The government has decided to take decisive measures to address safety standards in national construction projects, with the Prime Minister issuing a direct order to the Ministry of Transport to terminate two major contracts with Italian-Thai following a series of severe accidents.

The ‘last straw’ was the crane collapse onto a railway in Sikhiu District, along with the accidents at Rama II Road construction sites, which severely impacted public safety and lives. This contract termination is accompanied by the blacklisting of the company to tighten contractor selection standards and serve as a warning to other operators to maintain the highest safety standards.

Beyond disciplinary action against the contractors, the Prime Minister addressed the circulation of old footage from the period when the Bhumjaithai Party oversaw the Ministry of Transport—specifically images of contract signings with China. The PM views the resurfacing of such content as having a hidden political agenda.

The government stated that bringing up past issues for criticism at this time is merely an attempt at political attacks and creating conflict within the coalition. They called for an end to ‘mud-slinging’ or shifting blame, insisting that the ultimate goal now must be to accelerate the resolution of delayed infrastructure projects and ensure sustainable safety for all road users.

“This case reflects a clear stance by the government in dealing with irresponsible private firms, while simultaneously attempting to quell internal conflicts within the administration’s image. This is to ensure that the country’s major infrastructure projects can proceed without further political interference.”

On January 15, 2025, at Government House, Mr. Anutin Charnvirakul, Prime Minister and Minister of Interior, briefed the media on the conclusions of an emergency meeting held to address construction accidents. He reaffirmed the government’s resolution to direct the Ministry of Transport to terminate contracts with Italian-Thai Development PCL (ITD) for problematic projects and to blacklist the firm to prevent further loss of life and public property.

The Prime Minister stated that the series of recurring crane collapses is a terrifying matter and poses a high risk to the public. Consequently, the meeting reached a consensus to implement strict legal measures. The Ministry of Transport has been instructed to prepare for contract terminations based on existing provisions, while coordinating with the Office of the Attorney General and the Office of the Council of State to explore blacklisting procedures. Such measures are deemed necessary to safeguard the country’s image and credibility.

Government tightens contractor standards, set to implement a ‘Performance Scorecard’ and a more rigorous liability system for damages. The government announced its commitment to elevating oversight of state construction projects to ensure greater transparency and accountability, especially in cases of job abandonment or contract termination due to severe issues. A project handover mechanism has been established to ensure national infrastructure remains uninterrupted, alongside stringent civil measures to safeguard the national budget.

Management of Outstanding Work and Liabilities of Original Contractors

 In cases where a project is terminated mid-way due to subpar standards or delays, the government has established guidelines to immediately secure a new contractor for the remaining scope of work to ensure timely completion. Any budgetary gaps or damages resulting from the change in contractors will be handled as follows:

• Forfeiture of Performance Security: The bank guarantee will be seized to compensate for initial damages.
• Right to Claim Additional Damages: If the government incurs costs exceeding the original contract value to hire a new contractor, it reserves the legal right to seek recourse and recover those excess expenses from the original contractor.

Contractor Performance Scorecard: A Strict Future Measure. Progress on the ‘Performance Scorecard’ measure—a policy initiated to record work history and deduct points from substandard firms—is now in its final stages. The Comptroller General’s Department is finalizing the regulations, with implementation expected between late January and early February.