Key Performance Indicators With Construction – Backlog and Pipeline of Work (Part 2 of 3)

Minimum Bottom Line Profit Should Average 9.4%!
For Trades & Subcontractors, at Least 11%
After Income Taxes Are Paid!

Backlog and the associated pipeline of work is the second group of key performance indicators for a contractor. With construction, understanding the volume of existing contracts, i.e. backlog, aids the management team in setting production goals in the near term. In conjunction with pipeline information, a contractor can quickly ascertain future financial performance. In order to do this, the contractor must create a set of key performance indicators that identify existing dollar value of signed contracts not yet started along with their respective time constraints. Furthermore, the pipeline of potential work is stratified in groups and historical performance guides the management team with what to expect for future work beyond the near term.

This is the second part of a three part series explaining the various key performance indicators used by contractors. Backlog of work refers

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