Construction ERP for UAE

Project payment practices in the UAE construction industry have historically involved extended payment terms, leading to cash flow challenges throughout the supply chain. The payment terms framework requires careful management of progress billing, retention (typically 10% during construction, reduced to 5% during the defects liability period), and performance bond tracking. The UAE courts and the Dubai International Financial Centre (DIFC) courts provide different legal frameworks for dispute resolution, and construction arbitration commonly follows DIAC or ADCCAC rules.

VAT at 5% applies to construction services and property transactions, with specific rules for the first sale of residential property within three years of completion (zero-rated) versus subsequent sales or commercial property (standard-rated). Corporate tax at 9% was introduced in 2023, affecting construction company profitability calculations. Labor regulations under MOHRE govern the large expatriate workforce that dominates UAE construction, with the Wage Protection System requiring salary payments through approved banking channels.

Yukti provides UAE construction companies with project accounting that manages escrow account obligations in Dubai, tracking buyer payments into designated accounts and release conditions tied to construction milestones. The billing module generates FIDIC-compliant interim payment certificates with retention tracking at 10% and 5% rates. Subcontractor management handles the multi-tier supply chain with payment tracking and lien management. The labor module processes WPS-compliant payroll for the large workforce, manages labor camp accommodation costs, and tracks end-of-service gratuity calculations under UAE labor law. VAT handling applies the correct treatment to residential and commercial property transactions. Corporate tax calculations at 9% are integrated into project profitability analysis. The document control module manages the extensive submittals, RFIs, and shop drawings that UAE construction projects generate.