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Glossary · Term 001

Backlog

Backlog is the contracted or authorized professional work a civil engineering firm has not yet completed.

Seven areas buyers and successors review in a civil engineering firm, from clean financials to a clear ownership path.
Defensible backlog is the second of seven areas a buyer or successor reviews.

Definition

Backlog is the remaining fee value of work a firm has been hired or authorized to perform, based on the firm’s stated tracking rules. It can include signed agreements, approved task orders, or other authorized assignments, with unperformed work deducted as it is completed or otherwise removed. Firms differ on whether they count the full contract value, only funded amounts, options, or work awaiting a notice to proceed. They may report backlog by project, client, service line, or expected delivery period. Owners use it to consider staffing, workload, and expected billings, but the total depends on scope, funding, client decisions, schedule, and the likelihood that work proceeds. Backlog is not revenue already earned, cash collected, or a guarantee of future income. It is also distinct from a sales pipeline, which includes potential work not yet awarded. For a practical review, see how to read an engineering firm backlog report and what backlog tells an engineering firm owner.

How owners use it

  • Group remaining authorized fees by project and expected work period to compare demand with available staff capacity.
  • Compare backlog by client or service line to understand where future work is concentrated.
  • Example: A project has $300,000 in authorized fees and $110,000 of completed work, so remaining backlog is $300,000 - $110,000 = $190,000.
  • Review whether amounts depend on funding, task orders, or client approvals before using backlog in forecasts.
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