תוכן עניינים
The Five Components of Compensation in Construction Defect Cases
Israeli courts recognize five main categories of damages in construction defect lawsuits. Understanding each category helps you build a comprehensive claim and avoid leaving money on the table.
1. Cost of Repair
The primary and most important component. The amount is determined by an independent licensed engineer who prepares a written repair estimate. Courts award the full reasonable cost of repair, including:
- Labour and materials for direct repair of each defect
- Supervision fees for managing the repair work
- VAT (where applicable)
The repair estimate must be specific and itemised — general or vague estimates are given less weight.
2. Reduction in Property Value
Where defects cannot be fully corrected by repair — for example, structural issues, known flooding history, or proximity defects — the residual impact on market value is compensable. A licensed real-estate appraiser (שמאי) must provide a written opinion quantifying this reduction.
3. Alternative Rent (Rental Value During Defect Period)
If the defects made all or part of the property uninhabitable, you may claim compensation for the rental value of substitute accommodation you had to pay, or for the rental value of the portion of your apartment you could not use. The appraiser’s opinion on fair rental value is the key evidence.
4. Emotional Distress
Courts award damages for emotional distress in cases where the defects caused significant mental anguish — for example, prolonged water damage causing mold infestation, or defects discovered shortly before a planned move-in. The award is discretionary and typically modest relative to the repair costs, but it can add several thousand shekels to the total.
5. Legal Costs and Expert Fees
The court may award reasonable legal fees and the cost of the engineering and appraisal opinions obtained for the case. These awards are not automatic — the judge has discretion — but they are routinely granted in construction defect cases where the claimant prevails.
How Lev-Taieb Can Help
Maximising your total compensation requires experienced legal guidance from the outset. The attorneys at Lev-Taieb will identify all applicable heads of damage, instruct the right experts, and present your claim in the most compelling manner. Call us at 072-2428822.
