Contractors at The Energy Hua Hin 'not paid for many months'

[Bristolian]

http://www.bangkokpost.com/news/general ... any-months

Contractors at The Energy Hua Hin 'not paid for many months'


PHETCHABURI - Contractors at The Energy Hua Hin's condominium project in Cha-am district claim they have not received any payments for many months, are owed 50 million baht and in deep financial trouble.

Representatives of 50 contracting companies gathered in front of the seaside condominium construction site on Phetkasem Road in tambon Cha-am on Tuesday, demanding the developer pay them the money they are owed as they have bills and employees to pay.

The Energy Hua Hin project is owned by Baan Rajprasong Plc. The contractors were hired to work on infastructure services and decorations at the project site.

Kittipong Promsakikorn, 38, of Pathum Thani’s Khlong Luang district, said he had been contracted to install the electrical and communication systems at the project. He had not been paid for the work and was in financial trouble as a result.

His car was under lease and had been seized as he had no money for the monthly instalment. He was also being sued for failing to pay instalments on a house, said Mr Kittipong.

He had to borrow from relatives and loan sharks to pay his workers' wages while awaiting for payment for work due him by the project developer. He had not received any money since early this year.

He kept asking about when he would get the money, but the developer kept citing reasons to delay payments, such as lost documents.

As there were no signs the payments would ever be made, he and other contractors facing the same plight would lodge a complaint with the provincial Damrongtham centre and other relevant agencies asking for help.

During the gathering, no representatives of the project developer showed up. The company does not answer media enquiries.

The Energy Hua Hin project is a large condominium development spread over 180 rai. It is on the coast between Cha-am district of Phetchaburi and Hua Hin district in Prachuap Khiri Khan.

[Khundon1975]

If it were me, when the first payment was not paid, I would down tools and
walk off site. If nothing was forthcoming after that, I would go back and rip out
all the work I had done.
Why carry on for over 8 months, with no payment?

[JW]

About not losing face I guess, they will keep going, no doubt many promises to pay..who is actually behind this project?

[Dannie Boy]

About not losing face I guess, they will keep going, no doubt many promises to pay..who is actually behind this project?

I heard some time ago that the family of two ex-prime ministers were involved?

[buksida]

Help us Prayut! Contractors at The Energy Hua Hin claim 50 million in unpaid bills
Contractors have been pictured in front of a huge condominium project in the Cha-Am – Hua Hin area appealing to the prime minister for help in getting unpaid fees.

Dozens of contractors are involved and some 50 million baht has not been paid to them since the start of the year, reports Daily News.

The project is understood to be The Energy on the beach area between Cha-Am and Hua Hin.

Reporters who went to the scene found only the protesters – there was no sign of anyone from the company at all.

One of the protesters Kittipong Promkasikorn, 38, said he was owed three million baht for electrical work completed at the project. He said that he had lost his vehicle that had been reclaimed by the finance company for non-payment. He was borrowing heavily from relatives to avoid having his house taken by the bank, he said.

All this has been going on since the start of the year and he said that it was not just the contractors who had suffered – many workers were waiting for wages due to them.

“We have had enough,” he said “and we can’t wait any longer. We are suffering and we want the prime minister to look into the case”.

Reporters said that the seafront property is in a prime location and that there are advertisements all around trying to sell units. But all was quiet at the site apart from the protesters.

Source: http://www.dailynews.co.th/regional/528029

[StevePIraq]

If it were me, when the first payment was not paid, I would down tools and
walk off site. If nothing was forthcoming after that, I would go back and rip out
all the work I had done.
Why carry on for over 8 months, with no payment?

It is not always so easy to do as you state, many contracts have clauses allowing the contractor to claim interest on late payment but not allowing you to stop work. You also cannot rip out the work or you would be sued by the main contractor as most contracts have clauses on material ownership and once delivered the materials belong the main contractor even if not paid for.

I have recently been involved in a major international overseas project and the client did not pay any companies for almost one year. If the companies stopped work they were in breach of contract. It is totally unfair but contractors MUST take legal advice before signing contracts and know what they are getting into.

[StevePIraq]

Had a chat with a friend today who is in the property development market, he says many purchasers have not made the follow up payments so now the developer is having financial issues. Many people apparently bought off plan with the intention of selling before the next payment was due, they couldn't sell so now they can't make the payments so the problem moves down the line.
When will people learn that the property market is flooded.

[Bristolian]

Had a chat with a friend today who is in the property development market, he says many purchasers have not made the follow up payments so now the developer is having financial issues. Many people apparently bought off plan with the intention of selling before the next payment was due, they couldn't sell so now they can't make the payments so the problem moves down the line.
When will people learn that the property market is flooded.

Agreed, The warning signs have been clear for the last 5 Years at least. There are simply too many developments to be absorbed by the shrinking demand from BKK.

In today's political scene we see GDP far below regional peers, inflation is dangerously low, despite BBs observation of local artificially hiked dream prices. People have cut back on spending owned funds, credit is increasing.....

I have seen no promotional sales figures for The Energy, since the launch when the developers claimed 79% sales of phase 1

The combination of failed Sales on Phase 1 and now other phases largely completed puts a huge strain in the whole development

Maybe potential buyers actually visited the place and decided that a home in a prison look-alike was not their dream after all.

[Khundon1975]

If it were me, when the first payment was not paid, I would down tools and
walk off site. If nothing was forthcoming after that, I would go back and rip out
all the work I had done.
Why carry on for over 8 months, with no payment?

It is not always so easy to do as you state, many contracts have clauses allowing the contractor to claim interest on late payment but not allowing you to stop work. You also cannot rip out the work or you would be sued by the main contractor as most contracts have clauses on material ownership and once delivered the materials belong the main contractor even if not paid for.

I have recently been involved in a major international overseas project and the client did not pay any companies for almost one year. If the companies stopped work they were in breach of contract. It is totally unfair but contractors MUST take legal advice before signing contracts and know what they are getting into.

Looks like a genius wrote the contract and a fool signed it.

[StevePIraq]

you got it but really the contracts are quite clear as are the brains of many contractors, not just Thai contractors

[huahin4ever]

Someone I know bought an apartment there when they started advertising. Probably 4-5 years ago. He sold with 5 % profit 2 months ago. Lucky to get out without loss I would say.