A new dimension in the home construction industry: The Home Builder Association (HBA) has announced the establishment of a 'Consumer Insurance Fund' (HBA Consumer Insurance Fund) aimed at elevating consumer confidence in home construction businesses to the highest level. This fund serves as a mechanism to provide guarantees and enhance credibility for consumers nationwide, offering protection of 1 million baht within 30 days, with pilot contracts starting from August 1, 2026, to July 31, 2028.

The current economic volatility and the construction industry have led to a crisis of confidence, particularly in cases where 'contractors abandon projects, commit fraud, or breach contracts.' This issue has manifested in various forms, including cases involving home builders and general contractors, as well as instances where consumers have paid for knockdown homes but ended up 'without a house.' The problems are reflected in the statistics of complaints reported to the Office of the Consumer Protection Board (OCPB), with over 3,100 real estate complaints nationwide in 2023.

Mr. Anantakorn Amornwatee, President of the Home Builder Association (HBA), revealed that the association is committed to raising industry standards by shifting its role from 'mediator' to 'guarantor of the highest confidence' through the establishment of the 'Consumer Insurance Fund.' This marks a significant step in promoting awareness and confidence for consumers to access member companies' brands that are ready to serve nationwide, while also enhancing the service standards and quality of member companies.

The establishment of the 'Consumer Insurance Fund' by the Home Builder Association plays a crucial role in protecting consumers by serving to 'safeguard their highest rights' and providing tangible financial security. It also raises the standard of consumer care and builds confidence for those deciding to build homes with member companies of the association.

In-depth Look at the 3 Main Functions of the 'Consumer Insurance Fund'

Mr. Anantakorn stated that the Consumer Insurance Fund is an essential mechanism that helps build consumer confidence in home construction through measures of care and protection according to the association's criteria, aiming for the Home Builder Association to be recognized and accepted by consumers nationwide, in line with this agenda's vision.

1. The 'Consumer Insurance Fund' plays a vital role in assisting consumers affected by home construction issues.

  • High coverage limit: The fund sets a maximum damage coverage limit of up to 1,000,000 baht per legal entity that is a member (or pays according to the actual damage incurred).
  • Covers all cases: It provides care and compensation for damages arising from severe disputes, such as when member companies face financial liquidity issues and cannot complete construction on time, fraud, or abandonment of construction midway.
  • Trustworthiness: The Consumer Insurance Fund allows consumers to clearly filter and differentiate home construction service providers in the market, distinguishing between member companies with guaranteed support.

2. Quick compensation within 30 days in case of disputes between members and consumers.

  • Approval conditions: The association will approve immediate payment when one of the conditions is met, based on a unanimous decision from the joint committee assessing the dispute that clearly identifies the member company’s wrongdoing or when the case is finalized in court.
  • Fast compensation: Payments will be made within 30 days from the date the committee reaches a decision or receives the final judgment document, allowing consumers to proceed with construction immediately.

3. Building confidence for consumers deciding to build homes in 2026.

  • Pilot protection timeline: This project will take effect to protect consumers who sign construction contracts with member companies from August 1, 2026, to July 31, 2028, for a full two-year period, establishing a stable pilot system for both consumer confidence and the home construction business in the long term.
  • Strict and comprehensive member screening: The association has revised its member screening criteria to the strictest standards, focusing on assessing management strength, quality of on-site construction work, and transparent and feasible sales and marketing plans before accepting them as members to mitigate risks effectively.
  • Quality control of current members: The association has mechanisms in place to continuously evaluate and support members to control the quality of work delivery and filter only those operators who have the potential and readiness to deliver the best work to consumers.

Reinforcing credibility – Building acceptance from consumers nationwide.

Mr. Anantakorn stated, "The 'Consumer Insurance Fund' represents a significant step in enhancing consumer confidence in home construction businesses, reducing the risk of losing investment in home construction, and increasing confidence in choosing to use services from member companies. Currently, there are 84 companies ready to serve nationwide, with 45 companies in Bangkok and its vicinity, accounting for 53.5%, and 39 companies in other provinces, accounting for 46.5%. It is expected that the number of members will grow to 100 companies by the end of this year."

"Consumers who choose to build homes with association members can be assured that they will receive services from legitimate corporate entities with high stability, supported by members nationwide, and under the protection of the Consumer Insurance Fund," Mr. Anantakorn said.

If you wish to check the list of member companies that meet OCPB standards or for more details, you can directly check the website https://hba-th.org.