🇦🇪UAE

أخطاء في اختيار المقاول الفرعي (Subcontractor Selection Errors)

2 verified sources

Definition

Subcontractor selection based primarily on lowest bid without rigorous pre-qualification, financial stability checks, or past performance analysis. Manual bid comparison across multiple cost categories (labor, materials, equipment, overhead) is error-prone. Results in selection of undercapitalized or inexperienced contractors.

Key Findings

  • Financial Impact: LOGIC-based: Estimated 2–5% of project value (AED 200,000–500,000+ per major project) lost to rework, schedule delays, and contract disputes due to subcontractor failures. Manual bid evaluation: 20–40 hours per tender.
  • Frequency: Per subcontractor bid cycle; 8–15 major subcontracts per residential project
  • Root Cause: Lack of automated pre-qualification and financial health screening; no central bid comparison tools; manual documentation of contractor performance; no integration with vendor master data

Why This Matters

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

Affected Stakeholders

General Contractor, Project Manager, Procurement Lead, Contract Administrator

Deep Analysis (Premium)

Financial Impact

Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.

Unlock to reveal

Current Workarounds

Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.

Unlock to reveal

Get Solutions for This Problem

Full report with actionable solutions

$99$39
  • Solutions for this specific pain
  • Solutions for all 15 industry pains
  • Where to find first clients
  • Pricing & launch costs
Get Solutions Report

Methodology & Sources

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

Evidence Sources:

Related Business Risks

عدم الامتثال لقانون المناقصات العامة (Tender Law Non-Compliance)

LOGIC-based: Estimated AED 50,000–250,000+ per non-compliant tender (debarment penalties, rejected bids, contract cancellation). Typical manual bid administration: 15–25 hours/month per contract.

تأخر المدفوعات والتحقق من الفواتير (Payment Delays & Invoice Verification)

LOGIC-based: Estimated AED 5,000–20,000 monthly per subcontractor in delayed working capital (assuming AED 500,000–2,000,000 active contract value and 45–75 day payment cycle). Sector-wide: 1–2% of project cost per annum in working capital drag.

عدم الامتثال لمتطلبات الفواتير الإلكترونية (E-Invoicing Non-Compliance Risk)

LOGIC-based: Estimated AED 10,000–50,000 per audit per entity for e-invoicing non-compliance (based on typical UAE VAT audit penalties). Preparation cost: 10–20 hours/month manual invoice rework to meet emerging compliance. Large contractors (>AED 50M): ~AED 100,000+/annum compliance investment.

تجاوز التكاليف بسبب عدم وضوح العقود (Contract Ambiguity & Scope Creep Losses)

LOGIC-based: Estimated 3–7% of subcontractor contract value in change orders and disputes (AED 150,000–350,000+ per major subcontract on AED 2–5M values). Manual scope review: 15–30 hours per contract.

تجاوز التكاليف ونقص تتبع الميزانية

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

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

Request Deep Analysis

🇦🇪 Be first to access this market's intelligence