Process
Mobilization
Also called: mobilization costs, move-in costs
Definition
Mobilization is the cost of getting a construction job started before the first pay application — moving crews and equipment to the site, permits, insurance, and materials deposits — all spent weeks before the project pays anything back.
Every construction project front-loads its costs. Before the first draw or pay application arrives, the contractor has already paid to move equipment, staff the site, pull permits, bond the job, and put deposits on materials — and on many contracts the first payment lands 30 to 60 days after that work begins. Mobilization is why winning a bigger job can create a cash problem rather than solve one.
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