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Ministry to Target Poor-Performing Contractors with Blacklist

Ministry to Target Poor-Performing Contractors with Blacklist

The Finance Ministry is preparing to implement measures to blacklist contractors that violate government procurement laws.

Deputy Finance Minister Julapun Amornvivat announced that, in addition to considering blacklisting contractors involved in public sector projects that infringe on procurement rules, the ministry will also look into downgrading those whose violations are not severe enough for blacklisting.

Mr. Julapun stated that discussions will take place with the Interior Ministry to ensure that the blacklisting procedures for government project contractors are rigorous and comprehensive.

A source from the Finance Ministry, who spoke on the condition of anonymity, indicated that the regulations related to blacklisting contractors are anticipated to be submitted to the cabinet for approval on Tuesday.

Initially, these regulations will focus solely on construction projects managed by the Department of Highways and the Department of Rural Roads, with building construction projects not yet included.

Mr. Julapun mentioned that a ministerial regulation is being drafted to establish eligibility criteria for entrepreneurs wishing to register for procurement, aimed at enhancing safety measures and monitoring the duration of contractors’ operations.

If the cabinet approves the proposal, the Comptroller-General’s Department will then draft a ministerial regulation regarding public procurement and supplies administration, which will outline criteria for evaluating contractor performance.

The plan includes introducing a “contractor report card” that will impose penalties on underperforming contractors, including downgrading and removal from the construction registry, according to the source.

This initiative is expected to be implemented this month.

In fiscal 2024, government agencies primarily utilized a specific procurement method—totaling 6.3 million projects, which represented 97.6% of all announced procurement projects.

Among awarded procurement projects, the electronic bidding method achieved the highest total procurement value at 785 billion baht, accounting for 50.3% of the total. The specific procurement method followed, valued at 588 billion baht or 37.6%, while the selection method totaled 159 billion baht (10.2%).

Additionally, electronic market procurement realized the biggest budget savings, reaching up to 19.3% of the allocated procurement budget.

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