My house in Khon Kaen was supposed to be finished yesterday.  We have a contract with the builder that states the work will be completed on 9 February 2011 or we start deducting 0.1% daily from our final payment.

Khon Kaen House Sunset

Khon Kaen House Sunset

This winds up being 1,230 Thai baht per day or about $41.  The way the contract works is that the builder gets paid a percentage every time a milestone is met.  The final milestone is completion and he has 20% of 1,230,000 baht coming (about 246,000 baht).

So, he meets with my wife yesterday at the Khon Kaen house site and expects to get paid in full and have my wife sign documents attesting to this.  She refused.

There is still painting to be done on the outside and inside of the house, the wall needs to be completed and painted, a gate needs to be installed, the kitchen isn’t complete, and the list goes on.

Today, she met up with his boss and he was totally silent as my wife explained that the Khon Kaen house must be completed by 20 February 2011 or else they don’t get their 20%.  And the daily deduction is still in place.  A new amendment to the contract has been drawn up and my wife will get this signed today.  If they don’t get it done, then we withhold the money and hire someone else to complete everything.

Having an uncle that is a retired Khon Kaen Thailand Policeman accompanying helped the cause.

So, be careful if you are having a house built in Thailand.  Make sure that you have someone on the sight every day checking every last detail.  Otherwise, you will get screwed.  And, if you are a farang (foreigner), it is best to stay away from the sight as the contractor will try to jack up the prices since you are supposedly rich.

That is how business is conducted in Khon Kaen and throughout Thailand.

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