Pricing Mobilization, Demobilization and Restart Costs

Reviewed September 7, 2026.

Moving crews, equipment and temporary facilities onto or off a project costs money. Whether those costs are separately payable depends on the contract, bid schedule and reason for the move. A lump-sum price may already include ordinary mobilization and demobilization.

Define the events that change the price

Address owner-directed shutdowns, phased work, repeated moves, termination, delayed access and suspension for nonpayment. Specify notice, supporting records, applicable rates or actual-cost treatment, and any markup. Distinguish the initial planned move from additional moves caused by a compensable event.

Maintain equipment logs, hauling invoices, labor records and the schedule showing why a move was required. Separate actual additional expense from costs already included in the contract price, and take reasonable steps to limit avoidable loss. A contractor's own default does not create an automatic right to pass all shutdown costs to the owner.

For a suspension that satisfies the Prompt Payment Act, General Business Law § 756-b(2)(b)(iv)(A) addresses schedule extensions and negotiation of documented actual remobilization costs. Verify statutory coverage and notice compliance before relying on that remedy. A written restart agreement can reduce disputes over time and compensation.

Kushnick Pallaci PLLC assists clients throughout New York with construction delay and change-order disputes. Contact 631-752-7100 or vtp@kushnicklaw.com.

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