How Much is Mobilization Cost in Construction?

If you are going to start a construction project, then believe us, you need to know about Mobilization costs in construction. This can help you initiate your projects with proper guidelines. Starting your residential, commercial, or industrial project with mobilization is the best way to prevent unexpected scenarios. But the main question that arises here is how much does it cost? First, you need to know that the cost varies due to the size of the projects. But, in this guide, you will get to know rough estimates for every type of construction project. 

Do you know if site preparation and administrative expenses can be covered by mobilization costs? To avoid financial issues, it is important for construction companies to plan well! So that they efficiently handle the project budget from the beginning of the project. However, it is vital to understand every factor affecting the mobilization cost in construction. If you are not an expert in that, you can hire reliable estimators to manage your construction estimates from the beginning. 

DO YOU WANT TO GET FAMILIAR WITH THE WORLD OF CONSTRUCTION PROJECT PLANNING? READ OUR ARTICLE TO UNDERSTAND MOBILIZATION COSTS IN CONSTRUCTION FOR A STEADY START! LET’S DIVE INTO IT!

The Pertinence of Mobilization Cost in Construction

Mobilization in construction is the process of collecting resources. Everything is covered in it, from human requirements to material. This stage is the first step to begin the construction work. It is used to cover the following things!

• Heavy machinery like excavators, cranes, and bulldozers. This phase covers the cost of transporting these big machines.
• Second, the cost of transporting construction materials like concrete, steel, and lumber.
• It also covers the cost of setting up temporary offices, storage units, and worker accommodations.
• The cost of clearing and grading the land, and setting up access roads.

Detailed Explanation of Mobilization Components

All the components’ costs depend on the construction project’s size, complexity, and location!

1. Machinery Transportation Expenses

• Loading and Unloading: The expenses of loading machinery and then unloading them on the construction site!
• Transport Fees: The suppliers take their fees for transporting heavy machinery.
• Approval cost: You have to get approvals for transporting heavy machinery from one site to the other. That is why you have to pay permit fees if needed.

2. Labor Costs

The cost of labor can be categorized into two categories:

• Skilled Labor: The expenses of more skilled labor are higher due to their experience and the challenging requirements of the job.
• General Labor: The expenses of those laborers who work for site prep and setup.

3. Expenses of Delivering Materials

• Freight Charges: The expenses of transporting materials from the supplier’s site to your site.
• Handling Fees: Costs for unloading and storing materials on-site.

4. Temporary Facilities Setup

• Office Trailers: The cost of setting up temporary office spaces.
• Storage Units: Secure storage for tools, materials, and equipment.

5. Site Preparation Costs

• Land Clearing: Did you know that a significant cost covers the removal of vegetation, debris, and obstacles before starting construction? That is why its cost is also added to the overall estimation. 
• Grading: Labors have to work to prepare the construction ground. The cost of grading along with the labor wages are also added.

Rough Cost Estimation of Mobilization Expense

We have discussed rough cost estimation for residential, commercial, and industrial projects below. It will give you a general idea about the mobilization cost in construction. 

1. Residential Projects

Residential projects are small and have fewer complexities, so their mobilization cost is less.

• For Single-Family Home= Range: $5,500 – $16,000
• Multi-Family Units or Luxury Homes= Range: $16,000 – $55,000

2. Commercial Projects

Commercial buildings are huge and require extra attention to complete them successfully!

• Small Commercial Project (Retail Store, Office Building)= Range: $21,000 – $52,000
• Large Commercial Project (Shopping Mall, High-Rise Building)= Range: $52,000 – $153,000

3. Industrial Projects

These projects are the most complex ones and bigger and require substantial mobilization

• Small Industrial Project (Warehouse, Small Manufacturing Facility)= Range: $48,000 – $100,000
• Large Industrial Project (Power Plant, Large Manufacturing Complex)= Range: $100,000 – $300,000+

 Factors Affecting Mobilization Costs

Multiple factors influence the mobilization costs, making the cost lower or higher depending on the needs of the project. Let us show you what factors affect the overall expenses!

1. It depends heavily on where the site is located. If access is difficult, then the cost of transportation and the whole setup before starting the project will be higher!
2. The larger the building, the higher the mobilization cost!
3. The type and number of equipment pieces being mobilized affect the overall cost.
4. Weather can also influence the overall cost of construction.

BY PLANNING AHEAD AND ESTIMATING THESE COSTS ACCURATELY, YOU CAN SET YOUR PROJECT UP FOR SUCCESS! SO, KNOW YOUR MOBILIZATION COST AND START WITH CONFIDENCE!

Conclusion

To sum it all up, accurate mobilization cost in construction is the best way to start your construction project. When the estimators and project managers are well-prepared, they can manage the project fully. That is why they need to learn about the factors that can affect the overall cost. When the manager starts the project with the right mobilization costs, it builds confidence among all stakeholders. However, whether you are a contractor, manager, or the building owner, closely look into the mobilization cost. It will help you complete the project within your allocated finances and time. Moreover, you can also rely on construction professionals for the right beginning of your construction projects!