Failed underpass company to continue project with hefty fines

[webfact]

Failed underpass company to continue project with hefty fines
Phuket Gazette


Construction is 42 per cent behind schedule with only about 60 per cent of the project completed. Photo: Highways Department

PHUKET: -- Construction on the long awaited Samkong underpass will continue under its current contractor despite a 2 million baht-per-day fine.

Wiwat Construction Co Ltd was given a December 21 completion date for the more than 800-million-baht project before the per diem fine was to be levied. However, due to mandatory closure during the Songkran and New Year holidays, a 30-day grace period was granted, further pushing the date to January 22.

“The company chose to continue the job with the fine because they do not want to lose their right to bid on other government projects,” Samak Luedwonghad, director of the Phuket Highways Office told the Phuket Gazette.

“I think they will do their best to finish and we will push them as much as possible,” he added.

Full story: http://www.phuketgazette.net/phuket-news/Failed-underpass-company-continue-project-hefty-fines/62868?desktopversion#ad-image-0


-- Phuket Gazette 2016-01-13

[Somtamnication]

LOL! God, I love this country.

[inzman]

Will they finish the other 42 % by jan 22?

[Just1Voice]

Finish, hell. They'll declare "bankruptcy" and close the company down. Then wait and open it again under a new name.

[LivinginKata]

  On 1/13/2016 at 7:09 AM, Just1Voice said:

Finish, hell. They'll declare "bankruptcy" and close the company down. Then wait and open it again under a new name.

Exactly, but don't they also have the Chalong underpass contract.

[kinmaew]

Did they ever think of getting Leighton or Lend Lease to do this sort of stuff - Done on time and quality infrastructure - Naa farangs not allowed to build in Thailand and here are the results

[Jimi007]

  On 1/13/2016 at 7:21 AM, LivinginKata said:

  On 1/13/2016 at 7:09 AM, Just1Voice said:

Finish, hell. They'll declare "bankruptcy" and close the company down. Then wait and open it again under a new name.

Exactly, but don't they also have the Chalong underpass contract.

Yes they do have that contract. We can only hope they fold before they start building that one.

[LivinginKata]

  On 1/13/2016 at 7:23 AM, kinmaew said:

Did they ever think of getting Leighton or Lend Lease to do this sort of stuff - Done on time and quality infrastructure - Naa farangs not allowed to build in Thailand and here are the results

A falang partner to a Thai compnay is allowed. For exmaple Italian-Thai company who developed much of the Bangkok rail transit system.

[eisfeld]

  On 1/13/2016 at 8:06 AM, LivinginKata said:

  On 1/13/2016 at 7:23 AM, kinmaew said:

Did they ever think of getting Leighton or Lend Lease to do this sort of stuff - Done on time and quality infrastructure - Naa farangs not allowed to build in Thailand and here are the results

A falang partner to a Thai compnay is allowed. For exmaple Italian-Thai company who developed much of the Bangkok rail transit system.

I thought I've seen Italian-Thai signs along the construction at bypass road and the Central intersection.

Or maybe it was only near the Central intersection and the bypass one isn't built by the same company?

[Doc46]

  On 1/13/2016 at 7:04 AM, inzman said:

Will they finish the other 42 % by jan 22?

No Problem,,,They Know all the SHORTCUTS

[stevenl]

  On 1/13/2016 at 9:38 AM, eisfeld said:

  On 1/13/2016 at 8:06 AM, LivinginKata said:

  On 1/13/2016 at 7:23 AM, kinmaew said:

Did they ever think of getting Leighton or Lend Lease to do this sort of stuff - Done on time and quality infrastructure - Naa farangs not allowed to build in Thailand and here are the results

A falang partner to a Thai compnay is allowed. For exmaple Italian-Thai company who developed much of the Bangkok rail transit system.

I thought I've seen Italian-Thai signs along the construction at bypass road and the Central intersection.

Or maybe it was only near the Central intersection and the bypass one isn't built by the same company?

Yes, they did Central and are doing Bypass. But Chalong and Tesco intersection are done by a different company.

[LivinginKata]

  On 1/13/2016 at 9:38 AM, eisfeld said:

  On 1/13/2016 at 8:06 AM, LivinginKata said:

A falang partner to a Thai compnay is allowed. For exmaple Italian-Thai company who developed much of the Bangkok rail transit system.

I thought I've seen Italian-Thai signs along the construction at bypass road and the Central intersection.

Or maybe it was only near the Central intersection and the bypass one isn't built by the same company?

A quick Google search shows they have the end of bypass contract --->

http://www.itd.co.th/files/investor/en/CSD%20048%20E_%20.pdf

And previous work at Phuket airport --->

http://www.itd.co.th/files/investor/en/14039601.pdf

[bearpolar]

Italian Thai are the only company worth pronouncing their name in phuket

[metisdead]

An incoherent post has been removed.

[schlog]

  On 1/13/2016 at 7:25 AM, Jimi007 said:

  On 1/13/2016 at 7:21 AM, LivinginKata said:

  On 1/13/2016 at 7:09 AM, Just1Voice said:

Finish, hell. They'll declare "bankruptcy" and close the company down. Then wait and open it again under a new name.

Exactly, but don't they also have the Chalong underpass contract.

Yes they do have that contract. We can only hope they fold before they start building that one.

Perfect time for them to declare bankruptcy when they have got the money for Chalong completely and before they have to pay the fines for Lotus underpass.....so let me guess Chalong finished 28% and then the game might be over.

[Ulic]

2 million baht a day late penalty. Somehow I just don't see it being paid. Will it be deducted from

the charge. Have they been paid in full and negotiate a discount in the fine. I really am curious

as I just can't see it happening. 800 million baht project and 400 million (going to be at least 200

days late) in penalties.

[LivinginKata]

  On 1/13/2016 at 11:23 AM, Ulic said:

2 million baht a day late penalty. Somehow I just don't see it being paid. Will it be deducted from

the charge. Have they been paid in full and negotiate a discount in the fine. I really am curious

as I just can't see it happening. 800 million baht project and 400 million (going to be at least 200

days late) in penalties.

I would be astonished if they will be even close to paid in full (but who knows in Thai contracts). I have no doubt that theer will be much much negotiation (wink wink) about the fine situation

[Dap]

As late as they are and under the gun at 2 mil a day,

I would be very suspect of the finished product

[Jimi007]

  On 1/13/2016 at 10:26 AM, schlog said:

  On 1/13/2016 at 7:25 AM, Jimi007 said:

  On 1/13/2016 at 7:21 AM, LivinginKata said:

  On 1/13/2016 at 7:09 AM, Just1Voice said:

Finish, hell. They'll declare "bankruptcy" and close the company down. Then wait and open it again under a new name.

Exactly, but don't they also have the Chalong underpass contract.

Yes they do have that contract. We can only hope they fold before they start building that one.

Perfect time for them to declare bankruptcy when they have got the money for Chalong completely and before they have to pay the fines for Lotus underpass.....so let me guess Chalong finished 28% and then the game might be over.

The Chalong underpass really hasn't started. They have to move the power lines first, but instead they're working on the old surface street drainage! This will be a nightmare! I bet they hit an aquifer!

[Colabamumbai]

Which government officer owns the company???

[NamKangMan]

  On 1/13/2016 at 9:41 AM, Doc46 said:

  On 1/13/2016 at 7:04 AM, inzman said:

Will they finish the other 42 % by jan 22?

No Problem,,,They Know all the SHORTCUTS

Let's hope those "shortcuts" don't involve pouring less concrete.

[NamKangMan]

  On 1/13/2016 at 1:17 PM, Colabamumbai said:

Which government officer owns the company???

Don't you mean, which company staff member owns the Government?

[TheCruncher]

  On 1/13/2016 at 8:06 AM, LivinginKata said:

  On 1/13/2016 at 7:23 AM, kinmaew said:

Did they ever think of getting Leighton or Lend Lease to do this sort of stuff - Done on time and quality infrastructure - Naa farangs not allowed to build in Thailand and here are the results

A falang partner to a Thai compnay is allowed. For exmaple Italian-Thai company who developed much of the Bangkok rail transit system.

Italian - Thai is a 100% Thai company. Always been.

Though foreign companies are allowed to build in Thailand. The elevated Highway Bangkok - Chonburi was built by a foreign company.

Also a tollway in Rangsit was built buy a German company, though they had to wait a few decades to get paid.

[bearpolar]

Gotta give props to the man that is making the bypass underpass a success

[TheCruncher]

  On 1/13/2016 at 1:58 PM, bearpolar said:

Gotta give props to the man that is making the bypass underpass a success

Not sure about the purpose of your post pointing out the foreign independent director, but a director is something different from a shareholder or a partner.

[SOTIRIOS]

....Songkran and New Year = 30 days.....???

[scorecard]

  On 1/13/2016 at 7:09 AM, Just1Voice said:

Finish, hell. They'll declare "bankruptcy" and close the company down. Then wait and open it again under a new name.

'Don't want to close the company because then they couldn't bid for other contracts.'

With their track record they should no chance in hell of ever getting more public purse contracts, regardless of the company name.

[FangFerang]

Since they are getting 5 million per day, their profit ratio just took an acceptable bite.

If they were associated with the "reviled government form before" they would have been shut down.

[ChrisY1]

  On 1/13/2016 at 9:38 AM, eisfeld said:

  On 1/13/2016 at 8:06 AM, LivinginKata said:

  On 1/13/2016 at 7:23 AM, kinmaew said:

Did they ever think of getting Leighton or Lend Lease to do this sort of stuff - Done on time and quality infrastructure - Naa farangs not allowed to build in Thailand and here are the results

A falang partner to a Thai compnay is allowed. For exmaple Italian-Thai company who developed much of the Bangkok rail transit system.

I thought I've seen Italian-Thai signs along the construction at bypass road and the Central intersection.

Or maybe it was only near the Central intersection and the bypass one isn't built by the same company?

ITD is wholly Thai owned and managed now since the death of the Italian partner some years ago......but it's larger companies such as ITD, which are the types of contractors that should be engaged for major civil works....they have the knowledge.

[sebastion]

  On 1/13/2016 at 1:58 PM, bearpolar said:

Gotta give props to the man that is making the bypass underpass a success

All i can see is a whole lot of nepotism.