This was revealed today (Wednesday) by a senior official from the Ministry of Construction and Housing during a construction innovation conference in Tel Aviv. According to her, it is a pilot project, and the ministry is currently developing the model to determine the winning bidder. President of the Contractors Association: “In the not-too-distant future, we will see construction through automation and programming.”
By Nimrod Buso, Nadlan Center
The Ministry of Housing is expected to publish a unique tender at the beginning of 2025, in which bidders will compete based on their level of innovation in construction and the implementation of advanced construction technologies. This was revealed this morning (Wednesday) by Michal Aran, Senior Division Manager for Strategy at the Ministry of Construction and Housing, during the “SHIFT” conference promoting technology and innovation in the construction industry, held at the Tel Aviv Port.
According to Aran, this is an initial pilot, and the ministry is currently working on the model under which the tender will be published. “At the moment, it’s a pilot, and we’ll see how we move forward after it,” she said. The Real Estate Center has learned that two approaches are currently under consideration. The first is a land tender for developers, in which bidders will be required to implement a high level of innovation in construction. The second is an execution tender for the Ministry of Housing for public buildings or infrastructure, in which bidders will also be obligated to use innovative construction methods.
In her remarks, Aran highlighted the severe labor shortage in the industry as a significant opportunity to implement innovative technologies that would allow contractors to reduce the number of workers needed. She also referred to findings from the Bank of Israel regarding the industry’s low productivity, which stemmed from low capital investments relative to the number of workers.
Yigal Slovik, CEO of the Contractors Association, said: “You, the developers, have received a leap forward. If you fully realize the potential by providing the tools the market genuinely needs, you will find a gold mine in the construction and infrastructure sector.”
David Yehulomi, CEO of the Fund for Encouraging and Developing the Construction Industry, said at the conference: “Technology must be integrated into the industry at lightning speed, and the entire system—state and private sector—must work together to prepare the ground with suitable and skilled labor to adopt and operate these technologies.” He noted that the issue is currently on the table, and the fund will work to promote it.
Among the other speakers was the Director General of the Ministry of Construction and Housing, Yehuda Morgenstern, who told the conference attendees, “What you are developing today will impact the country for generations to come.”
