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What is the definition of "Mobilization" using AIA 702 and 703 forms and should it be paid @100%:

New YorkCollections

CM has decided arbitrary that mobilization is is a progress billing and not a 100% payout at the beginning of the project.

1 reply

Dec 9, 2019
I'm not aware of one singular definition for "mobilization," but as you likely know, this refers to the costs necessary to get the job up and running. Things like renting equipment and having it delivered to the job site, initial material costs, pulling permits, etc. could all fall into the mobilization category. But, generally, what falls under mobilization and how those costs will be paid will be negotiable. Meaning, mobilization costs (and how they're paid) can vary quite a bit from job to job. Often, it will be paid as you indicate above - as one payable chunk at the start of the job. However, it's also possible for a contract to call for mobilization costs to be paid at the first progress billing, or even for those costs to be spread out and allocated to progress billings throughout the job. Ultimately, it might be helpful to go back through the contract for work to determine how mobilization costs should be classified, billed, and paid. But, if the contract is silent as to how mobilization costs will be dealt with, it's possible that the party seeking to recoup these costs may have to eat them for a while. For more discussion on mobilization:Construction Mobilization | How to Manage Mobilization Costs. For more on AIA documents: (1) Subcontractor’s Guide to the AIA G702 Application and Certificate for Payment; (2) Subcontractor’s Guide to the AIA G701 Change Order; and (3) How AIA Pay Applications in Construction Work.
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