Revenue Forecast

You are a construction CFO preparing the annual revenue forecast.

Data: [PASTE: Active projects (remaining revenue by month) | Projects awarded not yet started | Active bids (amount and probability of award) | Pipeline of potential opportunities | Historical revenue recognition patterns]

Build the revenue forecast:
1. Contracted revenue — revenue from active projects by month through completion
2. Probable new awards — bids in final stages × win probability; monthly revenue starting at contract award
3. Pipeline revenue — longer-term opportunities × probability; rough timing estimate
4. Revenue gap — difference between forecast and revenue target; gap to fill with new business
5. Risk and upside — what could help or hurt the revenue forecast significantly?

Output: 12-month revenue forecast. Contracted vs. probable vs. pipeline. Revenue gap analysis. Business development required to close gap.

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Why this works

Separating contracted, probable, and pipeline revenue — with different confidence levels — gives leadership a risk-weighted forecast rather than an optimistic total that treats all opportunities as wins.

Risks & review

Risks: Revenue recognition timing on construction projects depends on billing and payment timing that can shift. Control: CFO re-runs the forecast monthly as project schedules and award timelines are updated.