Wednesday, August 5, 2026

Mae Fah Luang University insists it terminated the joint-venture contract with "China Railway No. 10" itself, and has already claimed penalties and filed suit

Chiang Rai – A legal officer of Mae Fah Luang University has given a detailed clarification, insisting that the university was not abandoned by the contractor building its medical-staff dormitory. Rather, Mae Fah Luang University (MFU) itself ordered the termination of the contract with the joint venture — which included "China Railway Number 10," one of the firms involved in the collapsed Office of the Auditor General (OAG) building — after construction was found to be behind schedule. Penalty claims have been filed and the matter has already reached the courts.

Following the CSI LA page raising questions about the responsibility of China Railway Number 10 (Thailand) Co., Ltd. — one of the contractors involved in the collapsed OAG building — over whether it had abandoned the construction of the medical-staff dormitory building at Mae Fah Luang University and who would be held accountable, a legal officer of Mae Fah Luang University (MFU) came forward today (30 July) to disclose the following.

MFU wishes to clarify the progress of the "Construction Project for the Medical Personnel Dormitory Building, Mae Fah Luang University Medical Center Hospital, Mae Fah Luang University (MFU)" and to provide the public with a correct understanding of the matter.

The university procured a construction contractor in accordance with the Government Procurement and Supplies Management Act 2017, through a public invitation by electronic bidding (e-bidding). The TPC Joint Venture — comprising Thai Paragon Construction Co., Ltd. and China Railway Number 10 (Thailand) Co., Ltd. — was selected as the construction contractor for the said building, with a completion deadline set for June 2024.

Throughout the contract period, the university supervised the construction to ensure compliance with the design specifications, engaged a construction supervision consultant, and appointed a materials inspection committee that continuously monitored and pressed the contractor to perform. However, because construction fell behind schedule and could not be completed within the stipulated deadline, the university terminated the contract on 13 February 2026 and simultaneously claimed penalties in accordance with the contract conditions, in order to protect the interests of the state and the public.

The related case is currently under consideration by the Chiang Rai Provincial Court. The university will pursue the full course of the justice process until the case reaches a final judgment.

The university therefore confirms that it has complied with government procurement law and contractual conditions at every stage — from contractor selection and construction supervision through to contract enforcement when delays arose — and will provide further updates as developments occur.

Regarding this project, MFU used a construction budget of approximately 468 million baht. Procurement took place in 2021. Subsequently, an earthquake occurred, the OAG building collapsed, and investigations revealed that one of the private firms involved in constructing that project was the same company involved in MFU's project.

Assoc. Prof. Dr. Machhima Naradit, the university president, and the executive team therefore conducted an inspection and announced that all buildings were designed to withstand earthquake risk; that all materials had been tested and found to comply with the specified design standards; that material standards had been set — with steel, in particular, required to meet Thai Industrial Standards (TIS); and that structural integrity checks had been carried out, and so on — until the delays arose and it became necessary to terminate the said contract.