Preparation of contracts

We foreigners in Thailand are usually acting more as employers of different kinds of workers than employees. We have an economic interest in conducting that side of the work and in addition, we do not know the local resources so well as people who have been living here all their lives.  

Because of this, it is much wiser to hire somebody to do the work than try to do it by yourself.

Tourists make work orders when they for example ask a tailor to make them suits or a painter to make a piece of art as a souvenir for family members. These kinds of work orders are quite small and there is not too much risk involved, even when paying in advance.   

Some of us have carried out larger projects, and they may be, for example, various construction works, or vehicle related projects.

When you have a lot of money involved, it is wise to minimize the risks.
Unpleasant situations come when Average Joe hears from his Thai girlfriend's cousin's husbands's brother, that this is Khon Khaen's best construction worker and he promises to Average Joe to build a house at much lower costs than usual at the moment.

The Average Joe meets this superior construction worker and convinced by his girlfriend, gives him 100 000 Baht in cash to get construction work started.

Three months later Average Joe keeps asking for construction workers who came and started the job but haven't come ever since. Average Joe will be told that his leg broke in the water festival time, and that he has promised to come "later" to continue building, and then when he has enough money to buy the bus ticket from Khon Kaen back to Pattaya.

At this point Average Joe is starting to lose his faith in Thais and also to get anything done or, at least, to get his money back. After all it is possible that he hears from his girlfriend that this construction worker has said that this is actually what has been agreed on: you give him 100 000 baht and he gets the work started (but not finished).  

Generally, however, everything goes well. It is obvious that there are faithful workers in Thailand too and they are not breaking their legs or running out of money in the middle of construction work, but still it is always wise to fix everything on paper.

In Thailand, what has been agreed on paper with witnesses is valid as an evidence.

It is basically the same even if the matter should be agreed on a cigarette box and in Japanese. If this cigarette box clearly shows WHAT is agreed, if both have signed it and if there are two witnesses who have been there when signing and it shows their personal information, then it is a pretty clear agreement.

Bookstores may sell many kinds of contract templates in Thai-language, but the problem is to find a reliable translator who explains what exactly the paper says.

Similarly, you can give Thai workers an agreement which is written in Finnish, in English or any language, and they do not necessarily understand what it says. This does not mean anything because if they sign the document, they are responsible for their part of what the paper says. No one will be so stupid to sign something they do not understand.

Well what if there will be an argument ?
If there will be any disagreement concerning the contract you have made, you need to have the original Thai version of the agreement or a translation of the original language version of the agreement. This is because in Thailand the court will only accept documents written in the official language of the country.  

Crucial is that each party in the agreement has signed the contract in the presence of witnesses and that it is said at the bottom of the contract that they have understood the contract.