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ERP for Contracting and Fit-Out Companies — BOQ, Job Costing and Progress Billing in Odoo

How contractors in the UAE and Saudi Arabia track every dirham against the project
October 3, 2026 by
ERP for Contracting and Fit-Out Companies — BOQ, Job Costing and Progress Billing in Odoo
Muhammad Umer

For a contracting or fit-out company, the profit question is always "how is this project doing?", and most businesses can only answer it after the job has closed. Purchases sit in one place, labour in another, variations in emails, and billing in a spreadsheet. An ERP built around the project changes that. Here is how Odoo handles it for contractors in the UAE and Saudi Arabia.

Key takeaways
  • Each contract becomes a project with BOQ budget lines and an analytic account.
  • Purchases, site issues, labour and subcontractors post to the job automatically.
  • Variations, advance, progress and retention billing are tracked on the project.
  • Project P&L is visible during the job, not after it closes.

The typical contractor workflow

Client RFQ → estimate and BOQ → contract and advance invoice → procurement (supplier RFQs, POs, shipping) → delivery to site → installation with site labour → progress invoices → final invoice and retention release.

What usually goes wrong

  • Project profitability known only after completion
  • Materials bought without checking the BOQ budget
  • Variations agreed on site but never invoiced
  • Labour attendance and overtime on paper
  • Advance, progress and retention billing tracked in Excel

Want to see your project P&L live?

We'll walk you through BOQ-based job costing in Odoo using a contracting example.

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How Odoo structures it

Projects with BOQ budgets

Each contract becomes a project with an analytic account. BOQ lines become budget lines, so every cost posted to the project is compared against what was estimated.

Procurement tied to the job

Purchase requests and orders carry the project, so material and subcontractor costs land on the right job automatically. Landed costs (freight, customs) are added to the cost of the materials.

Direct issue to site

Materials can be delivered straight to site or issued from the warehouse to the project, capturing cost at the moment of issue.

Site labour and payroll

Timesheets and attendance record hours per project; payroll calculates salaries and overtime, and labour cost flows to the job.

Variations

Variations are recorded as change orders on the project, priced, approved and billed, so agreed extra work becomes revenue rather than a forgotten conversation.

Advance, progress and retention billing

Invoice the advance on signing, bill progress by milestone or percentage complete, hold retention as a receivable and release it at completion. In Saudi Arabia, each invoice goes through ZATCA Phase 2.

The report that matters: project P&L

LineSource in Odoo
Contract value and approved variationsSales order and change orders
Invoiced to date and retention heldCustomer invoices
MaterialsPurchase orders, vendor bills, stock issued to project
SubcontractorsSubcontractor POs and bills
LabourTimesheets and payroll
Margin vs BOQAnalytic budget vs actual

Standard first, custom only where needed

Most contractor needs are covered by standard Odoo (Projects, Purchase, Inventory, Accounting, Timesheets, Payroll). Specialised needs such as detailed BOQ control with variation tracking may need targeted custom modules. Decide that in a fit-gap exercise before pricing, not halfway through the build; see the eight phases of an Odoo implementation.

Frequently asked questions

Can Odoo do job costing for construction projects?

Yes. Projects, analytic accounting and budgets track materials, subcontractors and labour against each job, with profitability visible during the project.

Does Odoo support progress billing and retention?

Yes. Advance, milestone or percentage-of-completion invoicing and retention receivables can be configured, with retention released at completion.

Is Odoo suitable for fit-out companies in Saudi Arabia?

Yes, including ZATCA Phase 2 invoicing, multi-currency purchasing for imported materials, and payroll for site labour.

How much customisation do contractors usually need?

Most needs are standard. BOQ-level control and variation workflows are the common custom areas, and they should be scoped before the proposal.

Talk to C2P about your Odoo project

We implement Odoo for growing businesses in the UAE, Saudi Arabia, Oman and Pakistan, with VAT, e-invoicing, ZATCA and payroll built in. Fixed price, standard Odoo first.

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