Glossary

Construction and UAE finance terms, explained

Short, accurate definitions of the words contractors, quantity surveyors and accountants use every day in the UAE, each with how Civova handles it.

Last updated 14 Nov 2026

Contracts and payment

Interim Payment Certificate (IPC): An interim payment certificate (IPC) is the document that certifies the value of work completed to date on a construction contract and the amount the employer must pay for the current period.
Retention: Retention (retention money) is a percentage of each interim payment that the employer holds back as security until the works are complete and defects have been put right.
Advance payment recovery: Advance payment recovery is the deduction, from each interim payment certificate, that repays the mobilisation advance the employer paid the contractor at the start of a project.
Bill of quantities (BOQ): A bill of quantities (BOQ) is the priced list of every item of work in a construction contract, each with a description, unit, quantity and rate, that tenders are compared on and progress is measured against.
Variation order: A variation order is a formal instruction, issued after the contract is signed, that adds to, omits or changes the work, and adjusts the contract price, and sometimes the time, accordingly.
Final account: The final account is the statement, agreed between employer and contractor at the end of a contract, of the total amount due for the works: the contract sum adjusted for measured work, variations, claims and deductions.

Piling and foundations

Bored pile: A bored pile is a cast-in-place concrete foundation pile, formed by drilling a hole into the ground, lowering a steel reinforcement cage into it and filling it with concrete.
CFA pile (continuous flight auger): A continuous flight auger (CFA) pile is formed by screwing a hollow-stem auger to depth and pumping concrete down the stem as the auger is withdrawn, then plunging the reinforcement cage into the fresh concrete.
Pile cut-off level: The pile cut-off level is the level to which a finished concrete pile is trimmed, so that sound concrete and the projecting reinforcement connect properly into the pile cap or ground beam above.
Kelly bar: A kelly bar is the telescopic steel drill rod of a rotary piling rig: it passes through the rig's rotary drive and transmits torque and downward force (crowd) to the auger or drilling bucket at its end.
Tremie concrete: Tremie concreting is the method of placing concrete under water or drilling fluid through a vertical pipe (the tremie) whose end is kept buried in the fresh concrete, so the concrete rises from the bottom without mixing with the fluid.
Pile integrity test (PIT): A pile integrity test is a non-destructive check of a finished concrete pile for defects such as cracks, necking or inclusions. It is most often a low-strain test in which a small hammer blow sends a stress wave down the pile.

Procurement and stores

LPO (local purchase order): An LPO (local purchase order) is the term widely used in the UAE for a purchase order: the document a company issues to a supplier confirming the items, quantities, prices and terms of a purchase.
GRN (goods received note): A goods received note (GRN) is the record, made when a delivery arrives, of what was actually received against a purchase order: items, quantities and condition.
Three-way match: Three-way match is the control that checks a supplier's invoice against the purchase order (LPO) and the goods received note (GRN) before the invoice is approved for payment.
FIFO costing: FIFO (first in, first out) costing values each issue of stock at the cost of the oldest units still on hand, so materials are charged to jobs at what they actually cost when they were bought.

UAE tax

TRN (tax registration number): A TRN (tax registration number) is the unique 15-digit number the UAE Federal Tax Authority issues to every business registered for VAT.
Reverse charge (VAT): Under the reverse charge mechanism, the VAT-registered buyer accounts for the VAT on a supply instead of the supplier, mainly on services and goods imported from outside the UAE, and on certain specified domestic supplies.
EmaraTax: EmaraTax is the Federal Tax Authority's online platform where UAE businesses register for tax, file VAT and Corporate Tax returns and make payments.
Small Business Relief (Corporate Tax): Small Business Relief is a UAE Corporate Tax election that lets a resident business whose revenue is under a set threshold be treated as having no taxable income for the tax period.

Payroll, HR and data

WPS (Wage Protection System): The Wage Protection System (WPS) is the UAE system through which private-sector employers pay salaries via an approved bank, exchange house or agent, so that the Ministry of Human Resources and Emiratisation can confirm wages are paid in full and on time.
SIF (Salary Information File): A SIF (Salary Information File) is the file a UAE employer sends to its bank or exchange house to pay salaries through the Wage Protection System: one record per employee and a control record with the totals.
End-of-service gratuity: End-of-service gratuity is the lump sum a UAE private-sector employer pays an employee when their employment ends, calculated on the last basic wage and the length of continuous service.
Nafis and Emiratisation targets: Nafis is the UAE federal programme that supports Emirati citizens working in the private sector; it sits alongside the Emiratisation targets private companies must meet for the share of Emiratis in their workforce.
PDPL (Personal Data Protection Law): The PDPL is the UAE's federal Personal Data Protection Law, which sets the rules for how businesses collect, use, share and keep personal data and the rights individuals have over their data.

Workshop

Job card: A job card is the workshop document that follows one repair or service job from intake to invoice: the machine and the fault, the work done, and the spare parts and labour hours used.

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