Letter to Thaivisa: The Energy hit back at contractors' claims

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Letter to Thaivisa: The Energy hit back at contractors' claims

 

File photo

 

HUA HIN: -- The executive of the company building The Energy condominium in Cha-Am/Hua Hin has hit back at the contractors who say the company owes them 50 million baht since the turn of the year.

 

In a letter to Thaivisa following yesterday's story translated from the Thai press the company says that the reason the contractors have not been paid is because their work is not up to standard.

 

The letter comes from Chanok Chaisiri of the company building the mega project on Petchkasem Road, namely Ban Rachprasong Co Ltd (Mahachon).

 

Chanok said that the company wished to put the record straight following the claims from several dozen contractors. Chanok said: "The problem is that their work (the contractors') is not of the required quality according to building standards".

 

Money would be withheld until the standards are met.

 

Chanok pointed out that the company have asked the contractors to come in to find a solution to the problem and they were urged to hurry up so that the rooms can be presented on time to the owners who have ordered them.

 

Chanok stressed that the company have been proactive in the matter and want the situation resolved quickly for the benefit of their customers. "The work needs to be done according to the standards laid out and needs to fulfil the expectations of the customers", Chanok added.

 

Many contractors appeared in front of the half finished project on Tuesday calling for help from the Prime Minister.

 

The Thai press reported Tuesday that no one from the company was at the site except the angry protesters out front.

 

-- © Copyright Thai Visa News 2016-10-06

[aussiandrew]

I hope they were having regular documented walk throughts with all parties concerned. Pictures would have given a better understanding of the issues.

[mercman24]

wow that's a dam good excuse, must remember that one, on the other hand i have seen some thai "workmanship" all self taught of course. lol ! so the jury is out on this one.

[NCC1701A]

I live in Hua Hin and they have been working on this for what seems like forever.

 

You have to see this giant complex to believe it.

 

I wonder if the condo market is actually slowing down? 

 

Would you buy a condo at a project where the developer said the contractors work was sub standard?

 

 

[chakatee]

Chanok related to Trump?

[maoro2013]

Normal practice, where I come from, is to have a retention to cover performance and defects liability. If the contractor has the ability the client would accept bank guarantees or insurance bonds to cover the same risks.

 

This does not amount to not paying the contractors.

 

Need to know more about this before saying too  much, but it sounds like the developer has his own problems, probably cashflow.

[whatproblem]

That's what you get when you employ Thais ,substandard work ,corners cut at every turn ,I talking from experience 

[kmj]

The whole place just looks like mass student housing plus a 6 star hotel ( self rated ) at the front, 6 star really ?

[KIWIBATCH]

Seems like The Energy spokesperson has just shot himself and the project in the foot big time......now..... how many potential buyers are going to look elsewhere after the spokesman's comment..... (Chanok said: "The problem is that their work (the contractors') is not of the required quality according to building standards".)....and what is worse is that when Thai workers do a "fix it" job the end result is worse still......

[dieseldave1951]

59 minutes ago, whatproblem said:

That's what you get when you employ Thais ,substandard work ,corners cut at every turn ,I talking from experience 

maybe not Thai workers i think mostly from Maynmar/Cambodia you know the people who work for peanuts, you should see the ramshackle tin on-site huts that purports to be living accommodation with kids running about all over the place.

[NCC1701A]

1997 it was the developers who ran out of money because they were not selling units.

 

And construction stopped. the rest is history.

 

we have had a huge increase in the number of condos in hua hin.

 

i guess there are buyers for all these new condo units.

 

[licka]

1 hour ago, whatproblem said:

That's what you get when you employ Thais ,substandard work ,corners cut at every turn ,I talking from experience 

You might try Mexicans next time    no work permits

[TPI]

4 hours ago, mercman24 said:

wow that's a dam good excuse, must remember that one, on the other hand i have seen some thai "workmanship" all self taught of course. lol ! so the jury is out on this one.

I've worked in the construction industry for some time, some contractors ignore the specs and try to pull some really amazing stunts! One tried to get away with fitting A/C controls to the walls with no wires going to them, another tried to have passed, pipe fittings that went into the wall but nowhere else! After they finish (in their mind) they want the total amount owed, full knowing that 10% is held as a guarantee for 12 months! It's all part of the "game".  

[jacko45k]

4 hours ago, mercman24 said:

wow that's a dam good excuse, must remember that one, on the other hand i have seen some thai "workmanship" all self taught of course. lol ! so the jury is out on this one.

It was actually expected to be done up to standard?

Very optimistic.

[TGIR]

Why as the work been stopped on this project for months?  Are they waiting for the "substandard work" to be brought up to "standards" before they decide to continue the build?  No-one on the site appears to indicate no sales or administrative personnel are on the job.......hard to sell something that isn't finished.  What government agency is responsible for permitting, inspecting and oversight on such a big project?  Anyone?

[slapout]

The requirement for any subcontractor providing a '' bank preformance bond'' in the amount of the subcontractor quote seems to have been overlooked in this business agreement. I do not think we have heard ''the rest of the story'' from either side on this disagreement.

 

But then I am used to hearing different discriptions when 2 people observe and discribe the same thing when money is owed/involved.

[hgma]

Most problems have their origin in contract with Main-Contractor whereby he can , unless explicit prohibited, hire sub-contractor (after subcontractors or chang's) and thus devalue the contracts signed to wc paper as Thailand has no law on chain responsibility.

(chain responsibility acts on ALL contractors who are hired or appointed by head contractor(s)

A 10K/day fine IF etc etc looks and sounds good but is worthless when getting the law involved....civil, as Thai law sees unlawfull contracting as civil cases, unless somebody dies......they won't act....but smile!!

Believe me i know.......i have been there.

[catinthehat]

1 hour ago, TGIR said:

Why as the work been stopped on this project for months?  Are they waiting for the "substandard work" to be brought up to "standards" before they decide to continue the build?  No-one on the site appears to indicate no sales or administrative personnel are on the job.......hard to sell something that isn't finished.  What government agency is responsible for permitting, inspecting and oversight on such a big project?  Anyone?

 

All said officials from the provincial governor down were duly compensated for this before the project could even begin.

[james2m]

7 hours ago, kmj said:

The whole place just looks like mass student housing plus a 6 star hotel ( self rated ) at the front, 6 star really ?

You can't say plus 6 star hotel, it's only the shell of a 6 star hotel! They were selling this on the basis "it's going to have top tier restaurant and coffee shop like Macdonalds and Starbucks"! Hmm sounds like the real 6 star deal!

[james2m]

7 hours ago, KIWIBATCH said:

Seems like The Energy spokesperson has just shot himself and the project in the foot big time......now..... how many potential buyers are going to look elsewhere after the spokesman's comment..... (Chanok said: "The problem is that their work (the contractors') is not of the required quality according to building standards".)....and what is worse is that when Thai workers do a "fix it" job the end result is worse still......

Believe me, it's sub standard. I had a look around. There was a 2cm difference in width from one side of a 1m window to the other, the windows weren't level tiles all over the rooms were broken, the door frames and french windows too, and the usual weirdness with AC units that direct heat back into the rooms. These were the 'completed' rooms. But they have managed to install some beautiful prancing horse statues all over the place!

[ChrisY1]

9 hours ago, chakatee said:

Chanok related to Trump?

No.....but likely the Shinawatra or Damapong clans

[Xircal]

Some contractors do like to save money.

 

 

[55Jay]

You've got to have a capable, experienced internal QA inspector force, or hire an outside contractor to inspect everything on near continuous basis, footings to finishings.  "You get what you inspect".  Maybe easier said than done in Thailand.