Alumicon Sues Real Estate Firm for $16 Million Over Luxury Tower Project
Alumicon, part of the Aluminum Construction group, is suing Migdalei Barashit Real Estate, its owner Yaakov Kozenoff, and project management firm Efrati-Madpis for NIS 60.4 million (approximately $16 million). The lawsuit, filed in the Tel Aviv District Court, alleges that Migdalei Barashit has refused to pay Alumicon for aluminum and glass work performed on the luxury residential "Migdalei Barashit" tower in Tel Aviv's Bavli neighborhood. Alumicon, which specializes in advanced curtain walls for high-end projects, claims Efrati-Madpis, acting as the supervisor, is colluding with the developer by refusing to approve Alumicon's invoices.
According to Alumicon, the defendants exploited a clause in the contract stipulating that payments would only be made upon the supervisor's approval. Alumicon asserts that the supervisor, paid by the developer, has deliberately and in bad faith withheld approvals for work completed. The company further alleges that the defendants' unprofessional and negligent project management, including significant design changes after work had commenced, caused substantial delays and damages to Alumicon.
The lawsuit details that Migdalei Barashit and Efrati-Madpis owe Alumicon NIS 31.3 million for completed work and an additional NIS 29.1 million in damages. These damages stem from alleged mismanagement, project delays, and repeated design modifications by the developer, which forced Alumicon to redesign, reorder materials, and redo work. The original agreement, signed in July 2021 after initial understandings in June 2020, was for NIS 47 million plus VAT. Alumicon began work before the contract was finalized, relying on verbal assurances from Kozenoff, with whom the company's manager, Nessi Bachar, has a long-standing friendship.
Alumicon claims that Migdalei Barashit began evading payments in August 2022, yet Alumicon continued working until the project received its occupancy permit in April 2025. The suit also points to significant delays in the project's construction, including the delayed completion of the building's skeleton by nine months, modifications to several floors, and delays in planning the lobby and pool. Alumicon estimates each change can cause a year-long delay due to planning and material procurement times. Furthermore, Alumicon claims that rising material costs during the delays, exacerbated by the COVID-19 pandemic, increased the contract's cost by 70% and incurred NIS 11 million in material cost increases, alongside NIS 13.5 million in overhead costs. No defense has yet been filed.
