CLIENT
A Virginia-based union masonry subcontractor had built itself into roughly a $12M company.
That changed after the business invested in an electrical company that went poorly, pulling cash and management attention away from its core masonry work. Revenue fell to about $4M as the company worked through the fallout.
The award of a roughly $3.8M subcontract on a large public-sector construction project gave the contractor a clear opportunity to rebuild, a chance to get back to the $12M form it had operated at before.
CHALLENGE
A Strong Award, but a Cash Flow Gap at Startup
The VA Stockton project was exactly the kind of work the contractor needed, but executing it required funding payroll before any project revenue arrived. Union crews and fringes were due weekly from the first days of mobilization, while pay applications to the general contractor took weeks to collect.
Coming off a stretched cash position, the contractor did not want to drain its remaining capital or turn to high-cost financing to bridge that gap. The company needed funding that matched the rhythm of the project rather than adding pressure to the business.
SOLUTION
A $436K Mobilization Loan
Mobilization Funding structured a project-specific mobilization loan of $436K against the VA Stockton contract. The facility provided capital to support:
- Weekly union payroll during mobilization
- Materials and equipment as the job ramped
- Project-related operating costs
Funds flowed into a dedicated account in the contractor’s name, with repayment aligned to the project’s pay-application receipts through Textura, rather than blanketing the company’s receivables. The structure bridged the timing gap at a cost of about 0.9 percent of project margin, without predatory debt or additional owner capital.
RESULTS
Funding That Kept the Project Moving
✓ Mobilized crews on schedule and kept weekly payroll funded through the early, cash-negative phase
✓ Submitted a first pay application of $352,483, with repayment structured to clear as payments are collected
✓ Protected margin on a roughly $3.8 million contract
✓ Preserved owner capital and avoided high-cost financing
✓ Put the contractor back on track toward the $12 million form it operated at before
Turning an Award Into a Comeback
By aligning capital with project execution, Mobilization Funding helped the contractor fund its anchor project and take the first step back toward full strength.
