Want to run a more profitable architecture or engineering practice? Our recent webinar - 'Empower Your Practice: How to Build Your Business Profitability' - brought together five brilliant minds from across the AEC world to share hard-won lessons from their own journey. Here are three takeaways that really stood out - plus a few tips from our CEO, Simon Berry, on how to apply them.
1. Spot Profit Leaks Early - Not at the End
Al Scott, co-founder of IF_DO Architects, opened the session with a simple but powerful point: tracking profit at the END of a project is far too late. By the time you realise you’ve gone over budget, spent too many hours, or mispriced the fee - it’s already done. The damage is done. Instead, Al’s team looks at project health regularly and proactively. They run weekly reviews of resource planning and time logged, and they use those insights to course-correct in real time. If a phase is running over, they explore whether to reallocate work, bring in help, or speak to the client about scope.
It’s not just about money. It’s about momentum. Al shared how having this ‘early warning system’ in place has helped them make better decisions - and avoid the stress of realising late in the day that the project isn’t profitable.
Simon’s Take: This is a huge mindset shift. We built Fresh Projects specifically to help you do this - see the financial health of your projects in real time and take action before it’s too late. If you’re only reviewing profit at project closeout, you’re missing the opportunity to adjust along the way.
Action tip: Set up a weekly 10-minute project review. Check time logged vs. budget, and flag anything trending off-course. It could save you thousands.
2. Communicate Your Value - Don’t Sell Yourself Short
How often have you felt that a client sees your fee as just another cost to minimise? Nick Hayhurst - founding director at Hayhurst & Co. Architects - urged us to flip that script. His advice: frame your service as a strategic investment for the client, not just an expense.
In the webinar, Nick shared how he communicates with clients who might be fee-sensitive. Instead of dwelling on hours or rates, he talks about outcomes: a well-designed building can save money during construction, boost the property’s long-term value, reduce energy bills, or improve the occupant’s well-being. These are tangible benefits that far outlast the design phase.
Another aspect of communicating value is confidence. If we as architects act apologetic about our fees, clients pick up on that. Nick’s approach is to proudly emphasise the expertise and specialised value his firm brings. This involves some education and plenty of real-world examples to back it up.
Simon’s Take: This lesson is all about mindset. Architects and engineers provide incredible value - we just need to articulate it better. Prepare a brief “value case” for your services. Shift the conversation from “cost” to “value gained,” and you set the stage to charge based on the value you create.
Action tip: Next time you draft a fee proposal, include a short section or cover letter about the value of the services.
3. Protect Your Profit: Manage Scope Creep and Get Paid for ALL You Do
Judith Stichtenoth, a director at dRMM Architects, brought in the perspective of larger projects and teams. One of her key points: on complex projects, what you don’t include in your fee calculation can hurt you.
Judith also reinforced a theme that echoed through the Q&A: scope changes and “drift” happen, and you must address them proactively. In her firm, they track changes in the project brief or client requests meticulously.
Finally, Judith stressed not to let unpaid invoices linger. She suggested treating invoice follow-up as seriously as design deliverables. At dRMM they have an admin process to regularly review accounts receivable and politely chase anything overdue.
Simon’s Take: Scope creep is the silent killer of project profitability. One of my personal mantras is “charge for changes.” If a client asks for extra meetings or additional drawings, it’s entirely fair to say, “Absolutely we can do that - we’ll just need to adjust the fee slightly to cover the extra work.”
Action tip: Implement a “scope change log” for each project and schedule a monthly 15-minute review of your outstanding invoices.
Conclusion
Talking about money, managing scope, insisting on fair pay - these can all feel a bit uncomfortable for us in the design profession. But the architects who shared their stories in our webinar proved that mastering these skills is critical to running a thriving practice.
One encouraging trend: firms are getting better at this. According to industry data, small and mid-sized practices have been improving profits in recent years - for instance, practices of 50-100 staff saw average profit growth of 16% since 2020, far outpacing some larger firms.
As the founder of Fresh Projects, my mission is to make this “business side” of practice easier and more effective. These lessons reaffirm why we built our software - to give architects and engineers simple tools to monitor project finances, forecast resources, and take the guesswork out of profitability.
Ready to boost your profitability? 👉 Book a free guided demo of Fresh Projects, and let’s explore how you can apply these principles with the right tools. Have your own profitability lessons or stories? Leave a comment or reach out - the best way we all improve is by sharing our experiences. Here’s to designing a more profitable practice!