🇦🇪UAE

تأخير استرجاع تكاليف الإصلاح والتعويضات (Delayed Recovery of Repair Costs and Compensation)

2 verified sources

Definition

Defect compensation claims under Article 883 (repair costs, loss of use, rental income, property diminution) require submission to court or arbitration. Manual claim assembly (evidence gathering, assessment reports, quotes from third-party repair contractors, proof of damages) takes 2–4 months. Court proceedings in UAE typically resolve in 12–36 months depending on case load and complexity. During this period, contractors carry unreimbursed repair costs on balance sheet, increasing accounts receivable aging and straining cash flow. No automated claims management or early settlement negotiation pathway exists in typical contractor workflows.

Key Findings

  • Financial Impact: AED 100,000–500,000+ per claim in unreimbursed damages held in receivables for 12–36 months. Estimated working capital cost: 3–8% annual financing cost on delayed amounts. Portfolio impact: AED 1–3 million annually in delayed recovery per mid-sized contractor (5–10 active claims).
  • Frequency: Per defect claim cycle; compounding as claims accumulate over 10-year decennial liability period.
  • Root Cause: Manual claim documentation and evidence assembly, lack of automated claim routing to legal/arbitration teams, absence of early settlement negotiation workflows, slow court resolution timelines (inherent to UAE judicial system but avoidable via arbitration).

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Building Equipment Contractors.

Affected Stakeholders

Accounts Receivable, Finance Manager, Legal Counsel, Project Controls, Treasury

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

خسارة مطالبات الضمان بسبب فوات المواعيد النهائية (Loss of Warranty Claims Due to Missed Deadlines)

AED 200,000–1,000,000+ per major project (typical structural/equipment defect repair costs). Conservative estimate: 5–15% of annual contracting revenue lost to expired claims across portfolio.

إلغاء ضماتات المقاول بسبب عدم الامتثال للتوثيق (Contractor Warranty Nullification Due to Documentation Non-Compliance)

AED 150,000–750,000+ per major defect claim (loss of entire recovery due to documentation failure). Estimated 10–20% of valid claims rejected due to incomplete evidence; typical project portfolio loss: AED 500,000–2,000,000 annually.

فقدان الإنتاجية بسبب إجراءات الادعاءات اليدوية (Capacity Loss Due to Manual Claims Procedures)

40–100+ hours per project annually at AED 150–250/hour (project manager rate) = AED 6,000–25,000 per project per year. Portfolio of 10 projects = AED 60,000–250,000 annual capacity loss (2–5% of project management labor cost). Opportunity cost: lost upsell/scope expansion revenue (estimated 3–5% of project value foregone).

فقدان حقوق مقاولي المستوى الثاني من المطالبات (Subcontractor Claim Rights Loss)

AED 50,000–200,000+ per subcontractor per project (typical mechanical/electrical/waterproofing defect repair costs). Estimated 2–3 concurrent projects per contractor with 1–2 subcontractor defects per project = AED 100,000–600,000 annual revenue loss (claims written off as uncollectible).

اختناقات التحقق من الامتثال والتأخيرات في المشاريع

3–15 working days delay per project = delayed revenue recognition; estimated AED 50,000–AED 500,000+ per major project (based on typical contract values and daily burn rates)

تكاليف إعادة الاختبار وأخطاء التوثيق

AED 5,000–AED 15,000 per re-test event; estimated 2–5 re-test events per large project = AED 10,000–AED 75,000 per project; annual portfolio loss: AED 100,000–AED 300,000+

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