Unexpected expenses on a construction site
Aug 24, 2018
By: Asher Asban – Teken Projects Ltd.
Introduction by Itzik Simon
Contractors and developers purchase contractors’ all-risk insurance in order to cope with unusual (seemingly) events that may occur at the construction site (including property damage, bodily injury, and the like). At the same time, in many sites the project is accompanied by quite a few “hidden” or “unexpected” expenses.
These range from National Insurance payments for workers employed at the site, through sanctions and fines under various circumstances, and up to subrogation claims by the National Insurance Institute in the event of a workplace accident (which are not covered by standard contractors’ insurance, but only by policies purchased wisely and with forward thinking).
Of course, these are only a few examples that hint at a much broader picture. Read an important article on the subject by Asher Asban.
By: Asher Asban - 'Takan Projects' Co.
Introduction by Itzick Simon
Contractors and developers purchase construction insurance to deal with (allegedly) unusual events that may occur on a construction site (including property damage, personal injury, etc.). At the same time, on many sites the project is accompanied by quite a few "hidden" or "unexpected" expenses.
Starting from National Insurance payments to employees employed on site, through sanctions and fines in various circumstances, and ending with claims for compensation from the National Insurance Institute for work-related accident inspections (which are not covered by any insurance for contractors , but only by policies purchased wisely and with forethought). Of course, these are just a few examples that hold the record. Read an important article on the subject by Asher Asban.
Hidden expenses
Hello everyone,
Beyond all the usual "troubles" that are the lot of every developer/construction operator, there are a number of other "hidden expenses" that you should take into account. Below is a breakdown of them, with my comments (which are of course my personal opinion only and not legal advice):
In order to avoid a problem like this, the construction operator must strictly follow the instructions of Form 648. of the National Insurance. Simple, practical and trouble-free.
Regarding enforcement fines, we at 'Takan Projects' work to protect and safeguard the rights of our clients - below:
We filed appeals and claimed that the fine was issued without authority, not according to what was required by the order, not in accordance with the laws of evidence and due to professional errors by the report submitters. None of the appeals we filed were given consideration by the Ministry of Labor and they chose to simply stop the process. We will wait patiently and remind you that each fine will be approximately NIS 22,000 to 35,000, for a single offense.
Remember, according to the Service Contractors Law (Employment of Workers by Manpower Contractors Law, 1996), a construction operation must employ manpower contractors and subcontractors who have a permit from the Ministry of Labor. If a worker from a contractor who does not have a permit is employed at your site, you are liable to a fine of 28,800 NIS. Here too, the fine can be completely avoided through simple and professional office management.
He repeatedly mentions the issue of compensation for work-related accidents (both from the National Insurance Institute and other insurers). An issue that can be avoided (and/or properly prepared for) through efficient and professional office management.
I would like to mention that my office provides (beyond all safety issues and accident investigation), a very unique service, which is legal and professional treatment of criminal issues that arise during a work accident.
Hello everyone,
Beyond all the usual “headaches” that are part and parcel of any construction developer/operator, there are several additional “hidden costs” you need to take into account. Below is a breakdown of these, along with my personal notes (which are, of course, my personal opinion and not legal advice):
To avoid issues like this, the construction operator must strictly adhere to the provisions of Form 648 of the National Insurance Institute. It’s simple, easy, and prevents headaches.
Regarding enforcement fines, at Teken Projects we actively protect and safeguard our clients’ rights. Here’s how:We have submitted appeals, arguing that the fines were issued without authority, not in accordance with the requirements of the order, contrary to the rules of evidence, and due to professional errors by the report submitters. None of the appeals we filed received a response from the Ministry of Labor—they simply chose to halt the process. We will wait patiently, keeping in mind that each fine ranges from approximately ₪22,000 to ₪35,000 per single violation.
Remember, under the Service Contractors Law (Employment of Workers by Manpower Contractors Law, 1996), a construction operator is required to hire manpower and crane contractors who are approved by the Ministry of Labor. If you employ a worker on your site from a contractor who lacks this approval, you may face a fine of ₪28,800. Again, such fines can be entirely avoided through simple and professional office management.
I also want to reiterate the issue of duplication in work accident claims (both from the National Insurance Institute and from other insurers). This is an issue that can be avoided—or properly prepared for—through efficient and professional office management.
Finally, I would like to emphasize that, beyond all safety and accident investigation matters, my office also provides a unique service: professional and legal handling of criminal matters that may arise during a work accident.
מסמכים
