Thai PM Cancels ITD Contracts After Crane Crashes, Commuters Brace for Delays

Thailand woke up to the rare sight of a caretaker prime minister publicly tearing up billion-baht construction deals—an act that echoes far beyond the two cranes that killed commuters this week. From Korat’s rice fields to the traffic-choked Rama 2, every megaproject awarded to Italian-Thai Development (ITD) is now under a cloud, and the message is unmistakable: lethal accidents will no longer be dismissed as the price of progress.

Twin tragedies that snapped official patience

The first alarm sounded when a 400-ton launcher girder crashed onto a Bangkok–Nakhon Ratchasima passenger train on Wednesday, killing dozens and ripping apart two carriages. Barely 20 hours later, another towering crane toppled on the M82 elevated motorway site in Samut Sakhon, crushing private cars in the early-morning rush. For Thais who travel those corridors daily, the back-to-back disasters exposed a grim pattern of repeated safety lapses, not a freak coincidence. Eyewitness videos showing workers scrambling and commuters fleeing went viral in minutes, fanning calls for swift punishment.

From flagship builder to potential pariah

Just 3 years ago ITD flaunted headline contracts for the Thai–Chinese high-speed rail, the Rama 2 corridor overhaul, and a string of provincial airports. Today, the same company faces a government-ordered blacklist, immediate contract cancellations, and possible exclusion from any state tender for up to 10 years under Section 109 of the Procurement Act. Officials note that ITD logged 287 on-site accidents in 2026 alone, despite boasting of international safety awards. Investors responded by dumping the stock; analysts warn the firm’s cash flow could stall if performance bonds are seized to cover damages.

What ordinary commuters will feel first

Long-distance passengers connecting Bangkok with Isan should brace for service delays on the northeastern line, while motorists who rely on Rama 2 may endure heavier traffic as the dismantling of the mangled steel takes at least a week. Transport insiders estimate rerouting and temporary bus bridges will add 30–45 minutes to peak-hour journeys. A small relief: ITD’s third-party liability policy has been confirmed, allowing the State Railway of Thailand to pursue 1 million baht compensation per fatality without dipping into taxpayer funds.

The legal choreography behind the ban

Moving from political vow to enforceable ban is not automatic. Under the 2017 Procurement Act, the ministry must prove ITD is a “project abandoner” or has caused serious state damage. That triggers a five-step process: investigation, ministry recommendation, Comptroller-General review, Finance Ministry order, and finally an e-GP system notification that bars every agency from signing fresh deals. Experts say the paperwork can finish in under 60 days because fatal safety breaches are explicitly listed grounds for blacklisting.

Key implications once the order is finalised:

• Automatic suspension of all current ITD bids still under evaluation

• Forfeiture of retention money and bank guarantees up to the contract ceiling

• Mandatory risk audits on joint-venture partners sharing the worksite

• A possible credit-rating downgrade if future public revenue evaporates

A safety record under renewed scrutiny

Industry veterans recall that ITD’s name surfaced in at least five fatal events on Rama 2 since 2025 and a deadly scaffold collapse at One Bangkok in 2023. The firm showcased gold-standard safety certificates in annual reports, yet inspection logs revealed gaps in equipment calibration, night-shift supervision, and temporary traffic management. Civil engineers from the Engineering Institute of Thailand will now lead an independent probe, promising conclusions within 15 days. Their findings could redefine acceptable safety margins for every elevated rail or road project nationwide.

Who finishes the jobs—and at what cost?

The high-speed rail section near Lam Takhong reservoir was 99 % complete before the accident. Replacing ITD mid-stream means a new contractor must review design files, import custom parts, and negotiate supplier warranties, likely pushing the opening date beyond 2028. In Samut Sakhon, the Highways Department is considering splitting the remaining work into smaller lots that Thai mid-tier builders such as Nawarat Patanakarn or Sino-Thai can absorb quickly. That strategy could hold costs steady but adds coordination risk. One senior planner admits the government may have to dip into its contingency fund if tenders come in higher.

A wider signal to the construction sector

Anutin’s hard line resonates with voters tired of project delays and headline crashes, yet it also sends a business signal: safety lapses now carry commercial penalties, not just moral rebuke. Insurers are recalculating premiums, banks are reviewing exposure to contractors with thin accident-mitigation records, and site managers across the country have been ordered to install extra sensors, CCTV, and geofence alarms in the next 30 days. Whether that culture shift sticks after the media glare fades will determine how soon Thailand can reclaim its ambition of becoming Southeast Asia’s infrastructure hub.