Starting a construction project, whether small or large, involves the crucial step of selecting and contracting with designers (architects and engineers) and a contractor. Understanding the relevant laws at this stage will help you, as the project owner, protect your interests, reduce risks from potential problems, and ensure the project proceeds smoothly and as agreed upon.

‍

5.1 What to Know About the Architect and Engineer Profession Acts

Thailand has laws that regulate the architectural and engineering professions to protect the public and control professional standards.

5.1.1 Architect Profession Act, B.E. 2542

• Controlled by: The Architect Council
• Role: Defines the scope of controlled architectural practices, the qualifications of professionals (must be licensed), a code of ethics, and penalties.
• Importance: The architect designing a building must have a Controlled Architecture Professional License (Associate Architect, Ordinary Architect, Senior Architect level) and must sign to certify the plans. If an architect does not have a license or signs off on work for which they are not licensed, it is illegal.

5.1.2 Engineer Profession Act, B.E. 2542

• Controlled by: The Council of Engineers
• Role: Defines the scope of controlled engineering practices (especially civil engineering), the qualifications of professionals (must be licensed), a code of ethics, and penalties.
• Importance: The engineer designing the structure or other important systems (e.g., electrical, sanitary) must have a Controlled Engineering Professional License and must sign to certify the plans and structural calculations.

Important thing to check: Before hiring, you should request to see the professional licenses of all architects and engineers involved in the project to be confident in their capabilities and legal standing.

5.2 What Should Be Specified in a Designer Employment Contract

The designer employment contract should be detailed and thorough to prevent misunderstandings and problems later:

• Scope of Work: Specify what the design work covers (e.g., architectural work, structural work, systems, interior design, permit coordination).
• Work Timeline: Set a timeframe for each design stage (e.g., concept presentation, preliminary drawings, permit application drawings, construction drawings).
• Service Fees: Specify the total design fee, payment method (installments), and conditions for adjustments (increases/decreases).
• Deliverables: Specify the type of plans (digital/paper), number of sets, and supporting design documents.
• Other Expenses (if any): Such as travel costs, official fees that the designer must pay in advance.
• Design Revision Conditions: Specify the number of times the design can be revised without additional charges and the service rate if that number is exceeded.
• Copyright of the Design: Generally, the design created by the architect remains the copyright of the designer, but the project owner has the right to use it for construction.
• Contract Termination: Conditions for termination by either party and compensation in case of termination.

5.3 What Should Be Specified in a Contractor Employment Contract

The contractor employment contract (construction contract) is the most important document in the construction process. It should have clear details covering all issues:

• Scope of Work: Detail all construction work, referencing the approved construction drawings and specifications.
• Construction Budget: Specify the total lump sum amount or the method for calculating construction costs (if not a lump sum).
• Work Installments and Payments: Define the payment schedule for each installment (e.g., piling, structure erection, roofing, finishing), linking it to the completion of work in each phase.
• Construction Period: Clearly define the project's start and end dates.
• Penalty Clause: Specify the daily fine rate if the contractor's work is delayed beyond the deadline.
• Retention/Warranty: The practice of withholding a portion of the payment (e.g., 5-10% of the contract value) to guarantee the quality of work for 6 months to 1 year after handover, to be used for repairs in case of defects.
• Insurance: Specify which party is responsible for construction insurance and third-party liability insurance.
• Change Order: Specify the procedure and agreement method in case of additions or reductions from the original plan (may require a contract addendum).
• Materials and Equipment: Specify the type, quality, and brand of the main materials to be used, or specify which materials the project owner will procure.
• Contract Termination: Conditions for termination by either party and compensation/damages.
• Disputes: Define the method for resolving disputes (e.g., negotiation, mediation, litigation).

5.4 Labor Law Regulations That Project Owners Should Know

Although the contractor is the direct employer of the workers, the project owner should have a basic knowledge of labor law to avoid problems and potential impacts:

• Workplace Safety: The project owner shares responsibility for ensuring the construction site has adequate safety measures installed according to the law.
• Social Security and Welfare: The contractor is responsible for providing social security and welfare for their employees. If the contractor fails to do so, it could affect the project owner in some cases (especially if it can be proven that the owner had direct control over the workers).
• Bodily Harm or Property Damage: If a worker causes damage to third-party property or persons, the project owner may also be held jointly liable.

5.5 Scenario Example: "Khun Wichai" and the Lesson from Building a Warehouse to Building a Dream Home

• Khun Wichai: A successful SME owner who is expanding his business and planning to build a new home for his family.
• Project 1: A small storage warehouse (The Expensive Lesson).
• Project 2: A 2-story residence (The Path to Success).

The Expensive Lesson: Building the Warehouse

Khun Wichai wanted to build a storage warehouse quickly and on a tight budget, so he chose what he thought was the "cheapest and easiest" way.

• Hiring the Designer: Khun Wichai found a "freelance draftsman" online who offered a price almost half that of a typical architectural firm. He hired him immediately without checking for a professional license and with only a simple, one-page employment contract.
• Hiring the Contractor: He chose a "familiar contractor" recommended by a friend. They agreed on a price verbally and had a very simple contract that only stated the total amount and a rough timeline, without detailing work installments, penalties, or a warranty.

The Problems That Arose:

1. Permit Application Rejected: When the plans were submitted to the municipality, the official informed him they were unusable because the designer lacked a controlled architecture professional license. Khun Wichai had to waste time and money finding a licensed professional to certify a new set of plans.
2. Budget Overruns: During construction, the contractor kept asking for more money for items "not specified in the contract," which was too vague to be used as a reference.
3. Delays with No Recourse: The project fell behind schedule by over 3 months, but since the contract did not include a penalty clause for delays, Khun Wichai had no leverage.
4. Substandard Quality: Not long after completion, the warehouse roof began to leak. But the contract had no warranty clause, making it a nightmare to get the contractor to return for repairs.

• Result: The warehouse was completed, but it was late, over budget, and full of nagging problems. Khun Wichai had learned an expensive lesson.

The Path to Success: Building the Family Home

From his prior experience, when it came time to build his family's home—a critically important project—Khun Wichai was meticulous and followed all the correct steps.

• Hiring the Designer: Khun Wichai hired a reputable architectural firm. Before signing, he requested to see the professional licenses (Kor.Sor. and Kor.Wor.) of both the architect and the structural engineer until he was confident. He signed a detailed designer employment contract that specified the scope of work, fees, and the number of revisions.
• Hiring the Contractor: The architect helped Khun Wichai vet and select a professional contractor and drafted a robust contractor employment contract with all the important details:
  
  • A scope of work that referenced the construction drawings and Bill of Quantities (BOQ).
  • A payment schedule based on work installments that corresponded to actual progress.
  • A clear project completion date with a penalty clause for delays.
  • A 5% retention fee for a 1-year warranty.
  • Specified brands and models of materials to be used in the contract.
• Result: The house construction went smoothly. When a minor issue arose on-site, it was resolved according to the procedure specified in the contract. The project was completed on time and within budget. Eight months later, when a minor water leak was found in a bathroom, Khun Wichai simply notified the contractor, who sent a team to fix it immediately at no cost, as it was still within the warranty period.

Conclusion from the Scenario: Khun Wichai understood that verifying the qualifications of designers and having a robust contract is not a hassle or a waste of time, but an "investment in peace of mind." It is the most important tool for protecting the project owner's rights to ensure the construction is completed with quality and without disputes.

5.6 Conclusion

Having robust designer and contractor employment contracts that adhere to legal principles is the most important investment in protecting your interests as a project owner. Verifying the qualifications of professionals and specifying the scope of work, timeline, costs, and various conditions in detail will help reduce the risk of delays, budget overruns, substandard quality, or disputes that may arise, ensuring your construction project is completed smoothly and efficiently.

References

• Architect Profession Act, B.E. 2542 (พระราชบัญญัติวิชาชีพสถาปัตยกรรม พ.ศ. 2542)
• Engineer Profession Act, B.E. 2542 (พระราชบัญญัติวิชาชีพวิศวกรรม พ.ศ. 2542)
• The Civil and Commercial Code (regarding Hire of Work) (ประมวลกฎหมายแพ่งและพาณิชย์)
• The Labour Protection Act (พระราชบัญญัติคุ้มครองแรงงาน)
• The Occupational Safety, Health and Environment Act (พระราชบัญญัติความปลอดภัย อาชีวอนามัย และสภาพแวดล้อมในการทำงาน)