Most construction companies know their margins are thin. Fewer know exactly where the margin goes. It rarely disappears in one big loss. It leaks, a little at a time, through gaps in records and missed dates.
Leak 1: the missed time bar
Many contracts set strict periods for notices. Under FIDIC 2017, for example, the Contractor must give a Notice of Claim within 28 days of becoming aware of the event (Sub-Clause 20.2.1), or the claim can be time-barred. A strong entitlement can be lost on a date.
A 30-day delay caused by late access, with site overheads of AED 25,000 per day, is worth AED 750,000 in prolongation cost, plus the extension of time that protects against delay damages. If the notice goes out on day 31, all of it may be at risk.
How Quanto closes it: when you choose the form of contract, every period and time bar is loaded and counted on the project's calendar. Each clock shows its clause, who must act and by when, and reminders arrive two days before the deadline.
Leak 2: work done but never priced
Instructions are given on site, the work is done, and the variation is never submitted, or is submitted months later without the evidence to support it.
How Quanto closes it: every instruction from the Engineer or the owner must be answered by the contractor as no cost, variation or disputed. Variations are priced by item, submitted, reviewed by the consultant and approved by the owner, with every step dated and named. The revised contract sum is always original plus approved variations.
Leak 3: late and incomplete payments
Every month that a payment application is late, incomplete or disputed is a month of financing the project yourself.
- Progress entered by BOQ line builds the application automatically.
- The Engineer certifies line by line, with reasons for any amount held, so disagreements are specific instead of general.
- Owner payments are recorded and confirmed, and vendor aging shows what you owe and what you are owed.
Leak 4: retention and advance recovery nobody tracks
Retention released at completion and at the end of the defects period is often simply forgotten. Advance payment recovery can be over-deducted without anyone noticing.
How Quanto closes it: retention, advance recovery, materials on site and amounts held for open NCRs are calculated in each certificate. Work orders carry their retention and its release date. Guarantees and bonds have expiry alerts.
Leak 5: cost overruns seen too late
If actual cost is only compared with budget at the end of the month, or at the end of the project, an overrun is a surprise rather than a decision.
How Quanto closes it: for each cost code you see contract value, budget, committed, actual and what is still to order. A purchase order cannot be issued without a vendor quotation attached. Expected final cost and margin are shown per project and across the company.
Small leaks, large totals
None of these leaks is dramatic on its own. Together, on a project of several tens of millions, they can be the difference between the margin in the tender and the margin at the final account. Closing them does not need more people. It needs every date counted, every instruction answered and every amount linked to its record.
Tomorrow: saving effort, with letters, registers and reports that build themselves from the work.
General information only. Periods and procedures depend on the form of contract and its particular conditions; always check your own contract.
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