Mobilization cost

Definition

What it costs to get a crew and its machines onto a site before any work is billed.

Why It Matters

It is why a small paving job can lose money at a price that looks profitable per square foot: the paver, the roller and the crew have to arrive whichever size the job is. A book of many small driveways and a book of few large lots are different businesses at the same revenue. Ask for gross margin by job size instead of in total, because the average hides which half of the work is subsidising the other.