Mitigation versus reconstruction

Definition

The urgent cleanup that stops the damage, against the rebuild after, at different margins.

Why It Matters

Mitigation is fast, better margin, and paid by an insurer; reconstruction is slower, more competitive, and priced against general contractors. The split tells a buyer where the profit is and, just as important, where the cash is trapped, because reconstruction ties up money for months. Ask what the collection cycle looks like on each half separately, since a firm growing its rebuild work is growing its working-capital need at the same time.