Unfair Gaps🇦🇪 UAE

Building Structure and Exterior Contractors Business Guide

31Documented Cases
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All 31 Documented Cases

قرارات خاطئة بشأن تقييم التأخير بسبب بيانات ناقصة (Flawed Delay Assessment Decisions Due to Incomplete Data)

Estimated: Misclassified delays result in 10–30% underclaiming or overclaiming per event. Typical claim value = AED 500,000–2,000,000; 10–30% error = AED 50,000–600,000 per incident. Multi-site contractors: 3–5 events/year = AED 150,000–3,000,000 cumulative decision error impact.

Without automated, real-time documentation, project managers lack visibility into whether weather events were truly 'exceptional' (vs. normal for season), whether delays affected critical path tasks, and how much cost/time relief is justified. Manual reconstruction of causality is prone to errors, leading to either under-claimed entitlements (contractor loss) or over-claimed entitlements (employer liability).

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تجاوز التكاليف بسبب سوء إدارة أوامر التغيير والنطاق الزاحف

Quantified: 3-7% of contract value per project; for AED 50M contract, equals AED 1.5M–3.5M potential loss

Poorly managed change orders lead to scope creep—where agreed-upon work expands without formal documentation or cost adjustment. This results in labor inefficiencies, material waste, equipment utilization delays, and rework.

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خسارة الإيرادات بسبب عدم تفويض التغييرات وعدم القدرة على الفواتير

Quantified: 2-4% of contract value; for AED 50M contract, equals AED 1M–2M unbilled revenue

Change orders executed without formal client approval or clear scope documentation cannot be invoiced. Work is completed but remains unbilled, either written off or disputed during final account negotiations.

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مخاطر النزاعات والعقوبات بسبب فجوات التوثيق في أوامر التغيير

Quantified: 20-30% premium on dispute costs; typical arbitration: AED 2M–5M baseline → AED 2.4M–6.5M with documentation gaps; plus 10-20% award reduction risk

Poorly documented change orders create evidence gaps. When disputes arise under UAE Arbitration Law No. 6 of 2018, contractors face higher arbitration/mediation costs and lower success rates on claims. Documentation gaps add 20-30% to dispute resolution expenses.

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