Circumstance of Contractors Who Abandoned the Public Construction Projects

Abstract

Transparency on procurement of public construction project still need remedies. If the bribe has been paid during procurement procedure, resulting in undermining of free competition in the business and finally ended up with low quality of construction work due to an incompetent contractor. The incompetent contractors could be contributed significantly to project abandonment. The causes of project abandonment are wide and vary such as inadequate project planning, inadequate fund, inflation, bankruptcy of contractor, variation of project scope, political factor, incompetent project manager, wrong estimate, inadequate cost control, faulty design, and delayed payment. These issues are generally come from contracted party or the third party. This research aims to find the causes or circumstance that led to contractors’ work abandonment of public construction project. The group of samples is the 154 list of contractors who abandoned the public projects from the circular letter year 2017-2019 of The Comptroller General’s Department, Ministry of Finance. Chi-Square statistical analysis was applied to analysis the significant of the data. The results shown that the circumstance that bring to project abandonment are the contractor who registered as ordinary personal, registered capital in the name of an individual, bidding building projects with worth ≤ 1 million Bahts and located in the western region of Thailand.