Israel’s construction sector is expanding rapidly, fueled by urban renewal, transport megaprojects and housing initiatives, but with scale comes complexity, and complexity breeds disputes. The past year has brought notable developments: courts have reaffirmed the independence of arbitration clauses, limited judicial interference in ongoing arbitrations, and the new International Commercial Arbitration Law has aligned Israel with the UNCITRAL Model Law. For contractors and employers navigating FIDIC-based contracts, time bars, variations and liability caps remain central battlegrounds in construction litigation.
