Brent Thielman: Just if I look at it over the last five years or so, you’re forward 12 month revenue to backlog average somewhere around, call it, 1.4x, and the guidance for this year represents something quite a bit below that, just based on where your backlog was at end of September. I recognize you want to embed some conservatism to the things we can’t foresee. But just wondering, if there’s anything different about the composition of the backlog, things we had to consider just in the context of that.
Jule Smith: No. Brent, there’s really been no change in our typical project size or duration. We do have a higher percentage of our guidance on backlog now. I think you’re right about that. I think that what that really reflects is just more uncertainty as we look out into the year than we typically have had. And as we see the year unfold, usually at midyear, we update our guidance, and we’ll know a lot more about just the macro environment we’re dealing in.
Alan Palmer: Brent, just to add to that, we have — historically, if you go back for 20 years, typically, what we have on backlog that we’re going to complete in the next 12 months would represent between 60%, at the most 65% of our next 12 months’ revenue. And then we would have about 15% to 20% of what we have on backlog that’s going to be completed in more than 12 months. And that percent that we’re going to complete in more than 12 months from now is up a little bit. But what’s up significantly is that we’ve got approximately 85% of our revenue, contract revenue that we’re going to do in 2023 that we’ve got already on backlog. And that represents the highest percentage that we’ve ever had, and that’s just a reflection of how strong the market is right now.
So what we used to refer to is, we’re going to have to book and burn about 4% of our next 12 months revenue, that’s down to more like 15%. And the states have just continued to put work out there, private work is still strong, but it really comes down to how much can we complete in a 12-month period. And that’s obviously how we came with what our revenue projection is for next year. But what that does, and Jule has said this a number of times, is you have that strong of a backlog, it gives you an opportunity to work on bidding with better margins, making sure you’ve got cost contingencies in there. So you don’t have the margin compression like we had this year, and that’s the part about 2023, I think that’s very exciting for us is we can be very disciplined in our bidding and make sure that we get a reasonable margin on any project that we’ve added to backlog.
Brent Thielman: Okay. Got it. Very helpful. Just as a follow-up, based on everything you’re talking about and what we seem to be seeing in the bidding environment right now, and obviously, really, really strong. I mean, do you see the potential for any shift in what you’re willing or wanting to take on because of the profile, the bid margins just look increasingly more appealing? And would you — are you more willing to pursue projects with greater size and scale to leverage people and equipment?
