A mobilisation advance is an upfront payment from the client to the contractor, made at the start of a contract so the contractor can set up the site, bring in labour and equipment and buy initial materials, and recovered later from the contractor’s running bills.
The contract fixes the size of the advance, whether it carries interest and how it is recovered, usually in instalments deducted from successive RA bills until it is fully recovered.
Contracts often ask for a bank guarantee against the advance, so the client is protected if the contractor abandons the work.
For the client’s accounts, an advance that has been paid but not yet recovered is an asset on the project, not an expense. Tracking the unrecovered balance bill by bill keeps the final account correct.
Record an advance as a payment against the contractor on the project, then see the balance still to adjust in pending payments and the contractor’s bill history. See all features.
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