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Financialaka: mob costaka: mobilizationaka: startup costs

Mobilization Cost

In Plain English

The upfront cost of getting equipment, workers, and facilities set up at a new job site.

Definition

Mobilization cost is the expense a contractor incurs to set up construction operations at a project site, including transporting equipment and materials, establishing temporary facilities, hiring and relocating personnel, and obtaining required permits. Mobilization is typically billed as a percentage of the contract in the first pay application. Demobilization covers the cost of removing equipment and closing out the site at project completion.

Example

The contractor billed $180,000 for mobilization in the first pay application to cover crane transport and site setup costs.

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