A contractor was seven months late in delivering an apartment to the purchasers and refused to compensate them for the delay, contending that the delay was due, inter alia, to circumstances beyond its control such as: the Covid19 epidemic and delays on the part of the municipality.
The Court accepted the claim and held that the contractor is to pay compensation for the delay. Under Israeli law, a contractor selling an apartment is to pay statutory compensation for a delay in handing over possession of the apartment. Pursuant to the law, a contractor may be exempt from paying compensation for a delay in the delivery of the apartment if the delay was due to circumstances beyond its control and if the risk of such occurrence and consequences is not imposed on it. Here, there was no connection between the lockdown and the Covid19 epidemic and the need to postpone the delivery of possession of the apartment. Also, a delay in construction as a result of the municipality's conduct is an expected risk imposed on the contractor. Therefore, the contractor is to compensate the purchasers for the delay.