Quick wins for a faster PC:
Clear out junk files and repair common Windows errorsFree Scan →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Repair Windows errors before they cause bigger problemsFix Now →Some links on this page are affiliate links: if you buy through them we may earn a commission, at no extra cost to you.
A large backlog is useful only when you know what is included, how funded and enforceable it is, when it can become revenue, and what margin remains after delivery costs. Evaluate a contractor’s backlog by testing its definition, contract status, funding, conversion schedule, movement, project economics, concentration and execution capacity. Backlog is a company-defined operating measure—not a standardized promise of future profit—so compare companies only after normalizing those details.
Start with the company’s definition of backlog
Backlog generally describes the value of work a contractor expects to perform but has not yet recognized as revenue. Public construction companies do not calculate it identically. One issuer may include only executed contracts with a notice to proceed (NTP); another may include customer awards awaiting a signed engineering, procurement and construction (EPC) contract; a third may include estimated maintenance work or awards management believes have no major remaining uncertainty.
As an Amazon Associate I earn from qualifying purchases.
Read the backlog footnote, management discussion and any glossary before looking at the balance. Record the inclusion threshold in your notes and check whether the company changed that definition from the prior year. A balance that rises because the issuer broadened its definition is not directly comparable with a balance calculated under the old rule.
Contract stages that may appear in a backlog number
| Stage | What it usually means | Questions to ask |
|---|---|---|
| Executed contract | The customer and contractor have signed an enforceable agreement with defined scope and consideration. | Are termination rights broad? Is the price fixed, reimbursable or subject to unresolved allowances? |
| Notice to proceed or letter to proceed | The customer has authorized work to begin, often after contract execution or financial close. | Has funding been appropriated and released? Are permits, bonds or design approvals still outstanding? |
| Customer award, contract unsigned | The customer selected the contractor or agreed a price, but definitive documents or NTP may be pending. | What conditions must be met before the award becomes executable, and how often have similar awards failed to start? |
| Conditional or estimated work | Options, renewals, task orders, maintenance estimates or other value management believes is sufficiently certain. | Is the amount funded, optional, historically recurring or merely an internal estimate? |
Tutor Perini explains that its backlog can include some awards without an executed contract or NTP when no major uncertainties remain, citing adequate funding or a notice of intent to award as examples. Argan describes a narrower concept: expected revenue from remaining work where scope is sufficiently defined and contract value can be reasonably estimated, typically including value when it receives an NTP. Those are issuer-specific policies, not industry rules.
#1 Best Overall
- Valued Carpenter Pencil Set: You will get 2 pcs solid carpenter pencils with 26 piece 2.8 mm refills, 1 replaceable sharpener, 1 plastic storage box.The complete carpenter pencils combination allows you to finish your work faster and more easily
- Deep Hole Marker Pencil: The deep-hole construction pencils adopts 45mm elongated tip design, which is more convenient to mark in the small hole or in other tight areas that other carpenter markers cannot reach
- Carpenter Pencils with Sharpener: The sharpener is screwed into the top of the work pencil, which won't get lost either. Built-in pencil sharpener that keep the lead with pointed and smooth to Improves line of sight in fine work
- Stronger Solid Lead: This work pencil is matched with a 2.8 mm thick lead , which is much thicker and stronger during the drawing process of construction work, it will not break or damage easily
- Marks on Various Surfaces: 3 colors solid construction pencil can marks on various surfaces,such as metal, plastic, wood, paper etc. Ideals for woodworkers, contractors, craftsmen, builders, merchants and masons
Separate firm, funded work from conditional value
Do not treat every dollar in a headline backlog as equally dependable. Ask the company to split the total into categories such as signed backlog, awarded backlog, options, renewals and estimated work. Some infrastructure providers separately disclose “Signed Backlog,” “Awarded Backlog,” “Next 12 Months Backlog” and “Total Backlog.” Signed backlog represents work under existing contracts with defined scope and enforceable consideration. Awarded backlog may include a customer-agreed price while the EPC agreement remains unsigned or the NTP is pending.
Build a firmness ladder
- Highest certainty: executed, enforceable contract; defined scope; current funding; NTP issued or work already mobilized.
- Intermediate certainty: customer award with agreed price, but signature, NTP, financing, permits or other conditions remain.
- Lowest certainty: options, renewals, indefinite-delivery estimates or management estimates that depend on future appropriations or customer decisions.
Use the company’s own labels in your analysis. Calling an “awarded” amount “signed” overstates certainty, while excluding it entirely may understate the opportunity. Present the categories separately and explain the conditions attached to each.
Verify funding and the customer’s ability to proceed
A signed contract can still produce delayed or reduced revenue if the customer lacks available funds. Review disclosures for appropriations, financial close, grants, bond proceeds, owner financing and payment security. For public-sector work, distinguish an authorization to procure from money legally available for construction. For private owners, examine financing contingencies, lender commitments and the customer’s credit quality.
Ask whether the contractor can suspend work for nonpayment, whether retainage is material, and whether disputed change orders are being carried as expected value. A backlog number that depends on future appropriations should not be valued like funded work scheduled to start immediately.
Study the timing profile, not only the total
Backlog becomes useful for forecasting only when you know the expected conversion schedule. Look for a “next 12 months” amount, annual revenue-recognition estimates or a project-by-project schedule. Compare the near-term portion with the total:
Near-term conversion rate = expected revenue in the next 12 months ÷ reported total backlog.
Rank #2
- Ergonomically Designed: Work in tight areas with a compact design that gets into tough spots
- Both tools are designed to fit into difficult to reach spaces
- Complete a wide range of applications with a high-performance motor that delivers up to 300 UWO, and an impact driver delivering up to 1,400 in-lbs of torque
- Both the DEWALT impact driver and drill driver feature integrated LED work lights with a convenient 20-second delay, ensuring enhanced visibility in dimly lit or challenging work areas
- One-Handed Loading - Keep one hand free with a 1/4 in. hex chuck that accepts 1 in. bit tips
This is a planning ratio, not an industry benchmark. A low ratio may reflect long civil projects rather than weak demand; a high ratio can create execution pressure if labor, equipment or subcontractors are constrained.
Use project duration supplied by the issuer
Tutor Perini states that most projects in its Civil segment backlog typically convert to revenue over three to five years, while projects in its Building and Specialty Contractors segments typically convert over one to three years. Those ranges describe that company’s segments and should not be generalized to every contractor or project type.
Map each major project to an expected start, completion and revenue curve. Then test whether the company has enough supervisors, craft labor, equipment, bonding capacity and subcontractor commitments to deliver the scheduled volume. A backlog concentrated in projects that have not mobilized may provide less near-term coverage than its size suggests.
Reconcile how backlog changed during the period
The ending balance is the result of several flows. Reconstruct them rather than relying on a year-over-year percentage:
Free tools Windows power users keep installed
One-click scans. No signup required.
| Bridge item | What to investigate |
|---|---|
| Beginning backlog | Was it calculated under the same definition as the current balance? |
| New awards | How much was signed, funded and started versus merely awarded? |
| Change orders and estimate revisions | Did value rise because of approved scope, claims, inflation allowances or a revised total contract estimate? |
| Revenue recognized | How much backlog converted to revenue, and did conversion match the prior forecast? |
| Cancellations, terminations and lapses | Were projects removed, delayed or reduced, and why? |
| Ending backlog | Does the bridge mathematically reconcile to the reported figure? |
Tutor Perini describes new awards as the original price of projects added plus subsequent changes to estimated total contract price. That treatment means an increase in “new awards” may include revisions to existing jobs, not only newly won contracts. Separate genuine wins from scope growth and estimate changes when assessing demand.
Test whether backlog can produce profit
Backlog is usually reported as expected revenue, not expected gross profit. A growing balance can coexist with losses when costs rise faster than contract prices or when estimates are too optimistic.
Rank #3
- 【Great Compatibility】This Katerk 1/4 inch hex shank bit holder is specifically designed for 1/4 inch hex shank drill bits. It's compatible with most 1/4 fast hex handles, hex sockets, various electric screwdrivers, and handheld screwdrivers. The bit holder makes it a valuable addition for any handyman.
- 【Secure and Safe】Built with a secure backup nut design, each drill bit holder securely locks onto your bits, ensuring they stay firmly in place. Additionally, our bit holder incorporates a high-quality steel ball rolling design that holds up to several kilograms of weight, ensuring your various drill bits don't fall off.
- 【Easy One-Handed Operation】The bit holder for impact driver allows you to change bits single-handedly, simplifying your workflow. Its multi-color design further allows for quick identification of the drill bit you need.
- 【Compact and Convenient】Thanks to its compact size, this 1/4 inch bit holder is easy to carry around. The bit holder allows for easy attachment to various tools, making this a convenient addition to your construction accessories. The Katerk bit holder is cast from high-quality alloy material, promising a long product lifespan. Despite its rugged strength, the bit holder remains lightweight, making it portable.
- 【Cool Christmas Gift For Men Stocking Stuffers】 This screwdriver bit holder, driver bit holder, impact bit holder, can be given as a gift to your loved one, especially for anyone involved in construction or electrical work. It's a must-have for stocking stuffers for men and women, tools gifts for dad, tech gadgets for men, gifts for dad, gifts for him, gifts for husband, gifts for boyfriend, cool gadgets for men, and cool gifts for dad.
Check contract economics
- Contract type: Fixed-price work transfers more cost-overrun risk to the contractor; cost-plus or reimbursable arrangements may provide different margin and volume characteristics.
- Cost-to-complete estimates: Compare current estimates with prior periods and investigate sudden margin reductions, unfavorable adjustments or large loss provisions.
- Change orders and claims: Determine whether revenue or margin depends on owner approval, arbitration or litigation. Treat disputed amounts conservatively.
- Schedule exposure: Delays can increase field overhead, financing costs, liquidated damages and subcontractor claims.
- Completion penalties and warranties: Identify liquidated damages, performance guarantees, warranty reserves and other obligations that can consume expected margin.
Argan expressly warns that backlog may not be realized or profitable. That warning is material: the reported amount says what revenue management expects from remaining work, not what cash or earnings shareholders will receive.
Adjust for pass-through and third-party costs
Some companies report backlog as gross revenue even when a substantial portion will be paid to subcontractors, suppliers or other third parties. AECOM’s 2025 annual report, for example, describes backlog as gross revenue and notes that it may include significant estimated third-party or pass-through costs. Two contractors with equal backlog can therefore have very different net value added, gross margins and working-capital needs.
PC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Outdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchRead the revenue-recognition and backlog footnotes for materials, subcontracted work, joint ventures, reimbursable costs and agency arrangements. Do not subtract an assumed percentage: use the issuer’s disclosed mix or label the amount as not stated. Also distinguish backlog from remaining unsatisfied performance obligations. A company may report different totals because of unsigned awards, options, joint ventures or other company-specific treatments.
Assess concentration and execution capacity
Break the backlog into project segment, customer, geography, contract type and individual job. Concentration creates a different risk profile from a diversified book:
- A single megaproject can dominate the total and make one dispute or design change decisive.
- One government customer can expose the contractor to election cycles, appropriations and agency scheduling.
- One region can magnify weather, permitting, labor or local-market disruptions.
- Heavy fixed-price exposure can make inflation and productivity variance more damaging.
- Large subcontractor or material content can reduce the revenue that translates into contractor-controlled margin.
Compare scheduled work with bonding limits, revolver capacity, equipment availability and the company’s recent hiring or subcontracting plans. A contractor may have enough nominal backlog but lack the working capital or skilled labor to execute it on schedule.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Compare two contractors only after normalizing definitions
Use a comparison table that keeps unlike categories apart. If a value is not disclosed, mark it “not stated” and identify the filing date rather than filling the gap with an estimate.
Recommended Free Tools
Rank #4
- Long Nib and Deep Hole Marker: Our mechanical carpenter pencil with 45mm nib is designed for easy marking of deep holes or narrow areas. These construction pencils are the great choice for woodworking tools, construction tools, carpenter tools, contractor tools, wood carpentry tools and architect tools
- Extra Refills in 2 Colors for Versatile Marking: The construction mechanical pencil comes with 12 extra 2.8mm refills, including 6 red and 6 black refills. The black refill is suitable for light surfaces, while the red wax is perfect for dark surfaces. Our carpenter mechanical pencil makes sure that you'll have an ample supply for extended use
- Built-in Sharpener: Our construction pencil comes with a built-in sharpener to ensure the mechanical pencil tip is always sharp and ready for use. Never buy an extra pencil sharpener again. A great tool for any woodworker pencil, contractor pencils. The refill can easily be extended or retracted with a simple click of the pencils mechanical, allowing you to work more efficiently and accurately
- Portable Clip Design: Our deep hole construction pencil features a portable clip design, easy to carry and attach to your pocket or tool box, so that you can keep the carpenter pencils mechanical close at hand, making it a convenient tool to have on the go. Great gifts choice for carpenters
- Stronger Pencil Lead: The black refills are made of lead, sturdy and smooth. The red refills are made of wax, clear and light. These marking pencils are much thicker and stronger than normal pencils during the marking process of construction work, suitable for various surfaces, such as glasses, metal, boards, floors, walls, furniture, etc. The written marks can be easily wiped with a wet paper towel when needed
| Comparison axis | Evidence to collect | Why it matters |
|---|---|---|
| Contract status | Executed, NTP issued, awarded pending signature, options or estimated work | Measures enforceability and probability of start |
| Funding certainty | Funded appropriations, financing close, customer payment security | Indicates whether scheduled work can actually proceed |
| Conversion horizon | Next-12-month backlog, annual schedule and project duration | Shows when backlog can affect revenue |
| Composition | Segment, customer, geography, fixed-price/reimbursable mix and pass-through content | Reveals concentration and margin sensitivity |
| Backlog movement | New awards, recognized revenue, revisions, cancellations and ending balance | Distinguishes organic bookings from accounting or estimate changes |
| Execution risk | Cost-to-complete changes, delays, claims, penalties and staffing capacity | Tests whether revenue can become cash and profit |
Never rank companies by backlog-to-revenue or backlog growth alone when their inclusion thresholds differ. First restate each balance into comparable buckets—signed and funded, awarded but conditional, and estimated or optional—then analyze timing and economics.
A practical due-diligence workflow
- Locate the latest filing. Use the annual report and most recent quarterly filing; backlog is volatile, so refresh balances and schedules to the latest reporting date.
- Copy the definition verbatim into your notes. Record whether the issuer requires an executed contract, NTP, defined scope, reasonable estimate or absence of major uncertainty.
- Build the firmness ladder. Separate signed, funded work from awards awaiting signature, NTP, financing or appropriations.
- Construct the backlog bridge. Reconcile beginning backlog, additions, revisions, recognized revenue, cancellations and ending backlog.
- Map conversion by year. Identify the amount expected in the next 12 months and the longer-dated portion; compare it with segment-specific project durations.
- Stress the margin. Review contract type, cost-to-complete trends, claims, change orders, escalation clauses, penalties and warranty exposure.
- Remove misleading gross amounts. Identify pass-through materials, subcontractor costs, joint ventures and other items that inflate reported revenue without equivalent contractor margin.
- Test capacity and concentration. Check labor, subcontractor, equipment, bonding and working-capital resources against the scheduled workload and largest projects.
- Write a conditional conclusion. State which portion is firm and funded, what timing is supported, and which assumptions could prevent realization.
Illustrative filing data: Tutor Perini at December 31, 2025
Tutor Perini reported consolidated backlog of $20.6 billion at December 31, 2025, up from $18.7 billion at December 31, 2024, a 10% increase. The company estimated that approximately $6 billion, or 29%, of the December 31, 2025 balance would be recognized as revenue in 2026. These figures come from Tutor Perini’s 2025 Form 10-K and are a company-specific example, not an industry benchmark.
The same filing states that Civil projects typically convert over three to five years and Building and Specialty Contractors projects over one to three years. It also notes that backlog may differ from transaction prices allocated to remaining performance obligations in the financial-statement notes. Those qualifications show why the balance, conversion percentage and accounting performance-obligation figure should be read together rather than treated as interchangeable.
Red flags that warrant follow-up
- Backlog rises mainly through awards that lack executed contracts, NTP or identified funding.
- The company changes its definition or begins including options and estimates without presenting a comparable prior period.
- Next-year conversion falls while management continues to describe total backlog as record or strong.
- Large projects are repeatedly delayed, re-scoped, terminated or written down.
- Cost-to-complete estimates deteriorate, loss provisions increase or claims are essential to the forecast margin.
- Reported backlog contains substantial pass-through costs that obscure the contractor’s own value creation.
- One project, customer or geography represents an unusually large share of the total.
- Backlog growth outpaces hiring, bonding, liquidity or subcontractor capacity.
What backlog can—and cannot—tell you
Backlog is a forward-looking operating indicator. It can show potential revenue coverage, work visibility and the scale of a contractor’s awarded opportunities when the definition and timing are clear. It cannot guarantee that projects will start, that customers will pay, that schedules will hold or that the work will earn a profit. Company filings expressly warn that backlog may not be realized, may not represent revenue in a particular period and may fail to produce earnings.
Do these 3 things before closing this tab:
1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsThere is no established industry-wide backlog conversion rate or universal backlog definition. Treat every percentage, balance and duration as belonging to a named issuer, segment and reporting date. The strongest evaluation ends with a reconciled, funded and time-phased backlog—and an explicit account of the costs and conditions that could prevent it from becoming profitable revenue.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
