Military Contracts and Contracting in Israel
David Stiebel. . . .21/11/2014
Throughout the lifespan of the Corps of Engineers management of projects in
Israel there have been many issues some of which are addressed in the latest
MATOC documentation and requirements and some which are contractor related and
not addressed by the USACE.
Some of the most difficult are addressed herein.
- Key Personnel:
An issue which keeps coming up again and again due to either not read or not implement properly (with or without intent).
All key personnel will be direct hire of the prime contractor, not sub-contracted. Recently USACE has asked for full contracts in the QC-Plans, expect this.
- Contracts: Be sure to include:
- Flow-down the USACE contract in-full to your Israel partners.
- Include QC staff under prime contractors full authority and control.
- Separate out labor from materials during line item pricing by the subs.
- USACE feedback, CCASS should be requested at 1/4 to 1/3 intervals of the
- 100% bank guarantees are sometimes a sticky item and must be addressed.
- The QC team.
The QC team is the most difficult item to implement due to the differences in
construction culture. Given this it must be written specifically that all QC
members are under direction of the prime and work according to section
01.54.01 of the USACE contract. This is due to Israel construction viewing the
QC team as the right arm of the contractor who directs the mechanical,
electrical or civil items, not the right arm of USACE as defined in the USACE
Contractor Quality Control course so it is difficult to have them function as
defined in the contract. Some USACE leeway is afforded (by local COR’s when
they see fit). Essentially you need to work by the “contract” which leads to
sub-contractors believing they are being punished or abused by the prime when
they are not fulfilling the contract terms*. (I could write a book here)
* My experience is that most Israeli contractors do not read the contract but
only implement what is on the plans or as per COR dictates, so ½ the contract is
not seen or implemented by the subs. Also, be advised most Israeli contractors
try and play "catch-me-if-you-can", not all but most. In Israel its called
"contractors games", yes there is a term for this.