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Bangkok Post
Bangkok Post
National

Govt seeks tougher procurement law

The government plans to tighten public procurement rules to reduce abandoned state projects and improve contractor accountability, Deputy Prime Minister Pakorn Nilprapunt said.

Mr Pakorn on Sunday outlined the progress of proposed amendments to the Public Procurement and Supplies Administration Act, saying the revised draft has been forwarded to Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas and is undergoing formal review.

He said the amendments have three main objectives.

The first is to strengthen the contractor selection process. Greater weight will be given to the overall benefit to the state, contractors' capabilities and their past performance to reduce the risk of public projects being abandoned.

Mr Pakorn said many government projects had been left unfinished because procurement rules, based on Comptroller General's Department regulations, placed excessive emphasis on selecting the lowest bidder.

He said the lowest price does not always guarantee quality, noting some contractors submit unrealistically low bids, receive advance payments and later abandon projects.

The second objective is to clearly define contractors' responsibilities before work begins. Contracts would specify liability for damage or accidents caused during construction.

Minor violations could initially result in warnings, but repeated offences could allow the government to terminate contracts immediately.

Mr Pakorn said the current process for terminating contracts with private firms is too complicated and time-consuming, leaving many stalled projects inactive for years.

The third objective is to require contractors to provide financial guarantees before filing appeals in procurement disputes.

The deputy prime minister also said investigations into corruption should be separated from project implementation. Public projects that benefit communities should proceed while investigations continue independently, rather than being suspended indefinitely.

Otherwise, he warned, unfinished projects across the country could remain abandoned, resulting in substantial waste of public funds.

Mr Pakorn said the Comptroller General's Department will hold a public hearing on the proposed amendments.

The process is expected to take about two months before the bill is submitted to the cabinet and then to the House of Representatives for consideration in September.

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