Fire Extinguished at BIG Construction Site in Petah Tikva, Financial Impact Still Unclear

A fire broke out in the underground parking lot of the BIG commercial and employment complex under construction in Petah Tikva, covering an area of approximately 2,000 square meters. Firefighters battled the blaze for several hours before declaring full control and extinguishing all hotspots. Following the fire, attention has shifted to assessing the extent of damage to the construction work already completed and determining whether the incident will affect the project’s timeline.

Experts warn that damage from such fires goes beyond what burns. Exposure to extreme heat can compromise structural components like concrete, while smoke and firefighting water may harm systems, waterproofing, building materials, and finishing work. This can necessitate dismantling and redoing parts of the construction, potentially delaying progress and increasing costs.

Insurance and risk management consultant Attorney Eti Greenberg-Gal emphasized that a fire at a construction site tests the project's insurance coverage. She noted that the financial exposure grows as the project advances because more value has been invested on-site, making repairs more costly. Typically, construction projects are insured under contractor’s all-risk policies, but the scope of coverage, limits, exclusions, and coverage for consequential damages will determine the financial outcome.

The full financial damage and impact on the construction schedule remain unknown until engineering inspections and damage assessments are completed. The incident highlights the importance of thorough risk management and insurance planning before construction begins to ensure adequate coverage for such events.