The Phuket News Premier League predictions The Phuket News Kata Rocks The Phuket News
The Phuket News Business News
The Phuket News Phuket | Thailand | World | Business | Q&A | Weird World XML, RSS, Feed
The Phuket News The Phuket News
The Phuket News

Phuket Law: Legal protection from builders

PHUKET: After 10 years of success of consumer protection for condominium units purchased from a developer in Thailand, consumer protection for the construction of residential houses is now celebrating its first year of enactment.

construction, land, property,


Jerrold Kippen

Saturday 16 December 2017, 11:00AM


The law includes rights that are not specifically mentioned in the construction agreement. Photo: The Phuket News / file
The law includes rights that are not specifically mentioned in the construction agreement. Photo: The Phuket News / file

On January 1, 2017, an official “Notification” was issued called the “Notice of the Contract Committee for the business of residential building construction which shall be contract-controlled (2016)”.

Under this Notification, residential house construction contracts were officially included among the list of contracts that are regulated by the Consumer Protection Act (1999).

How can you benefit from this?

In short, if you hire a contractor to construct your house in Thailand, you now have rights that are applicable to your agreement with the contractor regardless of whether your agreement with the contractor explicitly includes these rights or even if your agreement with the contractor provides for terms contrary to these rights.

And these rights have teeth. The Act specifies that should your contractor fail to comply with the Notification the contractor may be subject to imprisonment for a term not exceeding one year, or a fine not exceeding B100,000, or both.

The Notification outlines several terms a contractor must now include in all residential construction contracts, such as:

• the details of the parties to the contract with the parties’ addresses and identifications, the place and date of contract, the purpose of the construction, a description of the building, and the construction location;

• the details of the construction costs, including VAT;

• a description of the construction materials, including quantity and price;

• the payment schedule in accordance with work progress;

• the due date of the building permit application, to be measured from the contract execution date;

• the completion date, to be measured from the date the building permit is received;

• the contractor’s liability for defects, such as five (5) years for structure and one (1) year for component parts and equipment;

• lists of the construction materials, including quantity and prices;

• your right to have a third party remedy construction defects in case of any failure by the contractor to remedy the same; and

• your termination rights in case of delays in starting construction or completion including a contractual penalty of 0.01% of the construction price per day (limited to 10% of construction price) for late delivery.

The Notification also provides that certain terms are now prohibited in residential construction contracts, such as:

• the exclusion or limitation of liability for breach of contract by the contractor;

• termination by the contractor without written notice or under any circumstances where you are not in material breach of the contract;

• the contractor’s right to claim partial payments before the due date as set out in the contract if you are not in default of any payment or otherwise in breach of the contract;

• the contractor’s right to amend the contract’s construction specifications, prices, or conditions, or to add any additional obligations with which you must comply, without your written consent;

• the contractor’s right not to refund your payments;

• restrictions to your inspection rights;

• the contractor’s right to assign the contract without your consent;

• that any of the construction and equipment for which you have paid will be owned by the contractor at any time; or that

• should you fail to inspect the work within any specified time you will be deemed to have accepted the construction, including any construction defects.

Thailand’s inclusion of condominium development sale and purchase agreements in the list of contracts protected by the Consumer Protection Act 10 years ago has been of significant benefit to investors and, thereby, to Thailand’s real estate market and greater economy. We expect that this year’s inclusion of residential construction agreements under the Act will yield similar benefits.


DUENSING KIPPEN is an international law firm specialising in business transaction and dispute resolution matters, with offices in Bangkok and Phuket, Thailand and affiliated offices in over 50 other countries. Visit them at: duensingkippen.com

 

 

The Phuket News
The Phuket News
Comment on this story
* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.
Comments Here:

Comments Left: Characters
Username:
Password:
E-mail: (No Hotmail, Live, MSN and Outlook accepted at this time)
Security:
   => Forget password?

Be the first to comment.

The Phuket News
The Phuket News The Phuket News The Phuket News
The Phuket News
Share this
The Phuket News
Have a news tip-off? Click here
The Phuket News
Related stories
The Phuket News
Phuket community

Recent Comments


Premchai again ‘too busy’ to see police

Why not just issue an arrest warrant like they do for others like our previous PM for skipping court attendance. On the other hand Boss got away with ...(Read More)


Phuket wastewater-treatment plant to empty into Nai Harn Lake

All pigs revved up on the tarmac ready to fly. The trouble with domestic wastewater is its heavy metal content. Wastewater treatment plants do not ge...(Read More)


Phuket wastewater-treatment plant to empty into Nai Harn Lake

Nothing to worry about, waste water treatment plants “never” discharge dirty water :-) ...(Read More)



Phuket wastewater-treatment plant to empty into Nai Harn Lake

Do the 3 large hotels and The Sands apts located along Naiharn Lake and beach Naiharn and big restaurants having their own waste water treatment syste...(Read More)


Premchai again ‘too busy’ to see police

This class society is lost with this "Hi-So untouchable criminals" Not the country, but they themselves rule matters their way. Super uppe...(Read More)


As watch saga drags on, all eyes on NACC

All eyes on NACC...who doesn't give a lick about guilt or innocence...but it's all about face. This line "He has since claimed they belon...(Read More)


Pickleball comes to Phuket

If you are traveling to Phuket with or without your pickleball paddles and balls, you can still play with our equipment at the Phuket Sports and Tenni...(Read More)


Phuket man, 19, injured in high speed collision with power pole

Those pesky power poles keep jumping out in front of people something should be done about them immediately ...(Read More)


First day of traffic lights sees slew of accidents

I read the report and just shake my head what was the driver of the 4x4 thinking ...(Read More)

The Phuket News
PHUKET NEWS
Phuket
Thailand
World
Business
Q A
Weird World
ARCHIVE
POLL
CURRENCY
WEATHER
PHUKET TIDE TABLE
The Phuket News PHUKET LIFE
Phuket Arts
Phuket Community
Phuket Culture
Phuket Dining
Phuket Education
Phuket Entertainment
Phuket Environment
Phuket Health
Phuket People
Phuket Technology
Phuket Travel
World Entertainment
Photo Galleries
The Phuket News PHUKET SPORT
Phuket
Thailand
World
SURF REPORT
PREDICTIONS
The Phuket News PHUKET CLASSIFIEDS
Phuket Buy and Sell
Phuket Jobs
Phuket Property
Phuket Cars and Boats
Phuket Community
Phuket Services
SEARCH CLASSIFIEDS
POST CLASSIFIED
The Phuket News The Phuket News PHUKET EVENTS
Phuket Event listings
Phuket Event calendar
Buy Tickets
POST EVENT
The Phuket News PHUKET DIRECTORY
Phuket Bars, pubs and clubs
Phuket Hotels and villas
Phuket Restaurants
Phuket Yellow Pages
POST LISTING
The Phuket News BARGAINS
The Phuket News ABOUT US
The Company
Distribution points
Subscribe
Advertise with us
Pay for advert
Contact us
CONTESTS
Content Google Map
Site map
Australian Visa Services
 
Currency - The Phuket News   Weather Report - The Phuket News   Surf Report - The Phuket News
LinkedIn - The Phuket News   Twitter - The Phuket News   YouTube - The Phuket News   Facebook - The Phuket News
Copyright © 2018 Class Act Media. All rights reserved. | Website usage terms and conditions | Privacy and Confidentiality Statement.