New extension for contractor ‘rational’

The secretariat of the House of Representatives is insisting that the 382-day extension granted to Sino-Thai Engineering and Construction Plc (Stecon) for the completion of the new parliament complex was rational. This is the fourth time that the contractor has been given an extension. The new deadline is Dec 31, 2020.

Sorasak Pienvej, secretary-general of the House, said yesterday that he signed the agreement with Stecon’s management last week. The complex was to have been completed this coming Sunday.

He said the extension had not been agreed upon solely at the contractor’s request, adding he would elaborate today.

Mr Sorasak also said he was aware that Democrat Party member Watchara Phetthong has asked House Speaker Chuan Leekpai to investigate the extension, but insisted that the reason behind it was rational.

Meanwhile, Mr Watchara said yesterday that a delay in the selection of contractors for the information and communication systems, public utilities and exterior were cited as reasons for the extension. However, he pointed out that the budget bureau under the House secretariat had warned that extending the deadline any further would break the construction contract and had called on the legal affairs bureau for an opinion on the matter.

Yet, Mr Sorasak rushed to sign the deadline extension for Stecon, Mr Watchara pointed out.

The 12-billion-baht construction contract was signed on April 30, 2013 and was to be completed within 900 days. Stecon has sought three extensions prior to the latest one. Mr Watchara said the first extension was for 387 days, second for 421 days and the third for 674 days.

According to the contract, if the contractor fails to complete the construction within the original 900-day deadline, it will have to come up with a fine of 12.28 million baht a day, Mr Watchara said. Hence, he added, with a delay of 1,482 days so far, the company is liable to pay a total fine of 18 billion baht.