Contractor liability

Under the Sale (Apartments) Law, the contractor is liable for defects in the various parts of the building: the piping and plumbing, the waterproofing, the structural frame, the exterior cladding and more, and each of them has its own period.

A home inspection (bedek bayit) for the building is meant to make sure the contractor bears the consequences of everything within his responsibility. On this page we have set out the inspection and warranty periods and the difference between them.

Liability for plumbing work

"What do we do about the hot water? There isn't enough hot water for everyone's showers, let's call in a good plumbing company..." That was the wording of a desperate message in the WhatsApp group of a two-year-old building in Yavne.

A pity. Had the residents known that the contractor is liable, with binding liability, for the water piping for four years from the day of handover, followed by another three years of warranty in which proof is required, they would have turned to him.

Many residents of shared buildings do not know how long the contractor is liable for each part of the building, and they miss out on their right to repairs. The term "first-year inspection" (shnat bedek) confuses many people, who mistakenly think the first year from handover is the only time they can demand repairs from the contractor.

In fact the law has no concept called "shnat bedek". The law recognizes only two periods: the "inspection period" (tkufat bedek) and the "warranty period". More about this on the page the first-year inspection.

The warranty periods for construction defects, and the contractor's other obligations toward apartment buyers, are set out in the Sale (Apartments) Law, 5733-1973, and in the 2011 amendment to the law.

What is the difference between the inspection period and the warranty period?

The inspection period is different for each type of defect. For example, the inspection period for defects in the aluminum and plastic components of the building is two years. Exterior cladding, by contrast, is supposed to be more durable, and if it comes loose or crumbles it can endanger the residents, so its inspection period is seven years.

After each inspection period comes a fixed warranty period of three years for the same defect. In this period the contractor's liability is weaker than in the inspection period: when the residents raise a defect, they are the ones who have to prove that the defect was not caused by their use of the building.

So "shnat bedek" is only a psychological concept, which contractors use to limit the residents to one year in which to report defects. It is important to know that the count of time from the day of handover stops as soon as the residents give notice of the defect. In other words, even if the contractor puts off the repair or delays it, his liability is not reduced by the time that passes.

Inspection periods by type of defect

These are the inspection periods for the various construction defects. Note that these are the updated periods, which apply to buildings whose apartments were purchased from 6.4.2011 onward:

1. A defect in metalwork and carpentry products, including aluminum and plastic: two years.
2. A defect in interior flooring and cladding, including sinking and wear: two years.
3. A failure in the functioning and durability of machinery and boilers: three years.
4. A defect in the yard development, including sinking, among others of paving tiles on the ground floor, in parking spaces, on sidewalks and on paths within the building's grounds, as well as defects in surfaces of various finishing materials: three years. "Yard development" includes paths, surfaces, walls, fences, built components and systems, among them water, sewage, drainage, electricity, lighting and communication systems.
5. A failure in the functioning and durability of the components of thermal insulation systems: three years.
6. A failure in piping systems, including water, the heating system and gutters, gray water and sewage: four years. "Failure" also includes leaks.
7. A failure in the waterproofing of the structure, including underground spaces, walls, ceilings and roofs, among them lightweight roofs with roofing: four years.
8. Cracks wider than 1.5 mm in non-load-bearing components: five years.
9. Exterior cladding coming loose, peeling or crumbling: seven years.
10. Any other non-conformity that is not a fundamental non-conformity: one year.

In this schedule:

• A "failure" is a complete or partial failure in the functioning of the product or system.
• A "defect" is a defect in the functioning and durability of the product or system, including a failure to maintain stability, integrity, quality and appearance, both of each component separately and of the whole.

You will find a detailed explanation of each period on the page the periods in which the contractor is liable.

The warranty period

In the period after the inspection period, the contractor is liable for faults caused by faulty design, by materials that are not of good enough quality or by workmanship that is not of good enough quality. The burden of proof lies with the apartment buyer: he has to show that this is indeed the cause of the defect, and this can be done with a home inspection expert opinion.

After the warranty period has also ended, the contractor is required to deal only with defects that concern the stability or safety of the building, problems in the structural frame or the foundations, or a defect that could not have been discovered in the first years after the purchase.

How do you get the defects repaired?

It is important to send the contractor a proper notice of the defect and ask him to repair it, as early as possible, preferably already in the first year after the apartment is handed over. It is best to do this in detail, on the basis of identifying the defects and a home inspection report.

If the contractor does not take the responsibility the law places on him, you can turn to the Registrar of Contractors, file a complaint and, if necessary, file a lawsuit. Do not give up, and do not pay for expenses that are not your responsibility: the contractor must hand over a new apartment that meets the standard, as the Sale (Apartments) Law requires. You can read about one of the common defects in new apartments on the page flooring defects.