New contract mobilisation cost checklist

Winning the contract is when the cash leaves

A new contract feels like the moment the money arrives. In cash terms it is the opposite: it is the moment money starts leaving — on staff, stock, equipment and setup — weeks or months before the client pays a penny. This gap between spending to deliver and being paid for it is mobilisation cost, and underestimating it is a classic way for a growing, profitable business to run out of cash.

This checklist lists every upfront cost so you can total them, add the pay gap, and size the working capital you need to deliver the contract without straining the rest of the business. Do this before you sign, while you can still negotiate terms.

Group 1 — People and labour

Usually the largest mobilisation cost, and it lands before the first invoice clears:

• New hires or subcontractors — recruitment, onboarding, and the wages or fees you pay before the client pays you.
• Training and certification required to deliver the work.
• Redeployed staff — the cost of pulling existing people off other revenue while they mobilise this contract.
• Travel, accommodation and subsistence for the early phase.

Be honest about the lag: if you run weekly or monthly payroll but invoice on 30-day terms, you may fund several pay runs before any cash comes back.

Groups 2 and 3 — Materials and equipment

Stock and materials. List everything you must buy or hold to start:

• Raw materials or finished goods for the first phase.
• Supplier deposits or upfront payments — many suppliers want money before you have been paid.
• Consumables and packaging.
• Buffer stock so a supply hiccup doesn't stall delivery.

Equipment and assets. Capture tools, machinery, vehicles or technology the contract requires. Where these are durable, asset finance can spread the cost over their working life rather than draining cash on day one — keeping your working capital free for the labour and stock that asset finance won't cover.

Groups 4 and 5 — Setup, compliance and the pay gap

Setup and compliance. The easily forgotten costs that still have to be paid:

• Additional insurance cover the contract demands.
• Bonds, guarantees or retentions the client requires.
• Premises, IT, software licences or site setup.
• Legal and professional fees on the contract itself.

The payment gap. Now the critical step: lay out a simple timeline of money out (the totals above, by week) against money in (when the contract actually pays, allowing for its payment terms and any retention held back). The deepest point of that gap is the working capital the contract needs. Size it precisely with the working capital calculator.

Fund the gap deliberately

Once you know the number, fund it on purpose rather than from the float that keeps the rest of the business running. The right product depends on the shape of the gap:

• A short-term business loan suits a defined mobilisation cost with a clear repayment from contract income.
• A revolving facility suits staged or uncertain costs you draw on as mobilisation unfolds.
• Invoice finance shortens the wait once you start billing — model it with the invoice finance calculator.

Because Credicorp lends to the limited company with no personal guarantee, taking a contract need not put your personal assets on the line. Check the repayment lands after the contract pays with the affordability calculator. This is general guidance, not financial advice.