Construction procurement and site stores in the UAE
Construction procurement runs from a priced quotation to material installed on site: the landed cost is built up, a purchase order is placed, the shipment is tracked through bill of lading and delivery order, goods are received against the order, stock is held for the project, and site requests, usage and waste are recorded until the material is inspected and claimed.
Pricing: the landed cost
A contractor importing material prices it on its landed cost: the supplier price plus freight, insurance, duties and the cost of getting it to site. In SupaJack Construct the landed price is calculated from its components and stored with the quotation, so a historic quote still shows the figure it was priced on after a component changes. Import VAT is accounted for at 5% under the FTA's rules for importers, which a registered importer can usually recover.
Import VAT and free zones
Material imported into the UAE mainland is subject to 5% import VAT. A VAT-registered importer accounts for it on the return and normally recovers it, while an unregistered importer pays it before the goods are released. Goods moved into a designated zone follow separate rules, so a contractor sourcing from a free zone warehouse should check how the FTA treats the movement before pricing.
From order to site
Each step hands its record to the next. A goods receipt built from the purchase order, commercial invoice, bill of lading and packing list means the quantity received can be checked against what was ordered and what was shipped.
| Step | Document | What it proves |
|---|---|---|
| Order | Purchase order | What was bought, at what price, for which project |
| Shipping | Bill of lading | The goods are on board and in transit |
| Release | Delivery order | The shipping line or agent will release the goods |
| Receipt | Goods received note | What actually arrived, against the order |
| Project stock | Stock allocation | How much of what arrived belongs to this project |
| Site | Material request and delivery note | What site asked for and what was sent |
| Proof | Material inspection report | The material on site meets the approval |
Keeping site stores honest
Stock reports by warehouse do not tell a project manager what belongs to their job. SupaJack Construct keeps an allocation per project, so each project sees only the stock its own orders brought in. Once material reaches site, entries record whether it was installed, wasted or went missing, so the difference between delivered and installed is visible before it turns into a cost overrun.
Approvals that protect the budget
A site material request in SupaJack Construct is accepted by the commercial team and then approved by logistics, in that order, and finance is notified when the delivery note is submitted. The database refuses an approval out of order, so the chain cannot be skipped by a shortcut.
Common mistakes
- Pricing a quote on supplier price alone and losing the margin to freight and duties.
- Receiving goods without matching them to the purchase order and bill of lading.
- Treating warehouse stock as available to any project when another job paid for it.
- Recording deliveries to site but never what was installed or wasted.
- Claiming materials on an interim payment before the material inspection is approved.
Where it connects to getting paid
Materials delivered and inspected support the interim payment application for materials on site. Read the interim payments guide, the VAT guide for contractors, and use the payment certificate calculator, VAT calculator and retention calculator.
Questions people ask
What is landed cost in construction?
The total cost of getting material to site: supplier price, freight, insurance, duties and delivery.
Is VAT charged on imported construction materials?
Yes. Import VAT is 5%, accounted for under the FTA's importer rules, and a registered importer can usually recover it.
What is a bill of lading?
The shipping document that shows goods are on board and in transit.
What is a delivery order?
The shipping line's or agent's release of the goods against a confirmed bill of lading.
What is a goods received note?
The record of what actually arrived, checked against the purchase order.
How should site stock be tracked?
By project, so each project sees what its own orders brought in, plus what was used, wasted or lost on site.
Who approves a material request?
In SupaJack Construct, the commercial team first and then logistics, with finance notified on delivery.
Why record wastage?
Because the difference between delivered and installed is a cost that otherwise stays hidden until the project closes.
When can materials be claimed?
When they are on site and the material inspection report is approved, under the contract's materials-on-site terms.
What about goods in a designated free zone?
Movements into designated zones follow the FTA's designated zone rules, which differ from mainland imports.
Does e-invoicing affect purchase invoices?
Yes. From 2027 in-scope businesses will exchange invoices electronically under the Ministry of Finance's e-invoicing system.