🇦🇪UAE

تجاوز التكاليف ونقص تتبع الميزانية

4 verified sources

Definition

Rising construction costs in UAE driven partly by poor job-level cost visibility. 80% of companies expect disputes due to unclear cost allocations and design changes. Material and labor cost increases compound when budget tracking is manual or fragmented.

Key Findings

  • Financial Impact: 2-5% cost overruns annually (AED 3.8-9.5 billion across UAE market of AED 189.59 billion); typical project: AED 500,000-2,000,000 per project overage
  • Frequency: Continuous (monthly cost escalations during 2025)
  • Root Cause: Manual job costing, lack of real-time budget tracking, contractor fragmentation, material price volatility

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Residential Building Construction.

Affected Stakeholders

Project Managers, Site Engineers, Cost Controllers, Finance Managers

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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

تأخير السداد والتحقق البطيء من الفواتير

1 in 4 projects (25%) experience delayed payments; typical contractor loses 30-60 AR days per project; at 5% annual financing cost: AED 50,000-500,000 per AED 10M project annually

تكاليف الامتثال والعقوبات الضريبية

17% of project budgets (AED 18.4-32.2 billion annually); typical penalties: AED 5,000-50,000 per compliance gap per audit; VAT penalties up to 25% of unpaid tax; Corporate Tax penalties 10-20% of underpaid tax

أخطاء القرار بسبب نقص الرؤية في تكاليف الوظائف

80% of projects experience disputes; estimated 10-20% of disputes (8-16% of 80% = 6.4-12.8% of projects) stem from cost visibility gaps; typical impact: AED 100,000-500,000 per dispute resolution (legal, rework, delay penalties)

خسارة الاستحقاق بسبب عدم الامتثال لفترة الإخطار بالتغييرات (Loss of Entitlement Due to Variation Notice Non-Compliance)

AED 100,000–500,000 per forfeited change order (100% loss of claimed variation cost)

تأخير الموافقة على أوامر التغيير يؤدي إلى تمديد الجدول الزمني والتكاليف الإضافية (Change Order Approval Delays Causing Schedule Extension & Cost Overruns)

AED 50,000–200,000 per day of delay × 5–10 days typical = AED 250,000–2,000,000 per change order

تسريب الإيرادات من أوامر التغيير غير المسجلة والفواتير المفقودة (Revenue Leakage from Untracked Change Orders and Lost Invoices)

AED 200,000–1,500,000 per project (2–5% of typical AED 10M–30M project variation costs)

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