By Amit Acco, Partner |
Israeli or foreign construction company that is working in Israel, must apply for registration in the Contractor’s Register, where the value of the contract exceeds the sum of NIS 47,255 (if the works are categorized as the Secondary branch or NIS 90,471 per project if the works are categorized as the Primary branch.
In general, works are classified into two branches: a Primary branch and a Secondary branch. As such, where the license is required for the Primary branch in the construction industry (100 c/1) or a license in the infrastructure industry (200 c/1), the contractor is required to have the background of an engineering or work manager with seniority and experience as required by law in that industry is requested. However, where the license required for Secondary such as a license in the renovation industry (131 a/1) or in plumbing (190 a/1), the contractor will only be required to prove several years of experience in the field requested by him.
Kan-Tor & Acco can provide service in analyzing the exact type of registration needed, which can optimize the time frame of the registration and required data and information from the contractor.
Following the submission of the application to the Contractors Registrar, the application will be initially reviewed. Following the review, it may be the case that additional documents will be required and verified and that the contractor complies with the specific regulations.
Upon successful completion of the initial review, the application is forwarded to a professional committee at the Contractors Registrar, which may either approve or deny the application or alternatively may invite the contractor to perform examinations or physical demonstration and examination of the company/person skills and experience – before making a decision regarding the application.
Following the registration, the contractor will be subject to constant supervision and control by the authorities, which will require him to continue to adhere to the required professional standards. In addition, every registered contractor must pay the bi-annual license fee.
Registration in the Contractors’ Register has many advantages: the registration provides the contractor the option of participating in private, public, and government tenders. It is also a validation of the contractor’s knowledge and experience.
Requirement for two Qualified Israeli Engineers
According to the Regulations for Registration of Contractors for Construction Engineering Works (Classification of Registered Contractors), 1988-1988, the company will need to have, among other qualifications, education and experience relevant to his application. For example, for having an engineer education.
When a company still not operates in Israel, it will need to hire two an Israeli engineer for contractor registration.
According to the law, in order to obtain a construction license 100 C 1*, the company/individual must be an engineer, engineer or qualified foreman.
It is not enough to be one of the three, but a lot of experience in these positions is also required. The engineer should have two years of experience out of the last five years, a practical engineer should have four years of experience out of the last eight and a foreman should have six years out of the last 12.
In case the company hires two Israeli engineers to do the work and allow the registration, all requirements of the law will apply to them: They must have an appropriate education and they must have the required years of experience, as we detailed above, with an emphasis on past employment by registered contractors themselves. They are also required to present their work history and sometimes they will also be invited to the committee for the purpose of examining their abilities.
The company must show that hiring an engineer for the purpose of contractor registration is not done casually and that the company indeed employ them on a salary throughout the entire period in which you will be considered a registered contractor. Moreover, the company must be their sole employer and they cannot be employed by 2 contractors at the same time.
As emphasized, the engineers to be hired will also go through the same process that the company will have to go through.
* What is Construction Registration 100 C 1?
A registered contractor 100 c1 is a license in the construction industry which is a primary industry and in fact this license also includes all the secondary industries such as the renovation industry, yard development, skeleton construction and the like.
A contractor who has a 100 C1 license can perform construction engineering work up to an amount of approximately NIS 4.3 million per project.
Over the years, if the contractor meets the conditions of the contractor registry, then that contractor can gradually increase his classification until he reaches the 100 C5 license, which means that the contractor can perform construction engineering works with unlimited financial scopes.
KTA can provide service for the preparation and submission of Contractor Registration. The legal application is submitted in accordance with the Law on Licensing Contractors for Construction Engineering Works and requires compliance with various criteria.