Here in CA our Doug Firs are very sensistive to such conditions/damage.
What was the time from the construction damage to the time you were called out to inspect the tree?
5% dead and thinning canopy is not too great but with the past history of cut roots, compaction etc it could very well be that the tree is on it's way out... You need to determine if the damage is too great to make it worthwhile to try to 'save' it.
I have had great success with several products mixed together.
These are mixed in solution and injected into the growing zone along with mulching.
Azomite rock powder, Compost tea, Sea Kelp, Promote, benifical micro-organisms.
You as the Arborist need to determine if the tree is past the point of no return.
Soil compaction is a major issue. With that not addressed no amount of 'snake oil' will do any good. Cut roots soil compaction alone may doom the tree to decline and or whole tree failure no matter what you do.
Each species of tree is different and they react and grow differently according to their geographical location.
Seek LOCAL expert advice, your ag office, Master gardeners program, instructors from the local Jr. colleges, Your local Dept. of Forestry Registered Professional Forester.
These resources are valuable becouse there is species specific information that may help you to avoid going through alot of time and trouble diagnosing and treating problems.
Back up what ever you say to the client with written documentation so they know that YOU ARE THE ANSWER TO ALL THEIR TREE NEEDS. not just another guy shooting their mouth off.
Frans