Harish arbitration ends with Neot Hanan ordered to pay nearly NIS 2 million

A long-running arbitration over a housing project in Harish has ended with most claims from Neot Hanan rejected and the association ordered to pay almost NIS 2 million. In a 139-page reasoned award issued on April 26, 2026, the arbitrator said Neot Hanan’s case was “inflated” and did not reflect the real disputes between the sides.

The project began in 2012 as a buying group involving 744 families. After Neot Hanan won a tender from the Israel Land Authority and the Ministry of Construction and Housing in January 2013, it hired BeEmunah Project Development and Management Ltd. to manage construction for a fee of 9% of project costs. The relationship later deteriorated, and the management agreement was canceled in 2019.

Neot Hanan sued BeEmunah over alleged defects and failures, including delays in arranging bank financing, construction defects and engineering supervision problems. Its claim started at NIS 31 million and rose in closing arguments to about NIS 46 million, but the arbitrator awarded it only about NIS 1.2 million for two specific items.

BeEmunah filed a counterclaim for about NIS 5.1 million, citing delayed management payments, allegedly defamatory publications and various contractual damages. That claim was also only partly accepted, with BeEmunah awarded about NIS 1 million. In addition, Neot Hanan was ordered to pay NIS 1.5 million plus VAT in legal fees, NIS 42,500 for expert expenses, and 75% of the arbitration costs. The remaining funds held in trust were transferred to BeEmunah.