Builders must prove abilities as rout looms
Contractors have had to shut shopas government delays public projects
Property companies must select contractor companies who have strong financials and a good track record. This is especially signif¬icant because about 2,000 contractors that employed 200,000 workers have shut shop this year as a result of the economic crisis and the government's delay in inviting bids for projects.
Property Perfect
's chief operating officer Dr Teerachon Manomaipibul said some property companies faced problems when contractors left buildings incomplete. As a result, some of these developers had to suspend their residential projects and refund down payments to customers.Meanwhile, some property com¬panies also adjusted their project price and selected new contractor companies, who have a healthy cash flow and a good track record rather than smallandmedium contractor companies, he said.
Asian Property Development
's senior executive vice president Visanu Suchatlumpong said the company changed its business process to sign deals with larger contractor companies to build its residential project.Meanwhile, the company also adjusted some agreements with the contractor when they faced increas¬es in the alreadyhigh rawmaterial prices.
"Now, property companies have to select contractors who have more experience and a good track record before they sign a deal. Contractors also select propertydevelopment companies carefully before signing the contract because they are also afraid that might not get paid after the work is completed," he said.
The Thai Contractors Association secretary general Aungsurus Areekul said the body recently announced that about 2,000 contractor companies, employing 200,000 workers, had shut shop this year, a number that transaltes into about 20 per cent of total contractors in Thailand.
These closures also resulted in sev
¬eral construction projects being left incomplete. The exact loss from these projects cannot be calculated.The subsequent unemployment would lead to a rise in crime, while unfinished projects would slow down the country
's infrastructure develop¬ment, he said."Our business' prospect has been dull. Although the cabinet approved the measures to ease contractors' mis
ery - caused by unfair price adjustments when rawmaterial costs rose - the officers in the concerned depart¬ments have not taken action on those measures, yet," he said.To urge the government to make the measures more effective, the asso
ciation plans to submit another peti¬tion to the prime minister who will be appointed this week."We don't know what to do to help local contractors survive this crisis. More companies are expected to close down soon if more construction proj
¬ects in the government's pipeline are not approved," he said.He also called on financial insti
¬tutes to ease the pressure on compa¬nies that lack liquidity currently.OTHER BUSINESS
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