What is the classification of contractors and how can one be promoted?

The higher the classification level of a contractor, the higher the maximum scope in money or square meters of the project that that contractor may carry out, so that at the maximum level in the construction industry a contractor can build with an unlimited financial scope. How do you get the classification and who is responsible for it? Attorney Tomer Sofer Explains

In collaboration with legal zap

24/07/2022

Sunday, July 24, 2022, 1:50 p.m

• Share on Facebook

• Share on WhatsApp

• Share on Twitter

• Share by email

• Share in general

Classification of contractors refers to three parameters which are represented by letters, numbers and branch code numbers, (Photo: ShutterStock)

The contractor register brings together all the contractors authorized to work in Israel in a legal and regulated manner.

As part of the regulations for the registration of contractors for construction engineering works (classification of registered contractors), 1988, the legislator divides the contractors registered in the register of contractors into five different classification levels, with each classification level representing the maximum financial scope (and square meters when it comes to the residential construction industry) of the project that the same contractor is allowed to carry out in the branch in which he is registered.

Classification of contractors refers to three parameters which are represented by letters, numbers and branch code numbers, explains attorney Tomer Sofer, an expert in the field of contractor registration who advises thousands of clients in the field.

"The numbers that appear on the license represent the financial scopes that can be performed by that contractor registered in the contractors' register. When the contractor is registered in the contractors' register for the first time, the contractor starts with the number 1 (for example, a license in the construction industry is 100c/1 and a license in the renovations industry is 131a/1) and if he has proved a year later who has carried out at least one project to the extent of 70% of what is allowed by law, will be promoted to number 2 and so on.

"That is, a construction contractor who holds a 100 C1 license for at least 12 months and carries out a project with a financial scope of 70% of what is allowed to him by law (about NIS 4.7 million for each project), may submit a request to raise its classification to classification 100c2.

As mentioned, the higher the number, the higher the maximum scope in money or square meters (in the residential construction sector) of the project that the same contractor may carry out, so that a contractor with a license in the construction sector 100 c/5 can build with a financial scope that is not limited.

"The letters refer to the type of industry in which the contractor is engaged, divided into three groups - Group A, Group B and Group C. The letter symbolizes the maximum permitted scope of the project. For example, the maximum scope in the branches of Group C is higher than the maximum scope of the branches of Group B (For example, a 100 C1 license is about NIS 4.7 million and a 130 B1 license is about 2.9 million NIS.)

"The industry code symbolizes the name of the industry in which the contractor is engaged, with each of the industries receiving a three-digit numerical code.

For example, an infrastructure and development road contractor is called a 200 contractor, a sanitation facility contractor (plumbing and firefighting systems) is called a 190 contractor, and so on."

Does the classification reflect the contractor's professionalism?

"Not necessarily - a low classification of a contractor will not always indicate that it is a contractor without experience, since it is possible that it is a contractor with rich experience in a field of specialization up to the amounts allowed in the license. However, it is important to note that in many cases the high classification is a marketing tool for the contractor, as it indicates Seniority and rich experience in his field in a wide variety of jobs with very high financial volumes."

"According to section 3 of the Contractors Registration Regulations (classification of registered contractors), after 12 months from the date of the contractor's initial classification, he may contact the Contractors Registrar and request to raise his classification and prove that he has completed work to the extent required by law - 70% of what is allowed to him according to the terms of the license in which he is holder".

Attorney Sofer emphasizes that the registrar is entitled to reject the request to raise the contractor's classification, even when he has met the requirements.

In any case, the Registrar of Contractors forwards any request for a classification upgrade to an external committee that advises the Registrar of Contractors and makes a decision regarding the upgrade of the classification in accordance with its discretion."

Attorney Sofer explains that "the applicant must attach many documents, including a technical specification or bill of quantities, a report from an accountant, a confirmation from the client of the work confirming its completion, attesting to the scope and quality in which it was carried out, a contract reflecting the essence of the work carried out and the scope and other documents"

. To prevent technical errors that will lead to the rejection of the application and to speed up the procedure.

077-8037056

to attorney Tomer Sofer on the Legal website of the

article courtesy of Zap Legal

• Sentence

• additional subjects

Tags

• contractor