"Israeli law protects apartment buyers and the banks, but provides inadequate protection for small contractors."
Dozens of building contractors working on Heftsiba Building Development & Investments Ltd. projects are at risk of collapse because of debts amounting to hundreds of thousands of shekels.
Dozens of contractors have contacted the Renovation Contractor Union for help in dealing with Heftsiba’s collapse. The Union has set up a special task force to help struggling contractors and subcontractors.
Renovation Contractor Union chairman Eran Siv says that Israeli law protects apartment buyers and the banks, but provides inadequate protection for small businessmen and professionals who are building subcontractors for large companies. He said that some subcontractors are exposed to hundreds of thousands of shekels in debts owed by Heftsiba and its contractors, and are liable to go bankrupt as a result.
Siv said that the Renovation Contractor Union would issue guidelines to its members in a few weeks, outlining proper working rules vis-a-vis large developers and other contractors. The guidelines will include rules for writing contracts and for obtaining appropriate guarantees.
Published by Globes [online], Israel business news - www.globes.co.il - on August 14, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007