Forecasting is one of the most powerful tools in construction management. From projecting costs and revenue to planning manpower and resources, forecasting helps contractors stay profitable, anticipate challenges, and keep projects on track. Yet despite its importance, forecasting remains a manual process for many contractors relying on spreadsheets even when they have ERP (enterprise-resource planning) or project management software.
The Reality of Construction Forecasting Today
Forecasting backlog provides insights into future workload, revenue, and cost, measured by:
- Time-Based Backlog – The months needed to complete outstanding projects.
- Cash-Value Backlog – The total expected revenue from these projects.
- Dollar-Based Backlog – The total contracted work still uncompleted.