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 In the run up to the 2022 FIFA World Cup, Qatar signed the first stages of a contract to build a metro system in the city of Doha. According to railwaygazette.com, the total contract value is $36 billion and the work will take 6-7 years starting in 2013.  Most of the materials for the contract will need to be imported, and it is likely that labour will also need to be recruited from outside the country.

This is a great example where contract costing system would be used. The metro works take many years, and there are likely to be many more direct costs than in a normal job-costing scenario – e.g. tunnelling machines, supervisors on site. Although the Doha metro contract is not a commercial contract, it will still need to have a system in place to track costs and work will be completed in stages – each stage most likely being approved by architects. This will help the Doha city authorities keep costs in target and arrange stage payments.

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