The Home Builder Association (HBA) is concerned about the issue of 'contractor abandonment' as rising costs shrink profits. They warn consumers not to be misled by 'unrealistically low prices,' which are a dangerous sign that could lead to losing money and not receiving a home. The association recommends 6 ways to prevent contractor abandonment, urging consumers to verify before hiring, enhance construction standards, and raise consumer awareness to reinforce confidence in 'safe home building' nationwide.

Delving into the Crisis of 'Unrealistically Low Prices'

The increasing visibility of contractor abandonment reflects ongoing pressure from rising construction costs amidst fierce price competition. Many operators are facing shrinking profits, leading some to be unable to continue their business as selling prices do not reflect true costs. When liquidity runs low and no new projects come in, it directly impacts consumers who do not receive the homes advertised, creating a cycle of damage that is hard to remedy, especially for those planning to build homes affected by marketing strategies that set 'unrealistically low prices' to attract customers.

“When selling prices do not reflect actual costs, the problem of contractor abandonment becomes more apparent. Many operators face shrinking profits, and some cannot continue their business. As liquidity runs low and no new projects come in, it directly affects consumers who do not receive the homes as advertised, resulting in widespread damage,” said Mr. Anantakorn Amornvatee, President of HBA.

6 Essential Guidelines to Reduce the Risk of Abandonment

To prevent homes from becoming ruins, the association suggests 6 ways to select professional contractors that meet standards and are regulated by law:

1. Beware of 'Unrealistically Low Prices' - Prices significantly lower than the market average are the first dangerous sign. Quality work has standard costs, including management and comprehensive service costs. Professional home building companies will have a more comprehensive care system, from design to complex engineering work. These appropriate costs are crucial for smooth and stable construction.

2. Verify the Status of 'Legal Entities' - Hiring a verifiable legal entity with a clear company location and registered capital ensures accountability throughout the contract duration, from construction to delivery, unlike individuals or Facebook pages that can easily evade responsibility.

3. Contracts Must Meet 'Consumer Protection Standards' - Standard contracts should specify detailed work and responsibilities according to the regulations of the Office of the Consumer Protection Board (OCPB), including clear timelines starting from the date of obtaining a valid construction permit, and detailed material specifications such as brand, model, and grade to prevent disputes and reduce work specifications, along with penalties for delays and legal structure guarantees.

4. Payment Schedule Must Align with Actual Work Progress - Professional home building companies should not request unusually high advance payments. Each payment should correspond to management costs and actual completed work to ensure that the money paid translates into tangible work, preventing risks from overpayment.

5. 'Quality of the Team' and 'Actual Work' Reflect Trustworthiness - Do not rely solely on photos in online media; consider the professionalism of the team. Consumers should choose contractors with experienced architects and engineers overseeing the work closely, which differs from general contractors who may lack engineering standards. Additionally, request to see actual work sites to confirm the quality of work.

6. Adhere to 'Professional Standards' - Choose contractors affiliated with organizations or professional associations that regulate members under rules and laws. This ensures mechanisms for verifying member qualifications, ethical standards in professional practice, and a central agency to mediate disputes, providing assurance that projects will proceed to completion.

Reinforcing Confidence in 'Safe Home Building' - Mr. Anantakorn stated that a home is a lifelong dream. Do not decide solely based on low prices or advertisements. Choosing a home building company with a professional team, transparent contracts, and regulated oversight is the best guarantee to turn dreams into a stable home.

“To stop the cycle of damage from contractor abandonment, the association emphasizes the importance of disseminating knowledge about standards and expertise in home building from member companies nationwide. If consumers choose to build homes with association member companies, these companies provide comprehensive services and deliver work according to fair, verifiable contracts, which helps reduce consumer impacts, such as budget loss, unfinished homes, poor quality work, or disputes that take a long time to resolve,” Mr. Anantakorn concluded.