Rebuilding Backlog, Accountability, and Profitability
A steel fabrication and erection company that went from $45M backlog and negative EBITDA to $185M backlog and three consecutive months of positive EBITDA.
The Challenge
The company had fallen from approximately $85M in backlog to $45M, with no cash cushion and negative EBITDA. Monthly financial reports were late and questionable. Project Managers did not feel accountable for field cost overruns. Change orders were under-managed. Leadership could not see what was actually happening on jobs.
Backlog collapse from ~$85M to $45M with declining bid win rate
Negative EBITDA and no cash cushion to absorb further erosion
Project Managers disconnected from the financial impact of field execution
Margin fade on closed jobs going undetected until it was too late to correct
Change order process leaking revenue and margin
Rebuilding Accountability Across the Business
Sobo introduced weekly cadences, project-level reporting, and an incentive program that made PMs and General Superintendents behave like owners of their job's P&L.
Weekly Business Development Review
Goals and metrics for new bids, awarded work, backlog trend, and margin quality. Backlog grew from $45M to $165M in 18 months.
PM Accountability Reviews
Weekly reviews where every PM had to know — and address — the specifics of every job. Reports built to surface margin fade early.
Margin Fade Incentive Program
Bonuses for closing jobs with no fade, penalties for fade above 2%. Started with a few eligible PMs. Ended with nearly all of them eligible.
Change Order Overhaul
New approval discipline and process to minimize cost outlay before approval. Change orders grew from $18M at 31–35% margin to $24M at 35–40% margin.
The Results
At engagement close, the company had a $185M growing backlog, adequate cash to sustain operations, and three consecutive months of positive EBITDA. A real turnaround, not a paper one.
| Metric | Before Sobo | After Sobo | ROI / Impact |
|---|---|---|---|
| Sales Backlog | $45M and declining | $185M and growing | +$140M in pipeline value |
| Bid Margins (awarded) | Low 30% | Stabilized ~35%, peaked 40% | Direct gross margin lift |
| Change Orders Approved | $18M at 31–35% | $24M at 35–40% | +$3.48M additional profit |
| EBITDA | Negative | 3 consecutive positive months | Cash position stabilized |
| PM Accountability | Disconnected from field cost | Owners of job-level P&L | Margin fade detected early |
The company did not need theory. It needed visibility, accountability, and incentives that reward closing jobs without margin fade. Once those were in place, the backlog, cash, and EBITDA followed.
Ready to fix what's actually costing you money?
Run the diagnostic. See where growth is leaking. Then decide.
Free diagnostic plus a $1,000 credit toward your matched expert.
Sobo Assistant
Ask me anything about Sobo
👋 Hi! I'm here to help.
Ask me about Sobo's services, pricing, or how fractional consulting works.