Given the crisis in the industry, the Ministry of Housing calls on foreign construction companies to build in Israel

The Ministry of Construction and Housing called for foreign construction companies with proven experience to submit an application to be included in the database of foreign contractors allowed to build in Israel. The companies that meet the conditions can operate in Israel for up to 8 years. Today, 10 foreign companies are already operating in Israel, employing about ten thousand foreign workers

By Assaf Kravitz, Nadlan Center

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Yesterday, the Ministry of Construction and Housing called foreign construction companies with proven experience in the residential construction industry to submit an application to be included in the database of foreign contractors allowed to build residential buildings in Israel. A foreign company in the pool will be allowed to build new homes in Israel and manage residential construction projects as the party responsible for all project engineering and performance aspects.

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In the document, the Ministry of Construction and Housing states that a similar move was made in 2016, and as a result, 10 foreign companies that employ around ten thousand foreign workers are currently operating in Israel. Now, in light of the high demand for apartments and the industry crisis, it is necessary to make the move again following the war. A company included in the pool will be allowed to operate in the field of residential construction in Israel for five years, which can be extended by no more than three years, i.e., up to 8 years. 

This call, which was also published in English, establishes the procedure for selecting the foreign companies that will be included in the database, including the threshold conditions, the criteria that the bidders must meet and the winning conditions, the conditions under which the companies will be allowed to carry out residential construction work in Israel and the supervision and control model of their work. The ministry intends to select up to 10 foreign companies to be included in the database.

The threshold conditions that the Ministry of Housing requires from interested companies include, among other things, an average annual revenue turnover of at least 100 million dollars from activity in the construction industry and the execution of at least 10 construction projects completed in the last six years. In addition, the documents and affidavits that must be attached to the application are listed.

The contents of this article are designed to provide the reader with general information and not to serve as legal or other professional advice for a particular transaction. Readers are advised to obtain advice from qualified professionals prior to entering into any transaction.

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