Project Management 101
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Weston & Sampson · AEC LEAD
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Module 1 · Week 3 · Interactive Lesson

Set Up the Forecast

PROJECT MANAGEMENT 101 AT WESTON & SAMPSON

MODULE 1 · WEEK 3

Set Up the Forecast

THE PROBLEM

Millbrook scored 80 on the Go/No-Go form, so it is a Go. The Marketing Lead and the Technical Lead are named, and the opportunity is opened in Deltek Vantagepoint at the Proposal stage.

After the record is opened and kept current, how many weeks of work does the team's revenue projection show?

What is given

Projected Gross Revenue
$250,000, from the bottom-up estimate
Other direct costs
$40,000, the specialty stormwater subconsultant, at cost
Markup on that cost
$6,000, which is 15 percent
Win probability at the Go decision
20 percent
Existing backlog, labor only
$126,000 of Net Labor Revenue under contract
The team's weekly rate
$18,000 of Net Labor Revenue a week

Round dollars to the whole dollar and weeks to one decimal.

Step 1Opening the record and fixing the revenue line

Written Lesson, Sections 1.3.3.2 and 1.3.4

The opportunity record carries Projected Gross Revenue and Estimated Net Labor Revenue as two separate fields. The second is the revenue our firm estimates from its own staff alone. It excludes other direct costs and any markup on them.

Millbrook RFP 26-014 · Project Requirements I.5, TAB 7, Specified Supplement Information

Location of firm(s) and team members in proximity to Millbrook.

Provide an estimated level of effort for each phase of the Scope of Work, expressed in staff-hours by labor classification, and identify which tasks the proposer intends to perform through a subconsultant or an outside laboratory. Do not include hourly rates, unit costs, or fees. Pursuant to Section 287.055, Florida Statutes, price is not a criterion in the ranking of firms, and any submittal containing a fee will be returned for correction.

Weston & Sampson · the fee build on Millbrook
LineAmount
Projected Gross Revenue$250,000
Specialty stormwater subconsultant, at cost$40,000
Markup our firm adds, 15 percent$6,000
What the client pays for the subconsultant$46,000

Our firm keeps the $6,000 markup, and the markup is not labor revenue, so it stays out of this field.

What is the Estimated Net Labor Revenue on the record?

$

Two tries. After the second the page shows the worked solution and carries the correct value forward.

Worked solution

Take the gross, then remove the subconsultant cost and the markup on it.

$250,000 − $40,000 − $6,000 = $204,000

Subtracting only the $40,000 leaves the $6,000 markup inside the figure. Our firm earns that markup, so it is revenue, but it is not labor revenue and it is never multiplied by a win probability.

Step 2Weighted labor revenue at the Go decision

Written Lesson, Section 1.3.4

Weighted labor revenue is Estimated Net Labor Revenue multiplied by the win probability. It is what the opportunity contributes to the revenue projection as future backlog, and it is the only place a win probability is applied.

Weston & Sampson · the win probability at the Go decision

20 percent. Millbrook is a new client, Harlow Reed Engineering wrote both prior studies and is defending, and our firm holds no relationship. The Technical Lead and the Regional Manager agreed the estimate at the Go decision.

Estimated Net Labor Revenue, from Step 1This fills in when the step above is checked.

What is the weighted labor revenue at the Go decision?

$

Two tries. After the second the page shows the worked solution and carries the correct value forward.

Worked solution

Multiply by the win probability.

$204,000 × 20 percent = $40,800

The $6,000 markup is never multiplied by the probability. It is not labor revenue.

Step 3Updating the record after the client conversation

Written Lesson, Section 1.3.5

Our firm attended the pre-proposal conference and the site visit on 15 September. An opportunity that nobody updates stays in the revenue projection at its last recorded figures, so the record is updated the same week.

Millbrook RFP 26-014 · Solicitation 26-014, cover sheet
Solicitation26-014, CRA Infrastructure Improvements, Cypress Landing East (CLE) Public Utilities Renewal (TownPUR) Project, RFP (CCNA)
Notification date08 September 2026
Pre-proposal conference15 September 2026, 10:00 A.M.
Written questions close18 September 2026, 5:00 P.M.
Opening date and time29 September 2026, 2:00 P.M.

A non-mandatory pre-proposal conference will be held September 15, 2026 at 10:00 A.M. local time.

Four kinds of evidence support a change in win probability. The client named a driver our firm can solve. The client named a risk our experience removes. The client confirmed a budget range. The client said something the competing firms do not know. The conduct of the meeting itself supports none of it.

Weston & Sampson · six statements from the 15 September conference and site visit
What was said or observedDoes it qualify
The Town Engineer named repeat inundation on Palmetto Avenue North as the reason the work is funded nowYes. A driver our firm can solve.
The Town asked how a bidder would handle private seawalls on 68 waterfront propertiesYes. A risk our experience removes.
The CRA Board chair said the allocation runs through the 2027 fiscal year Yes. A budget range confirmed.
The Town Engineer said the 2024 model was never calibrated to observed tailwaterYes. Something the competing firms do not know.
Eleven firms attended the conferenceNo. Context, not evidence.
The Purchasing Manager ran the meeting to time and answered every question No. The conduct of the meeting supports nothing.
Weston & Sampson · the revised estimate

On that evidence the pursuit team moved the win probability from 20 percent to 55 percent. A win probability is a judgment, so the page supplies the new figure directly, rather than asking for it to be derived here.

Estimated Net Labor Revenue, from Step 1This fills in when the step above is checked.

What is the weighted labor revenue after the update?

$

Two tries. After the second the page shows the worked solution and carries the correct value forward.

Worked solution

The same revenue line, the new probability.

$204,000 × 55 percent = $112,200

Four statements qualified and two did not. The two that did not are the ones a pursuit team most often mistakes for progress.

Step 4Reading the revenue projection

Written Lesson, Section 1.3.4.1

The revenue projection adds existing backlog to future backlog and divides by what the team earns in a week. Both figures are labor only, so the comparison is like for like.

Weston & Sampson · the team, the figures Written Lesson 1.3 works

A three person team earns about $18,000 of Net Labor Revenue in a week.

The team currently holds $126,000 of existing backlog, the Net Labor Revenue remaining on work under contract.

Weighted labor revenue, from Step 3This fills in when the step above is checked.

How many weeks of work does the projection show?

weeks

Two tries. After the second the page shows the worked solution and carries the correct value forward.

Worked solution

Convert each piece to weeks, then add.

Existing backlog: $126,000 ÷ $18,000 = 7.0 weeks

Future backlog: $112,200 ÷ $18,000 = 6.2 weeks

Total = 13.2 weeks

At the Go decision the same projection read 7.0 + 2.3 = 9.3 weeks.

The projection

Net Labor Revenuenot yet
At 20 percentnot yet
At 55 percentnot yet
Weeks of worknot yet

Thirteen and a fifth weeks. Seven of them are under contract. The other 6.2 rest on a 55 percent estimate that one person entered in Deltek Vantagepoint.

That is why the record is updated every month and at every stage change. An opportunity nobody touches keeps reporting weeks of work that may never arrive.

The takeaway

Weighted labor revenue is Estimated Net Labor Revenue multiplied by the win probability. Nothing else is multiplied by it, and the markup never is.

A revenue projection is only as good as the last person who opened the record.