Section Code: 0587 - 0607

Thai Civil and Commercial Code

SPECIFIC CONTRACTS
TITLE VII
HIRE OF WORK

Section 587. Contract Labor

The hire of work is a contract whereby a person, called contractor, agrees to accomplish a definite work for another person, called employer, who agrees to pay him a remuneration of the result of the work.

Section 588. Contractor Responsible for Tools

Tools or instruments which are necessary for the execution of the work are to be supplied by the contractor.

Section 589. Contractor Responsible for Good Quality Materials

If the materials for the work are to be supplied by the contractor, the contractor shall supply material in good quality.

Section 590. Return of Surplus

If the materials are to be supplied by the employer, the contractor shall use them carefully and without waste. He shall return the surplus after work is completed.

Section 591. If Delay caused by Employer’s materials…

If the defect or the delay of the work originates from the nature of the material supplied by the employer, or from instruction given by him, the contractor is not liable, unless the contractor knew of the unfitness of the materials or the impropriety of instructions, and did not give notice of it.

Section 592. Inspection of Work

The contractor is bound to allow the employer or his agents to inspect the work during its execution.

Section 593. Proper Time Period to Begin Work

If the contractor does not begin to work in a proper time or delays in proceeding with it contrary to the terms of the contract, or if, without the fault of the employer, he delays to proceed with it in a such a manner that it can be foreseen that the work will not be finished within the agreed period. The employer is entitled to cancel the contract without waiting for the time agreed upon for delivery.

Section 594. Notice of Defect by Employer

When it is possible to foresee with certainty, whilst the work is proceeding, that by the fault of the contractor, the work will be executed in a defective manner or contrary to the terms of the contract, the employer may notify the contractor to make good the defect or to comply with the terms of the contract within a reasonable time to be fixed in the notice, failing which the employer is entitled to have the work repaired or continued by a third person at the risks and expenses of the contractor.

Section 595. Liability for Materials Supplied by Contractor

If the materials have been supplied by the contractor, his liability for defects is governed by the provisions of this code concerning sale.

Section 596. Late Completion Remedies

If the work is delivered after the time fixed in the contract, or if no time was fixed, after reasonable time has elapsed, the employer is entitled to a reduction of remuneration or when time is of the essence of the contract to rescission.

Section 597. Acceptance of Work without Reservation

If the employer has accepted the work without reservation, the contractor is not liable for the delay in delivery.

Section 598. Acceptance of Defective Work

If the employer has accepted a defective work either expressly or impliedly, the contractor is not liable unless the defect was such as could not be discovered when the work was accepted, or it had been concealed by the contractor.

Section 599. Right to Withhold Remuneration

In case of delay in delivery or of delivery of a defective work, the employer is entitled to withhold the remuneration unless the contractor gives proper security.

Section 600. Statute of Limitations

Unless otherwise provided in the contract, the contractor is only liable for defect appearing within one year after delivery of the work, or within five years if the work is for a structure on land other than a wooden building.

This limitation shall not apply if the contractor has concealed the defect.

Section 601. 1 Year for Defect

No action against the contractor can be entered later than one year after the defect appeared.

Section 602. Payment of Remuneration

The remuneration is payable on taking delivery of the work. If the work is to be accepted in parts and the remuneration has been specified for the several parts, the remuneration for each part is payable at the time of its acceptance.

Section 603. Destruction or Damage Prior to Delivery

If the materials have been supplied by the contractor, and the work is destroyed or damaged before due delivery, the contractor bears the loss provided that such loss is not caused by any act of the employer.

In such case no remuneration is payable.

Section 604. Damage or Destruction if Materials supplied by Employer.

If the materials have been supplied by the employer and the work is destroyed or damaged before due delivery, the employer bears the loss provided that such loss is caused by any act of the contractor.

In such case, no remuneration is payable unless the loss is caused by any act of the employer.

Section 605. Termination of Contract Prior to Completion

As long as the work is not finished, the employer can terminate the contract on making compensation to the contractor for any injury resulting from the termination of the contract.

Section 606. If Contractor Dies or is not able to complete the project

If the personal qualification of the contractor is of the essence of the contract and the contractor dies, or without his fault becomes incapable to carry on the work the contract comes to an end.

If any part of the work already done is useful to the employer, he is bound to accept it and pay a reasonable remuneration.

Section 607. Sub-Contractors

The contractor may appoint sub-contractor to work for him in all or in part, except in the major part of contract that required the ability of the contractor. The contractor is still responsible for the work and any mistake of the sub-contractor.