As we mentioned, projects with a high scope of work are usually left to the reinsurers, who are not familiar with the Israeli construction industry, the relevant Standards, and the required safety procedures. Therefore, reports intended in advance for the reinsurers will be written in an expanded format that also contains information that is self-evident for the local underwriter.

In the end, beyond managing the risks in the project in the light of the contract works policy, we present in the reports signed information about the Project, the work environment, and the Insured, it includes:


◊ Relevant information about those involved in the project, i.e. the main contractor, the insured, and the management and supervision company

◊ A description of the site environment and the works being carried out, divided into defined phases, detailing the foundation and construction methods, budget distribution and timetable distribution, etc.

◊ Analysis of the main risks: third-party risks including shaking and weakening of a support, natural risks, fire risks, break-in risks


Below is a list of generic questions, plans, and documents that we send to the Insured, so that we have an idea about the Project.


Required documents for preparation:


  1. Blueprints (preference for PDF or DWF format)
  2. Project simulations
  3. List of Planners
  4. Zero Report (an Appraiser’s Report for banking purposes)
  5. Ground Consultant Report
  6. Building Permit
  7. Gantt schedule chart
  8. If work has already been carried out on the Site, a Consultant’s Approval (Structural Engineer or Ground Consultant) must be provided to the effect that the works carried out so far on the Site were carried out according to the Plans and under the highest supervision.


If there is no Gantt yet, fill in the following fields:


Milestone Start Duration End Works Value in NIS (estimate, rounded)
Reinforcement, Excavation, Anchors
Basement floors’ skeleton construction
Building skeleton construction
Finishing works
Development, Form 4, Misc.


Additional information to complete:


  1. Name of the Project Entrepreneur
  2. Who is the Main Contractor in the Project?
  3. Contractor classification of the Main Contractor, Company number, and Contractor number
  4. Previous experience of the Main Contractor in similar projects
  5. When does it start?
  6. Is there a Building Permit? If not, when should it be expected?
  7. Is there an Excavation Permit?
  8. Is the plan undergoing any urban planning changes?
  9. Average and maximum excavation depth
  10. Are piles placed around the perimeter of the excavation? Horizontal anchors?
  11. Is there groundwater in the depths of the excavation?
  12. The foundation method
  13. Conventional construction method/Baranovich/other
  14. Number of cranes
  15. Will there be temporary freight elevators? How many?
  16. What is the division of the value of the works between the skeleton and finish works? (general estimate in percentages)
  17. Is the Project part of a government program such as Target Price or others? What percentage?
  18. Construction of all the buildings at the same time and occupancy at the same time? Is it possible that they will be built or inhabited in stages?
  19. Is a WINT leak monitoring system installed on the Site during the construction phase?
  20. Does the company have an internal procedure for hot works? If so, please transfer, and if it exists, English as well
  21. Is a Risk Management Plan prepared for the Project by an external Safety Consultant or on behalf of the company? If so, please forward it, and if available, English as well
  22. Are you preparing a Fire Safety Plan for the construction phases (possibly as part of the Risk Management Plan) If so, please forward it, and if available, English as well
  23. The value of the works


In addition to the above, the reports must refer to the risk mitigation measures accepted by the reinsurers:


Water damage risk management


Will a leak detection system such as the WINT system or an equivalent be installed on the Site? This is a system that detects leaks in water pipes with the help of abnormal flow detection and artificial intelligence, and alerts officials in real time.


Will the temporary water supply to the buildings, for the use of the construction works, be from water pipes that the Insured will temporarily install in the infrastructure shafts and/or in the balconies for the entire height of the building (uniform balconies, on the same façade), so that in the event of a failure in the piping, immediate drainage of the water will be possible through the permanent drainage pipes in the infrastructure shafts and/or on the balconies?


In the winter, during the rainy season, don’t store building materials and water-sensitive equipment in an open warehouse under the sky. In addition, it is the responsibility of the Project Manager on behalf of the contractor to follow up on official meteorological forecasts, and to take measures to mitigate the risk such as covering open shafts, ensuring and checking the power supply to the drainage pumps that will be on Site, etc.


Does the construction site have pumps available for use in case of flooding? The issue arises more in projects that have four basement floors and more, possibly even three floors, but it depends on the area of ​​the excavation and the ground conditions.


Fire risk Management


Hot Works Procedures – Is there an orderly procedure for hot works? If the document was presented to us, it will be included in the Photo Appendix. For sensitive works that include welding and the use of open fire, a daily Work Permit is obtained, after the subcontractor and/or employees of the Insured undergo a safety briefing by the Site’s Safety Department, and after a preliminary tour of the work area has been carried out to examine the risks and take steps such as removal or covering of sensitive materials, placing fire extinguishers on the Site, etc.


Fire and Smoke Detectors – Will the Insured install independent fire and smoke detectors in external service buildings, such as warehouse buildings and temporary offices in the organizing area of the Site? In the buildings under construction, at an advanced stage of the finishing works, fire and smoke detector systems will be installed in relevant electrical panels and in other places according to the requirements of the Fire Department. The systems will be active after receiving a Certificate of Occupancy, and will be tested before activation by certified service companies, and in accordance with the relevant Standards.


Emergency Procedures for Fire Breakout – Will the Insured have megaphone devices on the Site for announcing in case of emergency, in several places on the Site, for the use of the Site’s Emergency Team, which is also equipped with flashlights? They will also conduct briefings on how to proceed in the event of a fire for officials and guards, and will maintain as much as possible free entry routes for the use of the Fire Department as will be defined in the Site’s Organization Plan. The Site’s Emergency Team will consist of managers and officials who know the Site well, and during a fire incident can direct the Fire Department to the relevant areas. The regulations in Israel require practicing emergency fire procedures once a year, including evacuating the Site to an assembly point, and documenting the conclusions of the exercises.


Fire Watcher – When the Site is closed, will the Main Contractor appoint an employee whose job it is to tour the Site, and identify fire or water leakage points, or whether, as part of the contract between the Security Company of the Site and the Insured, the job description of the security guard will be to patrol the Site, and to identify fire or water leaks.


Electricity Supply – Electricity will be supplied to the Site through a temporary electricity connection by the Israel Electric Corporation, under the IEC’s responsibility. According to the Standards’ requirements, temporary electrical panels will be installed at the Site, according to Standard SI 61439-4 (Standard for temporary electrical panels at construction sites). The electrical system will also be tested and approved by a certified electrician before activation.


Site Safety


Project Supervision by Building Control Institute – Building Control Institutes are entities (public or private) that have been accredited by the Israel Laboratory Accreditation Authority and have been licensed by Israel’s Ministry of Interior to perform processes of planning and execution audits in the construction field. These processes include examination of plans, visits to the construction site, as well as sample and process audit of numerous areas related to safety, structural stability, and public well-being. Is the Project under discussion accompanied by a Control Institute? Beginning from the licensing process and up to execution control, in several engineering planning areas set forth in the Planning and Construction Regulations (Building Control Institute Establishment and Operating Methods), 5778-2018, such as plumbing and drainage, building skeleton stability, building ventilation, protected areas, protection from hazardous materials, ensuring sanitary conditions, fire safety, and more.


The Safety Stars Program – Do the Insured participate in the Safety Stars Program and undergo training and testing by mentors on behalf of the Program’s operator? The Safety Stars Program of the Israel Builders Association (Boney Ha’aretz) is a framework for a deep cultural change in the construction and infrastructure industries in Israel, which leads the companies in the Program to high efficiency in particular, and excellence in general, while focusing on a holistic program to dramatically improve safety at work. The Program is operated by the Tzomet company, all of whose instructors and mentors are air crew members and have gained decades of experience in cultural change in the aviation and medical industries, and bring together the construction industry and the largest and leading companies in it, with an imbued belief in the ability to carry out a cultural change and high professionalism in the transfer of content and training in the field. The Program awards certificates to companies that will voluntarily build and operate advanced safety management systems and implement a safety culture at the company’s sites.


Briefing for employees – Is there a daily briefing and safety training held for the employees every morning, before the work starts and employees enter the Site, by a Foreman? An employee who does not attend the briefing is not allowed to enter the Site until the personal briefing has occurred.


Employee tracking and monitoring – Will a “carousel” gate be installed at the entrance to the Site through which the employees must enter and exit, with digital tracking of every employee who enters the Site through a fingerprint reader, including distribution to subcontractors, employee identity tracking, etc? This way, during an emergency, you can know the situation of the employees on the Site and identify if there are any employees missing.


Safety management – Will the Site use an on-Site safety management system (such as the Beti system)? It is a digital platform in cloud services, which is used to monitor personnel qualification, equipment qualification, follow-up on the routine of safety tours, management of defects and safety incidents, work diary management, follow-up of employee and manager training registers, etc. The system automatically identifies and blocks any worker whose qualification certificate is not valid (such as Works at Heights).


Is a Foreman allowed to leave the Site only after a Shift Transfer Procedure to a replacement Foreman has been carried out?


Will the Insured prepare Occupational Health and Safety Management Plan for the Project, which will be written by the Safety Officer on behalf of the Insured, according to the Labor Inspection Organization Regulations (Safety Management Plan), 2013? The Plan includes a division into priorities for reducing safety and health risks at the company’s sites, methods of enforcement and supervision, a diagram of the safety system and the organizational structure of the safety system on the Site, a list of officials and the division of responsibilities for each official, contact details of regional emergency officials, a risk survey according to the implementation phase of the schedules of the Project, trainings for employees, periodic inspections, and more.


Will the contractors and their workers undergo safety training before receiving permission to work on the Site? Such training includes, among other things; clear instructions regarding Hot Works Procedures, works at heights, personal protective equipment, and other safety procedures. Is the level of safety on the Site expected to be very high, the requirements from the contractors are high, and all activity on the Site to be controlled by inspectors on behalf of the Entrepreneur and the Main Contractor who make sure that the contractors comply with all safety guidelines?

A classic condition in a contract works policy is to place a security guard on the site, is this the only choice? No!

But…there are conditions that must be met in order for the insurance company to agree to deviate from the policy. See a creative example from a site that is divided into several sub-areas, where the permanent guard was actually replaced by three parallel security circles:


A mechanical breakdown insurance policy is designed to insure electro-mechanical equipment in case of unexpected accidental damage, and is also used as a basis for a loss of profits policy as a result of a mechanical breakdown event. On the one hand, they insure typical systems such as pumps, compressors, air-conditioning systems and refrigeration systems, generators and transformers, and elevators and escalators; and on the other hand, industrial systems such as printing presses, production lines in factories, processing machines (CNC), turbines and water desalination facilities, etc.


In the contract works insurance policy there is an exception for work stoppage, usually for a period exceeding 90 days. It is important to understand that the coverage is not stopped, but its scope may be affected.