Your Materials, Our Labour: How the Model Works in the Middle East

Short answer: under the "you supply the materials, we supply the labour" model, often called a labour-only contract, the client chooses the building materials, buys them and has them delivered to site; the contractor provides the tradespeople, the crew, site management and the work programme. It suits a client who has their own supply network and can keep on top of purchasing. Most of the risk lies in the materials arriving on time, in the right quantity and at the right quality, which is why the delivery schedule, the wastage allowance and liability for defects should each be set out separately in the contract.

Some of those investing in the Gulf states and Iraq buy materials directly from the manufacturer or through their own import channel; what they are missing is a team to run the site. The same model is used in Türkiye on villa and housing work as well. Savaş Grup has also completed projects in Dubai, Qatar and Iraq.

Who takes on what under this model?

Item	Usually handled by	What to watch
Choosing and buying materials	Client	Brand, grade and technical properties are written into the specification.
Shipping, customs and delivery to site	Client	The delivery point must be clear: the site gate, or the floor where the material will be used?
Storage and protection on site	Set by the contract	State who carries the risk of theft and damage.
Scaffolding, formwork, crane, hand tools, consumables	Set by the contract	The item that causes the most disputes; list each one individually.
Tradespeople, crew, site manager, health and safety	Contractor	Crew size is tied to the work programme.

The labour price is agreed either as unit rates or as a lump sum; the work done is measured by quantity take-off and paid through progress payments.

Who is this model for?

• A client who can buy materials on better terms from the manufacturer or through their own import channel.
• A client who has to work with a particular brand or product range: a hotel chain's standard products in hotel construction, or the floor finish a production line calls for in factory construction.
• A client with a team to handle purchasing and someone to represent them on site.

If you want a single point of contact, or a budget fixed from the outset, a turnkey contract, in which the contractor buys the materials too, is the better choice.

Where do the risks lie?

Late materials

The most common problem is a crew standing on site waiting for materials. Work stops, but the tradespeople's wages, their accommodation and the site overheads keep running; on international jobs, customs clearance and shipping times make the risk bigger. The fix is to put a "required on site" date against every material in the work programme, and to order long-lead items such as windows and doors, façade cladding, lifts and mechanical equipment as soon as the design is approved. Standby costs for the crew and extensions of time should also be defined in the contract from the start.

Responsibility for quality

The client and their supplier are responsible for defects in the material; the contractor is responsible for defects in the workmanship. Disputes arise in the grey area between the two: a tile adhesive that does not suit the tile, plasterboard left standing on a wet floor. The contractor has to use the materials the client provides with care, account for them and hand back whatever is left over, and must report in writing any defect they spot in a material before installing it. The provisions on contracts for work in the Turkish Code of Obligations point the same way. On a project outside Türkiye, the contract should state which country's law applies.

Quantities and wastage

When the client works out order quantities from the drawings themselves, losses from cutting, breakage and pouring are often left out; the material arrives short, or the surplus ends up as stock sitting on site. A sounder approach is for the contractor to produce the material take-off, the client to approve it, and an agreed wastage allowance to be written down for each item. Every delivery that enters the site should be logged with a delivery note and an acceptance record, and when the work is finished the leftover material should be counted and returned.

What should the contract pin down?

• The work included and excluded, with the drawings and the technical specification attached to the contract.
• The brand and grade of each material, the standard it must meet (TS EN, the Turkish editions of European standards, or the standard of the country where the work is done) and an approved sample.
• The material delivery schedule, the delivery point, how deliveries are accepted on site, and the wastage allowance.
• The labour price, how quantities will be measured, and the progress payment period.
• Standby costs and extensions of time if there are delays; written approval for any extra work.
• On a project outside Türkiye: visas, work permits, accommodation and transport for the crew, and the currency of payment.

How does the process run?

1. The construction drawings are reviewed and the labour quantities and material list are drawn up. The quantity-based quotation is prepared from this list and is free of charge.
2. The material schedule is set up alongside the work programme, and long-lead items are ordered.
3. The site is set up and the crew arrives. In some Gulf countries outdoor work is restricted at midday during the summer months, so shifts are planned around it.
4. Deliveries are accepted against a signed record; the work done is measured at the end of each period and paid as a progress payment.
5. The snag list is closed out, leftover material is returned and the acceptance certificate is signed.

Frequently Asked Questions

Who is responsible for the quality of the materials?

The client and their supplier for the material itself; the contractor for installing it correctly. A product that does not match the approved sample is rejected on delivery, and the rejection is recorded in writing.

Does it work on small projects too?

Yes. It is also used on a single villa or for the finishes of one building. On a smaller job the materials are easier to keep track of; the points to settle in the contract stay the same.

Is it cheaper than turnkey?

If you can buy the materials on better terms, the overall budget may come down; but the work of purchasing, logistics and storage, and the risk that goes with it, stays with you. Compare the two models on the basis of a quantity-based quotation for each; how a turnkey price is put together is explained in our article on turnkey construction costs.