Danya Cebus Sues Subcontractor Al-Rader for $6 Million Over Defective Work

Danya Cebus Group is suing its subcontractor, Al-Rader Systems and Construction, for NIS 22.2 million (approximately $6 million) in Tel Aviv District Court. Danya Cebus alleges that Al-Rader demanded and received millions of shekels beyond what was agreed upon, performed work negligently, and required Danya Cebus to hire other professionals for repairs.

Danya Cebus claims Al-Rader was hired for air conditioning, sheet metal work, and other tasks on various projects, including at Sheba Hospital and the "Ad 120" retirement home chain. The lawsuit states that Al-Rader "demanded and actually received sums of money significantly exceeding, by many millions, the parties' agreements and the scope of work actually performed."

According to Danya Cebus, an internal review revealed payment irregularities, including overpayments for work or products not actually delivered. The company also discovered that Al-Rader had billed and been paid for workers who allegedly reported to work but did not, or were double-counted across different sites. Danya Cebus further asserts that Al-Rader's supposed skilled workers were unqualified and performed substandard work, causing significant damage that necessitated hiring alternative contractors to mitigate losses.

Danya Cebus stated that the damages were substantial, and the NIS 22.2 million claim is for court fee purposes. The company claims it paid NIS 13 million to Al-Rader's own subcontractors, NIS 2 million for undelivered materials, and NIS 30 million for unapproved labor costs. Al-Rader has not yet filed a defense.