Regulatory Alert: New Rules on Contractor Registration in Thai Public Construction Sector

Introduction

The Ministerial Regulation Prescribing Eligibility Criteria for Business Operator Registration (No. 2) B.E. 2569 (2026) (“New Ministerial Regulation“), published in the Government Gazette on 13 January 2026, introduces key changes to the regulatory scheme under the Public Procurement and Supplies Management Act B.E. 2560 (2017) (“PSMA“) governing the registration of contractors for Thailand’s public procurement projects.

The New Ministerial Regulation:

1. extends the statutory interval for monitoring and verification of registered contractors’ eligibility;

2. introduces formal mechanisms for demotion of registered contractors;

3. refines and expands the grounds for de-registration; and

4. repeals and replaces the previous schedule of fee rates.

Extension of Monitoring Period for Verification of Eligibility

The New Ministerial Regulation formally extends the monitoring and verification period for the eligibility of registered business operators from two years to three years, calculated from the date of registration with the Comptroller General’s Department. As a result, registered contractors may benefit from a longer compliance cycle due to additional time to prepare for eligibility reviews and to ensure ongoing compliance with the applicable registration requirements. 

Demotion of Registered Contractors and Reinstatement to Original Level

Previously, under the Ministerial Regulation Prescribing Eligibility Criteria for Business Operator Registration B.E. 2560 (2017), there was no express mechanism for the demotion of a contractor’s registration level. The New Ministerial Regulation introduces a formal demotion mechanism. A contractor whose registration level is demoted will be restricted to bidding for, and undertaking, public projects that correspond to the demoted level, which may significantly affect its business opportunities in the public sector. In addition, any contractor who has been temporarily suspended from submitting bids or entering into contracts with government agencies for its failure to meet standards (as determined under section 106, paragraph 3 of the PSMA) will be automatically demoted. However, a demoted contractor may apply for reinstatement to its original registration level, provided that it satisfies the criteria prescribed by the Price Evaluation Committee under the PSMA. 

De-registration (Removal from the Register) 

The New Ministerial Regulation expands the grounds for de-registration of contractors. In addition to cases involving fraud or the submission of false documents, a contractor may now be removed from the register where it has been suspended from bidding or contracting with a state agency (as determined under section 106, paragraph 3 of the PSMA) on the grounds that the contractor has performed the work in a manner that fails to meet professional engineering standards in construction work or has committed gross negligence in the performance of duties, resulting in the death of another person.

Periods of Ineligibility and Conditions for Reapplication

The New Ministerial Regulation also revises the framework governing periods of ineligibility and conditions for reapplication following de-registration. Compared with the previous regime, which generally allowed re-registration after two years, the new rules now establish more clearly defined and specific ineligibility periods and reapplication conditions, which can be summarised as follows:

1. Where removal occurs due to lack of general qualifications (e.g. where the contractor fails to meet the requirement to have a majority of Thai directors), the contractor must wait a period of two years from the date of removal before submitting a new application.

2. Where removal occurs due to abandonment of a government project (as notified under section 109 of the PSMA), the contractor may submit a new application upon cessation of the prohibited status arising from such abandonment.

3. Where removal occurs due to failure to meet the minimum qualification criteria (e.g. financial capacity, past performance, project experience, machinery or equipment) without involving misconduct as determined by the Comptroller-Department, the contractor may submit a new application once it has satisfied the applicable minimum qualification criteria.

4. Where removal occurs due to fraud or submission of false documents, the contractor must wait a period of ten years from the date of removal before submitting a new application.

5. Where removal occurs due to its performance failing to meet professional engineering standards, or where it has committed gross negligence in the performance of duties resulting in the death of another person, the contractor must wait a period of two years from the date of removal before submitting a new application.

Schedule of Fee Rates

The previous schedule of fee rates for contractor registration has also been replaced with a new schedule issued under the New Ministerial Regulation. 

Key Takeaways for Contractors

Contractors engaged in public construction projects should carefully review their internal compliance, technical standards, and risk-management procedures to ensure continued eligibility under the revised regulatory framework. Particular attention should be paid to professional engineering standards, documentation accuracy, and ongoing qualification requirements.

If you have any queries or need clarifications on the above, please contact our team.

Contribution Note

This Legal Update is contributed by the listed Partners, with the assistance of Thanapat Yaemklin (Senior Associate, Rajah & Tann (Thailand) Limited) and Prat Naka (Senior Associate, Rajah & Tann (Thailand) Limited).