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President Polpat Karnasuta said the association was pleased with the measures to help the government's contractors, who are suffering from rising costs.

Contractors have shouldered an increase of Bt80 billion in costs over the past two years, accounting for 20 per cent of the Bt400-billion state construction budget. However, as contract values are pre-set, they cannot reimburse compensations.

One of the key measures approved was the improvement of the K factor - the adjustment to the contract value. At present, the value can be adjusted upwards only 4 per cent, even though costs have risen more than 10 per cent. The government also agreed to increase the construction budget 4 per cent and extended construction periods so that steel supply contracts could be stretched out.

"We hope medium-term measures can take effect within 90 days, including the K-factor improvement, adjustment to the median price and raising of steel standards," he said.

Another measure is the waiver, reduction or return of fines collected from contractors failing to meet construction deadlines. This measure will take effect retroactively from last October 1.

Moreover, the government will allow the association to take part in the drafting of relevant laws and regulations, in order to ensure transparency.