🇦🇪UAE

عدم تتبع الفواتير والدفعات الجزئية المفقودة (Unbilled/Untracked Retainage & Partial Payment Loss)

Updated: Feb 20262 verified sources

Definition

Search results [1][4] show retention held 6–12 months post-completion. For a AED 10M project with 5% final retention (AED 500K), contractor generates invoice at handover but must re-invoice when retention released (6–12 months later). Manual processes create: (1) forgotten invoices (2–3% loss rate), (2) incorrect VAT treatment (5% × AED 500K = AED 25K VAT due but not collected), (3) unclaimed interest/late-payment penalties. Contractor with 10 concurrent projects: 10 × AED 500K = AED 5M in pending retention invoices; 2–3% loss = AED 100K–150K revenue leakage annually.

Key Findings

Financial Impact: Direct invoice loss: 2–5% of total retention amounts unbilled = AED 100K–500K per contractor per year (assuming AED 100M–500M annual contract value). VAT tracking errors: AED 20K–100K annually. Interest/penalty recovery shortfall: AED 10K–50K annually. Total annual loss: AED 130K–650K.
Frequency: Per project completion (6–18 month cycle); affects 100% of contractors with multi-year project pipelines.
Root Cause: Manual invoice generation; poor integration between retention schedules and billing systems; lack of automated reminders for final invoice issuance; no centralized retention tracking.

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Building Structure and Exterior Contractors.

Affected Stakeholders

Accounts Receivable, Billing Manager, Finance Controller, Project Manager

Deep Analysis (Premium)

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

تأخير الدفعات النهائية بسبب فترة الضمان (Retainage Cash Flow Drag)

AED 50,000–500,000 per project in working capital financing costs (12% annual cost of capital on retained 5% of contract value); typical contractor portfolio: 5–10 concurrent projects = AED 250K–5M annual cash flow drag.

خطأ توقيت ضريبة القيمة المضافة على الاحتفاظ (VAT Timing Mismatch on Retention)

Direct cash flow loss: AED 25,000–250,000 per project (5% VAT on 5% retained amount, for projects AED 5M–50M). Annual penalty exposure (FTA audit non-compliance): AED 5,000–50,000 per invoice × 12–50 invoices/year = AED 60,000–2.5M. Typical contractor impact: AED 150,000–500,000 annually in mishandled VAT timing.

قرارات غير مستنيرة بسبب نقص البيانات الفورية (Lack of Real-Time Retention Visibility)

Excess borrowing cost: AED 50K–500K annually (10–15% interest on AED 500K–5M in over-borrowed amounts due to retention uncertainty). Missed refinancing: contractor could refinance at 8% but doesn't know retention release schedule; misses 2–3% savings = AED 100K–300K annually on AED 5M–15M portfolio. Delayed cash recovery: manual defect verification adds 30–90 days beyond contract; AED 50K–200K in lost interest/opportunity cost per project × 5–10 projects = AED 250K–2M annually.

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