How Do You Protect Your Construction Backlog?
You’re busy now. But look at the calendar three months out. Is it full, or is it one big job and a lot of hope?
Backlog is the work you’ve signed but haven’t built yet. It’s your early warning system. This page shows a contractor how to read it and keep it from falling apart.
Dr. Paul Borosky, Business Consultant, has helped 1,000+ owners see trouble coming before it hit the bank account.
Talk to Dr. PaulCall or text (321) 948-9588.
Last Updated: November 2026
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Got a minute? Doctor Owl’s answer and the 3 steps below will do. Got ten? In Dr. Paul’s Fabled Forest Business School Series, Bella feels busy until Chuck shows her that one client makes up most of her signed work. The example comes after the trend.
- Add up all the work you’ve signed but not built yet.
- Divide it by what you usually build in a month. That’s your backlog in months.
- Circle any single client that’s more than a third of that number.
How Did Bella Find Out Her Backlog Was Thinner Than It Looked?
Bella felt busy. The crew was working, the phone was ringing. Then Chuck put the numbers on one page.
Doctor Owl asked, “Is this a fire, or a foundation?” One client holding most of the backlog wasn’t a fire yet. It could become one fast. They used Dr. Paul’s Organize-Plan-Grow™ Strategy.
- Organize. Chuck added up the signed work. About seven months. But the bear family’s lodge expansion made up more than half of it.
- Plan. Bella set a rule: keep bidding every week, even when busy, and aim for no single client being more than a third of the backlog.
- Grow. Every month, Chuck reports two numbers: backlog in months, and the biggest client’s share.
When the bears pushed their second phase back a season, Bella already had three other jobs signed.
What’s Happening to Contractor Backlogs?
Associated Builders and Contractors tracks backlog every month. Its Construction Backlog Indicator was 8.8 months in June 2026.
ABC has also found a big gap by type of work. In May 2026, contractors doing data center work reported about 11.6 months of backlog, compared with 8.6 months for those who weren’t. Averages hide a lot.
Source: Associated Builders and Contractors, Construction Backlog Indicator, via BD+C (May 2026).
What Is Your Backlog Telling You?
Your backlog tells you what next quarter looks like, long before your revenue does. A shrinking number is a reason to sell harder now.
Where the backlog comes from matters too. One big client can make you look safe until the day they pause.
How Do You Keep Your Backlog Steady?
- Measure it in months. Signed work divided by your monthly output.
- Check it monthly. Same day each month, so you see the trend.
- Keep bidding when you’re busy. The time to fill next quarter is this quarter.
- Watch client concentration. Aim for no client being most of your signed work.
- Follow up on finished jobs. Happy clients are the fastest source of new backlog.
What Does a Concentrated Backlog Look Like?
Illustration only. Round numbers, not a real company.
Say you have seven months of signed work, and one client is four of those months. If that client delays, you suddenly have three months, not seven. Spreading the same seven months across four or five clients makes one delay a bump instead of a crisis.
Worried one client is too big? The QBP lesson on contractor customer concentration goes deeper. Want to see how much work you can take on? Read how big a job a contractor should take. Plan your pipeline in the construction business plan template.
Want Help Reading Your Backlog?
Bring your signed jobs list to a free 15-minute call with Dr. Paul. You leave knowing your backlog in months and your biggest risk, and what more help would cost if you want it.
Or call or text (321) 948-9588.
What Do Contractors Ask About Backlog?
What’s a good backlog?
It depends on your trade and size. Watch your own trend. Shrinking month after month is the warning.
Should I count bids I haven’t won?
No. Backlog is signed work only. Track bids separately.
How do I sell when I’m too busy?
Block one hour a week for follow-ups and bids. It’s the cheapest insurance you’ll buy.
About the Author
Dr. Paul Borosky, DBA, MBA, helps contractors keep their pipeline steady. His clients are in all 50 states and Canada.
Sources
- Associated Builders and Contractors, Construction Backlog Indicator (June 2026 reading).