Construction is the latest in a string of major infrastructure projects to fall apart over the past few months.
In late July, the Israeli construction industry was rocked by the collapse of the Kerem Shalom harbor freight hub in Gaza.
In the ensuing weeks, a series of construction mishaps and accidents, including the deaths of several workers, have put the world’s biggest port into a state of suspended animation.
Israel has been busy in recent weeks as it has tried to deal with a backlog of construction permits, a shortage of cement needed for the construction of the world-leading Ben Gurion Airport, and the construction in areas that are already under construction.
Israel, which has had to cut hundreds of thousands of jobs since the 2014 Gaza war, has been working to ease the backlog by offering more incentives for new construction projects, including a reduction in construction-related taxes.
However, the latest setbacks in the construction industry have led to calls for a thorough overhaul of the process of awarding contracts, which could mean a massive overhaul of Israel’s legal framework for building, according to experts.
“The whole issue is a complete mess,” said Dov Lior, an attorney with the Jerusalem-based law firm Herzliya, who specializes in contract law and contracts.
“The government has to take the lead in this and address this.”
In an interview with The Jerusalem News, Lior said that the Israeli government’s approach to the problem of construction contracts has been “horrific.”
The Israeli government has consistently offered incentives to new construction, and has also offered to reimburse any company that loses money in the process.
In June, Israel awarded an incentive of $2.7 billion to three companies for building a new sewage treatment plant, but this incentive was not paid out.
The government also has a $1.5 billion incentive package for building new factories and factories with a “green” name.
This incentive was paid out last month, but the incentive has not yet been paid out, according.
The Israeli government also offers to provide “incentive certificates” for new businesses, which are intended to make companies feel better about their projects and to help them sell their products abroad.
“What’s going on with the incentives is not just a problem of money, but it’s also about the fact that there is a gap between what the government is offering and what the actual cost of doing business is,” Lior told The Jerusalem Report.
According to the Israel Institute for Strategic Studies, the government has spent more than $60 billion on the construction and operation of the country’s infrastructure over the last three years.
In addition, it has been awarded $1 billion to build the new airport in Beersheba, the second largest port in Israel, and is currently building a highway over the Gaza border to the northern West Bank city of Jericho, which is under construction by the Palestinian Authority.
The Israeli construction companies that are struggling to make ends meet in the face of the crisis are in desperate need of assistance, especially when it comes to wages.
“I know that many of them have been forced to close down because they can’t make ends meets,” said Tzahi Bar-On, a consultant and construction industry analyst.
“They are very close to being completely out of business.”
Construction companies that were struggling to meet their payroll obligations have been able to find alternative work and have also been able find work elsewhere, such as the private sector, where they have been given temporary contracts to work in areas with a low population density.
However, this does not guarantee the success of these companies in building the new factories, and they have also had to hire new workers to fill their vacancies.
In addition, some of the new companies have also faced a growing number of complaints against them over unpaid wages and working conditions, such a complaint filed by an Israeli construction company with the Labor Ministry in May.
This complaint has also prompted the Labor Department to launch an investigation into the complaints against the companies, and to initiate the process for compensating them.
The International Labour Organization, which advocates for the rights of workers, has called on the Israeli authorities to address the problems caused by the construction sector.
“There is a lack of confidence in the government’s ability to take on this responsibility,” said ILSO Deputy Director General Olivier De Schutter.
“We call on the government to put an end to the crisis and give all the relevant authorities the opportunity to take urgent steps to ensure the safe operation of its construction projects.”