A mobilization budget: what the first month costs before the first billing is paid
The fence and trailers are ready to order. The job budget carries both, but the first payment is still some weeks away. You know what the setup should cost; nobody has shown when the company must pay for it.
Write a mobilization budget with two views: the cost of starting the job and the dates that cash leaves the company before receipts arrive. Price the opening setup and staffing, include deposits and payment timing, and review the gap with the owner or controller before making commitments. A cost allowance is not evidence that cash is available on the day a supplier asks for it.
Put dates beside the opening costs
- List the startup purchases. Walk the proposed site arrangement with the superintendent. Include temporary facilities, fencing, services, surveys, signage and the other items this job actually needs. Separate one-time setup from costs that continue each week.
- Price the opening people and period. Show the salaried team and crew expected before normal billing receipts begin. Use the company’s agreed costing basis and identify costs paid by the office so they are not counted twice.
- Ask when each amount is payable. Record deposits, delivery payments and supplier terms from the actual quote or agreement. Keep the cost date and cash date separate when they differ.
- Map the first receipt cautiously. Check the planned billing cutoff and the contract’s review and payment arrangements with the controller. Show an expected receipt as a forecast, with unresolved conditions visible, rather than treating an invoice as money collected.
- Agree the funding before committing. Show the largest cumulative gap and when it occurs. Ask the authorized company decision-maker to confirm the source and any limit. Record who can approve a changed commitment.
- Compare the opening weeks with the plan. Replace forecasts with actual orders and payments as they occur. The SBA’s forecasting guidance emphasizes using differences between plans and results to make management decisions. Keep the startup budget useful after the first order.
Common mistakes
- Counting a refundable deposit as a permanent cost while forgetting it still uses cash.
- Using the first invoice date as the expected receipt date.
- Ordering the setup before the company has reviewed the opening funding gap.
Checklist
Before the first order
- Price the actual site setup.
- Show opening staffing and continuing costs.
- Record payment dates and deposits.
- Mark receipt assumptions and conditions.
- Agree the funding owner and change limit.
Check your understanding
The setup is within budget, but the first receipt moves later. Is the mobilization plan still settled?
Show the answer
Recalculate the cash gap using the changed receipt date and the continuing outflows. The cost allowance may remain unchanged while the funding requirement increases. Bring that difference to the controller before further commitments rather than waiting for a supplier payment to become urgent.
