Claim against a renovation contractor for construction defects or financial damages

To avoid filing a lawsuit against a renovation contractor, make sure to draw up a written contract.

A lawsuit against a renovation contractor can be filed on various grounds, but the real goal of every property owner is to have the renovation (or new construction) completed in the shortest possible time, with the fewest number of problems. No property owner really wants file a claim Against a contractor, especially not when the renovation contractor has not yet completed his work.

However, sometimes there is no escape and a lawsuit must be filed against a renovation contractor because he did not complete his work, or worse, caused significant damage. Our office has been able to assist many clients in their lawsuits against renovation contractors, and if necessary, we can assist you as well.

In order to minimize the chance that the contractor will be sloppy in his work (and it will be discovered Construction defects) or will not complete it on time, it is highly recommended to draw up a written contract with the renovation contractor that will specify exactly what the contractor's obligations are (for example, what actions/repairs/renovations/installations he will perform), draw up a bill of quantities that will specify the minimum of each material or item that the renovation contractor will use (for example, how much cement, how many and what tiles, etc.), and clearly and in detail specify the schedule for each stage of the work.

על מנת "לעודד" את הקבלן לעמוד בהתחייבויותיו דאגו לכלול בחוזה סעיף פיצוי מוסכם בגין איחור בסיום העבודה. סעיפים מסוג זה נפוצים מאוד בפרוייקטים של תמ"א 38, ושם הקבלן מתחייב לשלם סכום כסף לכל דייר בגין כל יום איחור במסירה. אין שום מניעה שסעיף מסוג זה יופיע בכל הסכם אחר בעת התקשרות עם קבלן שיפוצים.

Another way to get the renovation contractor to meet deadlines is to divide the payments according to the stages of completion of the work or the progress of the renovation. That is, divide the renovation or building addition that you want to build into stages and pay the contractor only at the completion of each stage. Since the contractor will want to receive the money as soon as possible, he will try to meet the deadlines. In any case, do not pay the contractor before a professional of your choice (for example, a structural engineer) examines the quality of the contractor's work at each stage, in order to avoid construction defects.

Whenever you start a very large construction or renovation project, make sure to demand (and actually receive) from the contractor guarantees and financial securities for the completion of the work. It is not uncommon in our country for a contractor to go bankrupt and leave the job before it is completed. In order to avoid a situation where you are faced with a broken trough, a situation where both Filing a claim Against a contractor will not necessarily help you, make sure to get the appropriate guarantees.

Attorney Eddie Blitstein has been representing plaintiffs and defendants in lawsuits against contractors and renovation contractors for over a decade. Need professional legal advice? Contact our office. For your information Example of a lawsuit against a contractor.

An accompanying engineer for the renovation or construction project

If you intend to carry out a complex and large renovation or construction project (for example, renovating the entire building as part of a תמ"א 38 (or privately) It is recommended to stipulate in the contract with the contractor that the renovation will be supervised by a professional. To your taste.

Since most people are not professionals in the field of construction or renovation, and do not have the ability to examine the quality of the renovation contractor's work, they must hire the services of a professional to ensure that there are no construction defects (which could later lead to a lawsuit being filed against the renovation contractor).

The Housing Culture Association assists tenants who pay annual membership fees and allows them to hire the services of a building engineer at a reduced fee. There is also the possibility that the association will take a more active role in the relationship between the renovation contractor and the tenants and will ensure that the renovation contractor signs a contract. Usually, the Housing Culture Association agreements contain a clause stating that it will not be possible to file a claim against the contractor in court, but instead the parties will conduct an arbitration procedure before an arbitrator who will be appointed by a senior official in the Housing Culture Association.

The arbitration process has advantages and disadvantages compared to filing a lawsuit in court, but in most cases the arbitration process may be shorter and cheaper to administer (in terms of associated costs such as attorney fees, court fees, etc.).

Cases in which a claim can be filed against a renovation contractor

Lawsuit against a renovation contractor for failure to begin work

This is a great example of why you should not pay a renovation contractor the full amount they request upfront. There are cases where the renovation contractor accepts the payment and simply disappears and does not answer the phone.

Cases like this highlight the importance of dividing the work into stages and paying for it at the end of each stage. This will significantly reduce the risk of encountering these types of cases.

Claim against a renovation contractor for delay in completing the work

A delay can be negligible, while a delay can be several months or more. A delay in completing work may cause the property owner significant financial damage. For example: If it is a property where the walls or roof have not been renovated or built, the property owner may not be able to live in the property at all and will have to rent an apartment elsewhere.

In cases like this, there is no reason not to file a lawsuit against a renovation contractor and demand payment of the excess rent you were forced to pay, as well as additional compensation for any other financial damage you suffered and emotional distress.

As long as you have taken care to include a clause in the contract for agreed compensation for delay, you can demand the agreed compensation in a lawsuit against the contractor. In such cases, it is recommended to wait until the contractor actually completes his work so that you can present to the court the exact number of days the contractor was late.

Lawsuit against a renovation contractor for neglect of work

This is a situation where the renovation contractor has started to perform the work but for one reason or another does not finish it and leaves the premises (sometimes abandoning some of the work equipment). In these cases, the property owner or building occupants will be forced to hire the services of another renovation contractor who may charge them a higher rate, and in any case, the time period for completing the work may be significantly delayed.

It is important to understand why the renovation contractor abandoned the work. If the renovation contractor went bankrupt, and you did not take the trouble to demand appropriate guarantees from him before starting the work, it is very possible that filing a financial claim against him will not be able to help you.

Claim against a renovation contractor for defects Construction or low-level renovation

These are situations in which the renovation contractor performed careless work, used materials that did not meet the required standard, used professionals who were not skilled in performing the work for which his services were hired, and more.

The construction defect may be minor or aesthetic and will not always require filing a claim against a renovation contractor (the contractor may agree to make a small repair), but in other cases the construction defect may be substantial, such as a leak from the roof after rain. This example indicates that you will not always be able to discover the construction defect in real time, but as long as you filed the claim within 7 years From the date of discovery of the construction defect, the claim will not be time-barred (one should also take into account the issue of delay before filing the claim, and therefore it is recommended to file a claim against a renovation contractor as soon as possible after discovering the construction defect).

Lawsuit against a renovation contractor for breach of contract

A claim against a renovation contractor can be filed in any case where the contract between the parties is breached. The more material the issue, the more fundamental and significant the breach may be. For example: If it was agreed with the renovation contractor that he would use a certain material of very good quality but in reality he used a material of poor quality, this may constitute Breach of contract Between the parties.

In cases where the contract between the parties is violated, it is recommended to consult with Contract Law Lawyer In order to examine the nature of the violation and detail to you what remedy is relevant to you (contract cancellation, financial compensation, a combination of both remedies together, or other remedies).

Try to resolve the dispute with the renovation contractor before filing a claim.

As much as you encountered In a civil conflict With the contractor, try to resolve it first without resorting to legal proceedings. Resorting to legal proceedings will inevitably lead to long (no less than many months) and expensive (fees) litigation. Lawyer for filing a lawsuit against a renovation contractor may be significant).

To try to resolve the conflict, start with Sending a warning before taking legal action. חשוב מאוד שהכל יתבצע בכתב (מכתב בדואר רשום, דוא"ל, פקס) ולא רק בעל פה, לצורך התיעוד שייתכן ותאלצו להגיש לבית המשפט במסגרת The statement of claim.

If you encounter refusal or disregard on the part of the renovation contractor, you may have no choice but to file a civil lawsuit against the contractor and demand financial compensation, the return of the money paid to the contractor, and, Compensation for mental anguish.

Frequently Asked Questions Regarding a Claim Against a Renovation Contractor