Thai Law Insights

Note on Late Completion of Construction Under Thai Law

Hathaiphat Lertkamonnimit

In many instances, contractors fail to meet agreed upon deadlines in completing construction, costing companies millions of baht. Consequently, companies will seek legal action against contractors for breach of contract, referring to the date of completion promised or agreed to by the contractors. Such claims are often dismissed in Court as a result of companies failing to object to or challenge the late delivery of construction on the date of completion, constituting a waiver of rights to sue for damages.

However, with proper advice from legal counsel, companies can avoid such difficulties in obtaining compensation to which they are entitled for their contractors' failure to deliver their work in a timely fashion. Costly and unfortunate mistakes, such as the waiver of rights to sue by failing to object to late delivery, can be prevented with the presence of competent lawyers providing counsel.