Engineering Firm's Fees Revealed Amid Subcontractor Lawsuit
Translated & summarized from Bizportal by baba
The story in 6 lines · by baba
- Engineering firm David Engineers faces a lawsuit for 8 million shekels in alleged unpaid fees.
- The lawsuit reveals the firm charges over 1 million shekels on average per project.
- Former subcontractor Tamir Nahari claims he was entitled to 37.5% of project fees.
- Nahari alleges the firm misrepresented client payments to him.
- David Engineers has handled 3,300 projects and employs 160 people.
- The firm specializes in structural design for various building types.
The engineering firm David Engineers, one of Israel's largest, charges millions of shekels per project, according to details revealed in a lawsuit filed by former employee and subcontractor Tamir Nahari. Nahari is suing the firm for 8 million shekels in unpaid wages and fees. His lawsuit includes appendices detailing project stages and the fees he claims are owed to him, which allow for the calculation of the firm's total earnings.
Founded in 1990 by Yael and Israel David, who still manage it, David Engineers specializes in structural design for various building types, including towers, offices, residential buildings, hotels, and public structures. The firm also provides engineering consulting for civil engineering, infrastructure, and strategic facilities. According to its website, the company has handled 3,300 projects in 24 countries and employs 160 people.
Nahari worked as an employee from 2018 to 2021 and then began providing services as a subcontractor through his own company. He claims he was to receive 37.5% of the client's payment for each project, with a monthly advance of 100,000 shekels since January 2025. The lawsuit alleges that David Engineers misrepresented the amounts received from clients, paying Nahari only a partial sum and less than what was actually collected.
The lawsuit details Nahari's alleged work and the fees he claims are due. Based on his 37.5% claim, the firm's fees for 16 specific projects detailed in the suit total approximately 16.6 million shekels before VAT, averaging over 1 million shekels per project. These projects include major developments like the "Pinkas 40-32" urban renewal project in Tel Aviv (625,000 shekels), "Yovelim Ganim" in Jerusalem (1.1 million shekels), and the "Carso-Vitnia Business Park" in Petah Tikva (4.9 million shekels).
Last year, Nahari and David agreed to terminate their arrangement. In February, the firm offered Nahari 300,000 shekels towards his outstanding claims, citing dissatisfaction with his work. Nahari asserts that he learned from clients that significantly higher sums were paid for projects he worked on. A defense statement has not yet been filed in the lawsuit, which was submitted by attorneys Hilal Ish-Shalom and Yarden Azarhen.