CLIENT
An established union concrete subcontractor won a $2.3M bridge deck project in Norwalk, Connecticut.
The scope included concrete deck reconstruction, expansion joints, lightweight fill, partial-depth patching, and related concrete work.
CHALLENGE
More Than $1M Needed Before the First Payment
The project required significant costs upfront, including union payroll, two large material payments, weekly equipment rentals, and an equipment delivery deposit.
Under the original contract terms, pay applications would be submitted monthly, with payment due 45 days after approval.
When Mobilization Funding mapped out the project’s expected costs and collections, the forecast showed that roughly $1.1M would need to go out before the first pay application was collected.
Tying up that much company cash in one project could have made it harder to meet other business needs or pursue additional work.
SOLUTION
Faster Payment Terms and $1M in Project Funding
Mobilization Funding encouraged the company to use the cash-flow forecast in its conversation with the project owner.
The company negotiated payment within 15 days in exchange for a 2% discount. That change reduced the projected upfront cash need from roughly $1.1M to approximately $423,000, a reduction of nearly 62%.
With the faster payment schedule in place, Mobilization Funding structured $1M in project funding. The funding helped cover:
- Union labor
- Large material payments
- Weekly equipment rentals
- The upfront equipment delivery deposit
RESULTS
Preserved Cash and Greater Confidence to Grow
✓ Reduced the projected upfront cash gap by nearly 62%
✓ Moved forward without draining operating cash
✓ Covered labor, material, and equipment costs as the work progressed
✓ Began reviewing a $17M interchange contract with Mobilization Funding as a potential capital partner
Better Cash-Flow Planning Can Change the Funding Plan
The funding helped cover the immediate project costs, but the cash-flow forecast created value before the first dollar was advanced.
By identifying the gap early, the company was able to negotiate faster payment terms, reduce the amount of cash needed upfront, and structure funding around the project’s actual payment schedule.
