Phuket underpass contractor seeks waiver as late penalties top B7mn
Phuket officials said late-completion penalties on a delayed underpass systems project have exceeded B7 million, with no waiver approved as the contractor seeks relief.
Penalties on a delayed Phuket highway underpass systems project have risen to more than B7 million, and no waiver has been approved, the Phuket Highways Office has confirmed.
Phuket Highways Office Chief Winai Kuemueang said the contractor, Better World Traffic Co Ltd, had submitted a request under Comptroller General’s Department Circular No 240, which allows contractors to seek a waiver or reduction of penalties in some cases. He said the request remains under review.
“There has been no conclusion yet,” Mr Winai told The Phuket News. He said the contractor had claimed that delays were caused by the impact of conflict in the Middle East on the transportation of construction materials, but the supporting documents were still incomplete.
“We cannot make a decision based on verbal explanations alone. Clear documentary evidence is required,” he said.
Mr Winai also rejected claims on social media that authorities had already agreed to waive the penalties. He said no approval had been given and that the contractor was only exercising its right to submit a request under the circular.
“I have not signed any document approving a waiver or reduction of penalties. Penalties continue to be calculated in accordance with the contract,” he said.
Mr Winai said the contractor continues to incur liquidated damages of more than B100,000 per day while the project remains unfinished. He said the contractor would have a chance to submit supporting documents and that a committee would review the evidence again later this week before making any decision.
The contractor has indicated that all remaining work is expected to be completed by the end of this month.
The B48.412 million project is funded through the Southern Andaman Provinces Group’s 2025 budget. It covers the installation and upgrading of smart lighting, electrical systems, CCTV cameras, speed cameras and remote traffic management systems at Phuket’s major highway underpasses.
The contract was signed on Sept. 27, 2025, with a 210-day construction period ending on April 24 this year. According to Mr Winai, work has already been completed at the Airport and Bang Khu underpasses, while crews continue installing systems at the Samkong, Darasamut and Chalong underpasses.
Overnight closures remain in effect at the affected underpasses from 8:30pm to 6am through July 15 to allow the remaining work to continue.
The project has faced delays for months. In March, provincial officials ordered an investigation after concerns were raised that little or no work had begun for several months after the contract was signed. The findings of that investigation have not been released publicly.
At the latest review meeting, chaired by Vice Governor Suwit Phansengiam, officials were instructed to keep pushing for the project’s completion while ensuring that any decision on the contractor’s request for penalty relief complies with government procurement regulations.
