THE PAVILIONS PHUKET EPL Prediction Competition 2018-2019 Kata Rocks
Login | Create Account Poll Currency Weather Facebook Youtube Search

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.

constructionlandproperty
By 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;

QSI International School Phuket

• 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

 

 

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:
Security:

Be the first to comment.

Have a news tip-off? Click here

 

Phuket community
Civil action to be taken against shot Phuket driver’s family

Not sure how "saw" became "so", technology.. amazing....(Read More)


Indonesia teen rescued after seven weeks adrift at sea

Amazing ordeal for this kid. The fact that he agreed to be moored 125 km out to sea by himself is p...(Read More)


The Thai wives who never said ‘I do’

It feels like everything about foreigners is immigration wise very well in order. Report-report, 2 n...(Read More)


Drug blitz at full moon party

A small island, allowing up to 30,000 night party goers? On a drugs island? Are they nuts? Where pol...(Read More)


Quarter of capital’s public vans to be retired

Mhh, bit by bit I get hold on thai thinking. 1: stop with beach life guards, look later how to handl...(Read More)


Back to the drawing board for ‘Phoenix’ salvage

Obviously no calculations done to assess the submerged weight of the vessel ie. full of water. No bo...(Read More)


Life Cycling: The health benefits of a good pedalling

Whether it's to improve your health and fitness, as an environmental choice, taking up cycling c...(Read More)


Civil action to be taken against shot Phuket driver’s family

Has anyone actually seen the video, I so a pick up, that is NOT mowing down three motorcyclists wait...(Read More)


Civil action to be taken against shot Phuket driver’s family

So finally the Phuket police take drastic action that was needed to protect the general public from ...(Read More)


Phuket boat mechanic dies after getting neck caught in engine

Yeah...he slipped and got his neck caught...a likely story. Probably more like Capt fired up the eng...(Read More)


 

Melbourne Cup 2018