Contractors issue ultimatum

At a seminar entitled "Suffer and Solutions for Contractors", 360 members of the Thai Contractors Association under His Majesty the King's patronage - including big firms like Italian-Thai, Ch Karnchang and Sino-Thai - demanded the government revise outdated bidding terms and conditions within 30 days.

"We have not yet decided what to do if the government doesn't help us solve our problems. But most participants agreed to take some action such as stop bidding for government projects, cease work on ongoing projects or protest at Government House if there is no action in a month," association president Polpat Karnasuta said.

The association has already proposed 10 relief measures to Industry Minister Suwit Khunkitti and Finance Minister Surapong Suebeonglee, but received no response from the government.

Contractors saw their costs jump 25 per cent, mainly for steel and copper, but the value of government contracts can be revised upwards only 4 per cent.

Since August, steel prices have more than doubled. Based on a construction budget of Bt200 billion in fiscal 2008, the actual cost would surge to Bt250 million.

"If we exit from the business or suspend work, this would cause a chain reaction for others including banks, suppliers and construction material makers," Polpat said.

Secretary-general Angsurus Areekul said more than a million workers are now in the industry and they could suffer if their employers go out of business.

Some members urged the government to ease steel prices by allowing imports.