Bangkok: Thammasat University academics are urging the government to implement more comprehensive measures to prevent contractors from abandoning government projects. They commend the recent amendment to the Public Procurement Act but emphasize that additional steps are necessary to ensure project completion.
According to Thai News Agency, Dr. Surasak Boonyanukulkit from Thammasat University's Faculty of Law highlighted that while the government's initiative to amend the Public Procurement and Government Supplies Management Act B.E. 2560 (2017) is a positive development, it falls short in addressing the root causes of project abandonment. The amendments, as outlined by Deputy Prime Minister Pakorn Nilapraphan, aim to shift contractor selection criteria from the lowest bid to factors like government benefit, contractor capability, and past performance. However, Dr. Surasak notes that these changes alone may not sufficiently mitigate the risks associated with contractor abandonment and project delays.
High-value construction projects often encounter issues such as contractor abandonment due to inadequate selection processes. The previous guidelines focused only on basic qualifications, neglecting crucial factors like financial capabilities and the scope of work. Dr. Surasak mentions that contractors frequently face liquidity challenges since government payments are made in installments, forcing them to front the initial costs. This financial strain can lead contractors to take on multiple projects, risking their ability to complete government contracts.
Dr. Surasak also pointed out that although the Public Procurement Act allows for criteria beyond the lowest price, many agencies default to it due to existing regulations. This practice limits officials' discretion and may not be suitable for large-scale projects requiring higher responsibility. To address this, he suggests that amendments to subordinate regulations, particularly those from the Ministry of Finance and Comptroller General's Department, are vital to align with the changes in the Act.
He further recommends creating systems to support the legal provisions, such as evaluating contractor performance based on past government work and establishing a nationwide database for performance tracking. This would provide procurement agencies with crucial information about contractors' histories in government projects.
Dr. Surasak concludes that while the amendment to the Public Procurement Act sets important principles, effective application relies heavily on clear guidelines from subordinate legislation. Additionally, he notes that other aspects of the Procurement Act, such as procurement process control and inspection, require amendments to enhance efficiency and address existing problems comprehensively.