Backlog Management · How Much Work · Construction Growth · Cash Flow Planning
Backlog · Construction Growth · Bid Decision · Cash Flow · Bonding Capacity
Construction Backlog
Management.
Backlog is how much work you have under contract that hasn't been completed yet. Too little backlog and revenue is uncertain. Too much backlog and cash flow, bonding capacity, and crew management all strain simultaneously. Managing backlog deliberately — knowing your ideal range and making bid decisions based on it — is one of the most important financial disciplines in construction.
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SPM vs. Other CFO Firms
Most CFO Firms Serving This Trade
- High revenue minimums — most won't serve under $5M
- Advisory only — no bookkeeping, no implementation
- No job costing setup or ControlQore management
- No monthly WIP as standard deliverable
- No pricing published — discovery call required
- No vetted partner network for bonding, lending, or liens
- No prevailing wage specialty
The Construction CFO — SPM
- Serves $1M–$12M — starts at $1,900/month
- Full implementation — bookkeeping, job costing, CFO advisory
- ControlQore setup and managed for you every month
- Monthly WIP standard in Executive tier
- Full pricing published — no discovery call to find out costs
- Vetted partners for bonding, lending, lien services, payroll
- Prevailing wage and Davis-Bacon specialty
What We See in This Business
01
You Don't Know What Your Backlog Is Right Now
Most subcontractors can describe their backlog loosely — 'we have about 6 months of work.' Very few can give a precise dollar amount of remaining contract value on active and signed projects. Without a precise backlog number, bid decisions are made on feel rather than financial analysis.
02
You're Bidding When You Shouldn't Be
Taking on too much work simultaneously strains working capital, crew capacity, and management bandwidth. Every project gets less attention. Quality suffers. Cash flow from multiple simultaneous mobilizations strains even healthy businesses. Knowing when to slow down bidding based on backlog position is as important as knowing when to pursue work aggressively.
03
Your Backlog Affects Your Bonding Program
Sureties look at backlog when evaluating bonding requests — specifically, the relationship between backlog and working capital. A large backlog relative to working capital can constrain bonding capacity even when individual project metrics look fine. Managing backlog to support the bonding program requires knowing the number precisely.
How SPM Fixes It
Calculating and Tracking Backlog
Backlog equals total remaining contract value on all signed contracts — original contract value plus approved change orders, minus revenue recognized to date. This number lives in your WIP schedule. SPM calculates and reports backlog monthly for all clients as part of the WIP reporting process. Executive clients see backlog position alongside their monthly cash flow forecast so the two are managed together.
What Healthy Backlog Looks Like by Revenue Range
For most commercial subcontractors, 3–6 months of backlog is a healthy range. Under 2 months means revenue uncertainty and aggressive bidding pressure. Over 9 months means crew strain, working capital pressure, and bonding constraints. The right range depends on your trade, project duration, and working capital position. SPM tracks backlog against these benchmarks monthly.
Using Backlog to Make Bid Decisions
Executive clients get backlog position as part of every pre-bid financial analysis — current backlog, projected cash flow impact of the new project, working capital requirement, and bonding capacity impact. The bid decision gets a financial foundation. Taking work that would push backlog to 10 months when working capital supports 6 months of backlog creates financial stress that shows up 4–6 months later.
Service Tiers
Tier 01
Core Financial
Starts at $1,900 / month
- ControlQore setup and management
- Job costing aligned to your estimate structure
- Cost-to-complete tracking — updated monthly
- Full-service bookkeeping — minimum 30 min/week
- Vendor payments via ACH (you approve, we initiate)
- Accounts receivable management
- Bank reconciliations and transaction matching
- Controllership
- 1 monthly CFO meeting
- 60-day onboarding — books migrated to last taxable year
Most Popular
Tier 02
Executive Financial
Starts at $2,900 / month
- Everything in Core Financial
- Monthly WIP schedule — delivered every month, standard
- 13-week cash flow forecasting
- CEO Report — monthly financial dashboard
- 3 CFO advisory meetings per month
- Strategic accountability and actionable to-dos
- Direct access to Josh Luebker
Pricing by Revenue
Revenue Range
(Last 12 Months) |
Core Financial
Monthly |
Executive Financial
Monthly |
| Under $1M | $1,900 | $2,900 |
| $1M – $3M | $2,600 | $3,600 |
| $4M – $6M | $3,800 | $5,500 |
| $7M – $9M | $5,100 | $6,900 |
| $10M – $12M | $6,100 | $8,500 |
| $13M+ | Quoted | Quoted |
Vetted Partner Network
National Lien Services
When AR gets too long, we connect you directly to our lien services partner to protect what you've earned.
Additional cost — not included in monthly fee
Payroll Integration Partners
Prevailing wage and regular payroll software partners integrated directly with ControlQore job costing.
Additional cost — not included in monthly fee
Bonding Partners
Surety relationships and bonding capacity support. We prepare the financials — our partners get you bonded.
Additional cost — not included in monthly fee
Lending Partners
Working capital lines and equipment financing through vetted lenders who understand construction.
Additional cost — not included in monthly fee
Reviewed Financials
CPA-level financial statement reviews for banking, bonding, and large contract requirements.
Additional cost — not included in monthly fee
CPA Coordination
We work alongside your existing CPA — not replacing them. Clean books and job costing make tax time easier.
Included — no extra cost
Common Questions
Straight answers.
Should signed LOIs be included in backlog?
No — backlog should only include signed contracts with defined scope and contract value. Letters of intent, verbal commitments, and work orders without executed subcontracts are not backlog. They're pipeline. Treating pipeline as backlog overstates your secured revenue position and can lead to under-bidding when you need more work than the pipeline actually delivers.
How does backlog affect bonding capacity?
Sureties look at the relationship between remaining backlog and working capital — essentially, do you have enough financial resources to complete the work you've committed to. A backlog-to-working-capital ratio above 10:1 starts to raise surety concerns. A contractor with $300K of working capital and $5M of backlog is operating at 16:1 — which most sureties consider strained. SPM tracks this ratio monthly for Executive clients.
What's included in Core Financial?
ControlQore setup, job costing aligned to your estimates, cost-to-complete tracking, full bookkeeping (minimum 30 min/week), ACH vendor payments (you approve, we initiate), AR management, bank reconciliations, transaction matching, controllership, and 1 monthly CFO meeting. Starts at $1,900/month.
What does Executive Financial add?
Everything in Core plus monthly WIP schedule, 13-week cash flow forecasting, CEO Report, and 3 CFO advisory meetings per month. Starts at $2,900/month. WIP, cash flow forecasting, and the CEO Report are Executive tier only.
Do you handle payroll?
No. We have vetted payroll software partners — including prevailing wage integrations — that connect directly with ControlQore. Those are separate engagements at additional cost.
How long does onboarding take?
60 days. We migrate your books to the start of your last taxable year, set up ControlQore, and build your job costing structure. Fully operational in two months.
What software do clients use?
ControlQore. All SPM clients run on ControlQore for job costing and WIP. We set it up and manage it — you don't have to learn it. Clients switching from QuickBooks, Sage, or other platforms migrate during onboarding.
Do you work alongside our CPA?
Yes. We work alongside your existing CPA — not replacing them. Clean books and accurate job costing make their job easier at tax time.
What happens when we grow past $12M?
We have a clear graduation path. We prepare your financials, systems, and team for the transition and connect you with the right firm for your next stage of growth.