Contracting gets overhaul

Push to boost state project safety, value

The government is overhauling public procurement law to move away from lowest-bid contracting, aiming to improve project quality, reduce delays and ensure better value for public funds.

Government spokeswoman Rachada Dhnadirek said legal officials are finalising amendments to the Public Procurement and Supplies Administration Act of 2017 to reform how state agencies select contractors and suppliers.

The proposed amendments have been submitted by Deputy Prime Minister Pakorn Nilprapunt, who oversees legal affairs, to Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas and the Comptroller General's Department for consideration before moving through the legislative process, she said.

"The reform is part of the government's commitment to improving public administration and legal frameworks, in line with policy commitments made by the prime minister to parliament," she said.

The revisions are intended to ensure the state receives goods and services that offer genuine value for money rather than relying solely on the lowest price offered in a bidding process.

Under the proposed amendments, state agencies would be required to place greater emphasis on the overall benefits of a project, its intended purpose and a bidder's ability to fulfil contractual obligations.

Other factors to be considered include lifecycle costs, product and service quality standards, after-sales service, government-promoted products and a contractor's past performance.

Ms Rachada described the shift as the core principle of the reform, saying an excessive focus on the lowest bid has often resulted in contracts being awarded to companies that later fail to meet contractual requirements.

"In many cases, contractors have submitted unusually low bids but were unable to deliver the work as agreed, abandoned projects or caused significant delays," she said. "Ultimately, the public bears the cost of those failures."

The draft legislation would also strengthen the government's ability to deal with problematic contractors by expanding the grounds for contract termination and blacklisting. Contractors could be designated as abandoned-work operators if they commit serious errors or deficiencies that cause, or risk causing, damage to government agencies, members of the public, property or the environment.

Another key change would empower the head of a contracting government agency to directly classify a contractor as having abandoned a project before notifying the Finance Ministry's permanent secretary for inclusion in the Comptroller General's Department's central blacklist system.

Ms Rachada said the measure would help reduce delays in enforcement and prevent contractors with poor records from continuing to bid for projects at other agencies while administrative procedures are still under way.

The amendments also seek to curb the misuse of procurement appeals. Appeals are currently lodged in almost every major procurement process, often causing lengthy delays to project implementation. New provisions would introduce safeguards against appeals filed without reasonable grounds, she said.

"The reforms would contribute to more efficient spending of taxpayer money, improve transparency and accountability, reduce the incidence of abandoned projects and help public infrastructure and development projects proceed more quickly," said Ms Rachada.

The proposed legal changes come amid broader efforts to strengthen integrity and transparency in government procurement.

Patricia Mongkhonvanit, director-general of the Comptroller General's Department, last week announced stricter anti-corruption requirements for companies bidding for public procurement projects.