Phuket Law: Legal protection from Contractors

About January 1, 2017, a formal “Notification” was issued known as the “Notice of the Contract Committee for the work of residential building construction which will be contract-controlled (2016)”.

Below this Notification, residential house building contracts were formally included among the list of contracts that are governed by the Consumer Protection Act (1999).

How can you benefit from this?

In short, if you hire a contractor to build your house in Thailand, you now have rights that are pertinent to a agreement with the contractor regardless of if your agreement with the contractor expressly includes these rights or perhaps if your agreement with the contractor supplies conditions against such rights.

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

The Notification summarizes several conditions a contractor must now include in all residential building contracts, such as:

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

• the details of the building costs, such as VAT;

• a description of the building materials, such as quantity and price;

• the payment program in Light of labour progress;

• the expected date of the building permit application, to be quantified from the contract execution date;

• the completion datemust be measured from the date that the building permit is obtained;

• the builder’s responsibility for defects, such as five (5) years to structure and one (1) year for part parts and equipment;

• lists of these building materials, such as quantity and costs;

• your best to have a third party treatment building defects in case of any failure by the contractor to cure the same; and

• your termination rights in the event of delays in beginning construction or end including a contractual penalty of 0.01 percent of the building price daily (limited to 10% of building price) for late shipping.

The Notification also provides that specific terms are now banned in residential building contracts, such as:

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

• termination by the contractor without written note or under any circumstances where you Aren’t in material breach of the contract;

• the builder’s best to claim partial payments prior to the due date set out in the contract if you Aren’t in default of any penalties or otherwise in breach of their contract;

• the builder’s appropriate to amend the arrangement’s construction specifications, costs, or conditions, or to add any additional duties by which you must comply, with no written consent;

• the builder’s right not to refund your obligations;

• limitations to your inspection rights;

• the builder’s best to assign the contract without your consent;

• that any of the building and equipment to which you have paid will soon be possessed by the contractor in any given time; or that

• should you fail to inspect the job within any given time you’ll be deemed to have accepted the structure, such as any building defects.

Thailand’s addition of condo growth sale and purchase agreements in the listing of contracts protected by the Consumer Protection Act 10 decades ago has been of significant benefit to investors, therefore, to Thailand’s property marketplace and greater economy. We anticipate that this year’s addition of residential building arrangements under the Act will yield similar benefits.

DUENSING KIPPEN is an global law firm specialising in business trade and dispute resolution matters, with offices in both Bangkok and Phuket, Thailand and affiliated offices in over 50 other countries. See them duensingkippen.com

PHUKET: Following 10 decades of achievement of customer protection for condo units purchased from a developer in Thailand, customer protection for the building of residential homes is now celebrating its first year of enactment.

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

Source

http://www.thephuketnews.com/phuket-law-legal-protection-from-builders-65151.php

source http://www.hardmansolicitors.com/phuket-law-legal-protection-from-contractors/