Italian-Thai Joint Venture Liable for Rebuilding Collapsed State Audit Office (SAI) Building caused by 28 March 2025 earthquake, Says Prosecutor
Dr Thanakrit Worathanachakul, a senior prosecutor and legal expert, has confirmed that under the terms of the construction contract, the Italian-Thai Joint Venture (ITD-CRCC) is responsible for reconstructing the collapsed State Audit Office (SAI) building, even if the collapse was caused by an earthquake.
The ITD-CRCC Joint Venture, a partnership between Italian-Thai Development Public Company Limited and China Railway No. 10 (Thailand) Company Limited, won the construction contract after submitting the lowest bid, valued at 2.136 billion baht. However, following an earthquake on 28 March 2025, the building collapsed, raising questions about liability under the contract.
In a Facebook post, Dr Thanakrit, who lectures on procedural law and evidence law at Thammasat University, Ramkhamhaeng University, the National Institute of Development Administration (NIDA), and Mae Fah Luang University, provided a legal analysis of the case.
Based on standard public procurement contracts issued under Thailand’s 2017 Public Procurement and Supplies Administration Act, the contract likely follows the electronic bidding format approved by the Comptroller General’s Department. The agreement was structured as a lump-sum contract with progress payments made in instalments.
Under Clause 11, Paragraph 2 of the standard construction contract, if the collapse occurred due to the contractor’s fault or an unforeseen event such as an earthquake, but before the final handover, the contractor is obliged to rebuild the structure at their own expense. The contractor cannot claim additional payment from the SAI unless the collapse resulted from the employer’s fault.
Furthermore, Clause 13 stipulates that the contractor cannot evade responsibility by citing the presence of an inspection committee or project supervisors. In this case, the construction was overseen by the PKW Joint Venture as the project supervisor.
Regarding injuries and fatalities, Clause 12, Paragraph 3 of the contract requires the contractor to provide insurance coverage for all workers. Meanwhile, Clause 11, Paragraph 1 holds the contractor accountable for any accidents, damages, or hazards arising from their operations.
As a result, injured workers or the families of those who died will receive compensation from the contractor’s insurance policy and other legal entitlements. For third parties affected by the collapse, the contractor is fully liable for damages.
The legal implications of this case underscore the strict contractual obligations of public sector contractors and serve as a warning for companies undertaking major government projects.
Source: https://aseannow.com/topic/1356182-italian-thai-joint-venture-liable-for-rebuilding-collapsed-sai-building-says-prosecutor/
