Finance Ministry fast-tracks ‘contractor rating book’ after crane incident

The crane collapse incident in Si Khiew, Nakhon Ratchasima, which crushed a passenger train, has raised significant concerns regarding safety standards and penalties for government contractors. 

In response, Prime Minister Anutin Charnvirakul has instructed the Comptroller General's Department (CGD) under the Ministry of Finance to expedite legislation for a blacklist of contractors.

Lavaron Sangsnit, Permanent Secretary of the Ministry of Finance, confirmed that the CGD is working on a contractor rating book, which is supported by existing ministerial regulations. However, additional orders are required for its implementation, and the CGD expects to complete the process by the end of January 2026.

“The contractor rating book will track contractors working with the government, deducting points for negligence leading to accidents,” he explained. “This system will prevent contractors from being awarded further government contracts within a specified period, enhancing oversight and accountability.”

Regarding blacklisting, under the Public Procurement and Supplies Administration Act, the government can blacklist contractors based on five or six conditions if they meet the criteria. However, the CGD cannot unilaterally blacklist contractors. Rather, state agencies responsible for the contracts must report any violations for review.

When a contracting agency identifies a breach of contract, it must submit the details to the CGD. A committee will then determine whether the breach meets the criteria for blacklisting. 

"Previously, blacklisting has occurred every month. Therefore, this mechanism has already been in place, but it must start with the contracting agencies, which are best placed to know whether their contractors are complying with the terms of the agreement,” Lavaron said.

Patricia Mongkhonvanit, Director-General of the CGD, stated that after the incident, the Prime Minister personally instructed the CGD to work closely with other agencies to close legal gaps and prevent similar incidents in the future. The CGD has accepted this directive and is committed to acting swiftly and effectively.

Furthermore, the CGD is pushing forward with ministerial regulations to support the contractor rating book, aimed at addressing issues with contractors in the special category who have not been demoted despite mistakes. These regulations have already been published in the Royal Gazette.

By the end of January, the CGD will propose the details of the point-deduction system and the conditions under which a contractor’s registration can be revoked to the Procurement and Pricing Committees for approval.

“This new ministerial regulation will give the government the power to downgrade contractors, deduct points, and suspend them from bidding on contracts, particularly for serious negligence leading to damage or harm to state property. The scoring system will apply to new bidding projects only,” Patricia said.

For ongoing construction contracts, if an incident occurs after the new regulations are enacted, the new criteria can be used immediately to consider the revocation of registration, provided the project-owning agency submits the issue for review. However, the scoring system will only apply to new contracts.

Regarding blacklisting contractors involved in accidents, the current Public Procurement and Supplies Administration Act allows the CGD to declare non-performing contractors under six specified conditions. 

However, the CGD cannot impose blacklisting independently. It must follow the proper process, where the contracting agency reviews the situation and submits a proposal to the Ministry of Finance for further action.