been pushed back to January.

Full story: http://www.phuketgazette.net/phuket-news/Phuket-underpass-construction-company-dodges-fines-another/62678?desktopversion

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-- Phuket Gazette 2015-12-19

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My guess is that time extensions have been approved...and payment agreed.....a bit of PR wrt fines being applied, which of course won't happen....just how it works....The project will eventually complete and cost overruns won't be published.

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Like for any contract the issuer of the contract (the govt in this case) can waive any contract penalties, loosen contract requirements, etc. This is what the govt appears to be doing to avoid such huge contract penalties which they know would throw the project into court for years and the project completion gets delayed even longer. When the dust settles "if" the govt collects any penalties they will be greatly reduced but the govt can still say they collected a few million baht (which sounds like a lot to the typical Thai) saving the govt money---they are heroes then....promotion time.

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Like for any contract the issuer of the contract (the govt in this case) can waive any contract penalties, loosen contract requirements, etc. This is what the govt appears to be doing to avoid such huge contract penalties which they know would throw the project into court for years and the project completion gets delayed even longer. When the dust settles "if" the govt collects any penalties they will be greatly reduced but the govt can still say they collected a few million baht (which sounds like a lot to the typical Thai) saving the govt money---they are heroes then....promotion time.

I'm sure the Government have already collected a few million baht smile.pngsmile.pngsmile.png

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