Mobilization cost refers to the expenses incurred at the start of a construction project to prepare the site, transport equipment, and deploy the workforce.
Typical Mobilization Costs
- Transporting heavy machinery and tools.
- Setting up site offices, fencing, and utilities.
- Initial labor and material procurement costs.
Managing Mobilization Costs
To avoid cash flow issues, contractors often negotiate mobilization payments upfront or structure them into progress payments.
Related Terms: Preconstruction Phase, General Conditions, Equipment Rental Costs, Project Startup Costs
FAQs
Can mobilization costs be reimbursed?
A: Yes, they are often included in contracts as an upfront payment to ensure contractors can cover initial expenses.
How can contractors minimize mobilization costs?
A: By optimizing logistics, using local suppliers, and carefully planning site setup.