The definitive resource on the civil engineering industry

Firm benchmarks

Compare operating measures and define the questions behind each benchmark.

A finance director described unusually high backlog as a possible capacity or scheduling concern. The same director described checking labor multipliers, staffing and overhead against benchmarks after the firm grew. Questions for your finance lead: does the comparison still fit the firm's size? Does the backlog raise a delivery-capacity question?

Owner compensation

Review compensation as part of firm economics, ownership responsibilities and succession planning.

For contracts where FAR compensation cost principles apply, questions for a government-contract CPA and qualified counsel include: what work does the compensation pay for? What established plan or consistently followed practice supports it? How are owner distributions distinguished from compensation charged as contract cost? What additional review applies to family members or prospective substantial owners? First, have those professionals confirm which rules apply to the contract.

Industry trends

Track changes in client demand, project delivery and the business environment.

Owners need to translate policy and technology signals into staffing, project selection and capital planning. Public indicators can show where work is funded or where labor demand is changing, but they do not establish that a particular firm will win work or that a project will proceed.

M&A and valuation

Explore valuation concepts, acquisition structures and the information owners may need to assess a transaction.

A firm president questioned whether incoming employee owners could or would borrow enough to buy ownership. He expected incumbent owners to help fund the transition through company profits. He also described a strategic talent need as a possible reason for an acquisition premium. Questions for a qualified valuation professional and transaction adviser: how would an internal purchase be funded? What specific need would an outside buyer be trying to fill?

Pricing and winning work

Consider fee development, proposal decisions and how firms pursue suitable projects.

A firm president described preparing a fresh estimate for each project, with historical performance used as a check. He also described practice leads working with project managers on business development. Questions for your estimating and pursuit leads: where is the project-specific estimate? What does the historical comparison reveal? Which technical leader owns the pursuit?

Hiring and retention

Examine workforce planning, leadership development and retention practices.

A CFO described tracking voluntary turnover and investigating causes when results trailed industry comparisons. Separately, a firm president described needing communication infrastructure beyond informal conversations as offices multiplied. Questions for your people lead and office leaders: what warrants a closer look at departures? How do people across offices receive the information they need?

Owner's quarterly outlook

Use a recurring review to consider backlog, staffing, cash flow, client mix and priorities.

A firm CEO identified cash flow as the central challenge accompanying growth. A finance director in a separate case study described monitoring collection time as a continuing financial-health measure. Questions for your CFO or CPA: what does the collection trend show? What cash-flow questions accompany the growth plan?

Guides, checklists, Q&A and more

Supporting material for owners and their teams.