Fresh Projects is a UK-based software platform designed for architects, engineers, and other built-environment professionals to manage financial aspects of their projects. It helps teams track fees, timesheets, expenses, billing, and overall profitability to keep projects on budget and profitable. The platform also centralises project data, streamlines administrative tasks, and offers mobile app support for easy access and updates.

1a Colinette Road

London

SW15 6QG

1a Colinette Road

London

SW15 6QG

Getting Project Fees Right

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Earlier in my career, I worked in the finance team of a large architecture and engineering firm. We had more than twenty people running accounting functions alone.

Despite that scale, the firms that performed best focused on just three fundamentals:

Winning the right jobs
Making sure project fees covered delivery costs
Invoicing early and collecting debt quickly

This article focuses on the second, because even well-run practices quietly lose profit when fees are set without sufficient rigour or scope changes go unmanaged.

Why getting project fees right becomes harder as firms grow

In 50–100 person architecture and engineering practices, fee pressure increases as projects become more complex, teams grow larger and delivery spans multiple stages and offices.

Two issues consistently undermine profitability:

Underestimating the true cost of delivery
Failing to charge for scope changes

Neither is caused by bad intent. Architects and engineers are problem-solvers by nature. We would rather move on to design work than pause to revisit budgets or challenge scope creep.

But profitability improves dramatically when firms build consistent habits around project budgeting and scope control.

What a profitable project fee actually requires

There are only two areas that truly matter when setting fees in an architecture or engineering practice:

1. Accurate project budgeting

At a minimum, you must understand what a project will cost to deliver and ensure the fee exceeds that cost.

2. Disciplined scope tracking

Scope creep is the single biggest eroder of profit in built environment professional services firms.

Getting either wrong can turn a busy practice into an unprofitable one.

Bottom-up costing: the foundation of profitable fees

Before accepting any project, firms should run a structured go / no-go process that includes scope definition and cost budgeting.

A practical approach looks like this.

Step 1: Understand the value you’re providing

Start by clarifying the problem you are solving for the client and the value you create. Where possible, quantify that value in financial terms.

This anchors the fee discussion in outcomes, not just hours.

Step 2: Define the scope of services clearly

Be explicit about what is included and just as importantly, what is excluded.

Many practices use a standard services checklist as a starting point, such as the RIBA Standard Services, adapting it to suit different project types.

Step 3: Estimate the true cost of delivery

This should include:

Labour costs:
Estimated hours per role multiplied by fully loaded cost rates, including overheads and non-productive time
Other costs:
Sub-consultants, travel, printing, surveys and specialist inputs

If delivery costs exceed the perceived value, the project should be reconsidered. These are often the jobs where clients feel overcharged and teams feel underpaid.

Step 4: Set a fee that covers costs, at a minimum

Profit should not be accidental. If a fee does not comfortably cover delivery costs, risk is being accepted knowingly.

Step 5: Sense-check the fee

Compare your proposed fee against:

Total construction cost benchmarks
Previous similar projects, and whether they were actually profitable
The value-add identified earlier

Industry averages can be helpful, but they should never replace firm-specific insight.

Step 6: Adjust scope, not price

If the client pushes back on fees, revisit scope. Removing services is far safer than discounting and hoping delivery comes in under budget.

Why scope creep destroys profitability during delivery
Across tens of thousands of projects, a consistent pattern emerges:
Most architecture and engineering projects are profitable during early design stages, and lose money during construction.
The main cause is unmanaged scope creep.
As projects progress, additional requests accumulate. Individually they feel minor. Collectively they wipe out margin.

How to manage scope creep in larger A&E firms
Managing scope creep requires visibility and cultural alignment.

Effective practices do three things consistently:

Share the agreed scope with the whole team
Everyone working on the project should understand what was signed with the client.
Train teams to recognise out-of-scope requests
Staff at all levels should feel confident identifying variations and understand how unmanaged scope impacts profitability and ultimately salaries.
Track additional work separately
Time and costs for variations should be recorded independently from core services. This creates evidence-based conversations with clients about additional fees.

The result is not only better profitability, but clearer, more professional client relationships.

Fees, profitability and cash flow are connected
Even when fees are set correctly and scope is well managed, practices can still run into trouble if invoicing is delayed or debt is poorly controlled.
Profitability only matters if cash actually reaches the bank.
That final piece, invoicing early and collecting debt quickly, is the subject of the next article in this series.

How Fresh Projects supports fee control and profitability

Fresh Projects is built specifically for architecture and engineering practices.

It connects:

So teams can see early when fees are at risk, scope is drifting or margins are eroding, and act before problems escalate.

Better visibility leads to better decisions, more confident fee setting and more predictable profitability.

Earlier in my career, I worked in the finance team of a large architecture and engineering firm. We had more than twenty people running accounting functions alone.

Despite that scale, the firms that performed best focused on just three fundamentals:

Winning the right jobs
Making sure project fees covered delivery costs
Invoicing early and collecting debt quickly

This article focuses on the second, because even well-run practices quietly lose profit when fees are set without sufficient rigour or scope changes go unmanaged.

Why getting project fees right becomes harder as firms grow

In 50–100 person architecture and engineering practices, fee pressure increases as projects become more complex, teams grow larger and delivery spans multiple stages and offices.

Two issues consistently undermine profitability:

Underestimating the true cost of delivery
Failing to charge for scope changes

Neither is caused by bad intent. Architects and engineers are problem-solvers by nature. We would rather move on to design work than pause to revisit budgets or challenge scope creep.

But profitability improves dramatically when firms build consistent habits around project budgeting and scope control.

What a profitable project fee actually requires

There are only two areas that truly matter when setting fees in an architecture or engineering practice:

1. Accurate project budgeting

At a minimum, you must understand what a project will cost to deliver and ensure the fee exceeds that cost.

2. Disciplined scope tracking

Scope creep is the single biggest eroder of profit in built environment professional services firms.

Getting either wrong can turn a busy practice into an unprofitable one.

Bottom-up costing: the foundation of profitable fees

Before accepting any project, firms should run a structured go / no-go process that includes scope definition and cost budgeting.

A practical approach looks like this.

Step 1: Understand the value you’re providing

Start by clarifying the problem you are solving for the client and the value you create. Where possible, quantify that value in financial terms.

This anchors the fee discussion in outcomes, not just hours.

Step 2: Define the scope of services clearly

Be explicit about what is included and just as importantly, what is excluded.

Many practices use a standard services checklist as a starting point, such as the RIBA Standard Services, adapting it to suit different project types.

Step 3: Estimate the true cost of delivery

This should include:

Labour costs:
Estimated hours per role multiplied by fully loaded cost rates, including overheads and non-productive time
Other costs:
Sub-consultants, travel, printing, surveys and specialist inputs

If delivery costs exceed the perceived value, the project should be reconsidered. These are often the jobs where clients feel overcharged and teams feel underpaid.

Step 4: Set a fee that covers costs, at a minimum

Profit should not be accidental. If a fee does not comfortably cover delivery costs, risk is being accepted knowingly.

Step 5: Sense-check the fee

Compare your proposed fee against:

Total construction cost benchmarks
Previous similar projects, and whether they were actually profitable
The value-add identified earlier

Industry averages can be helpful, but they should never replace firm-specific insight.

Step 6: Adjust scope, not price

If the client pushes back on fees, revisit scope. Removing services is far safer than discounting and hoping delivery comes in under budget.

How to manage scope creep in larger A&E firms
Managing scope creep requires visibility and cultural alignment.

Effective practices do three things consistently:

Share the agreed scope with the whole team
Everyone working on the project should understand what was signed with the client.
Train teams to recognise out-of-scope requests
Staff at all levels should feel confident identifying variations and understand how unmanaged scope impacts profitability and ultimately salaries.
Track additional work separately
Time and costs for variations should be recorded independently from core services. This creates evidence-based conversations with clients about additional fees.

The result is not only better profitability, but clearer, more professional client relationships.

How Fresh Projects supports fee control and profitability

Fresh Projects is built specifically for architecture and engineering practices.

It connects:

So teams can see early when fees are at risk, scope is drifting or margins are eroding, and act before problems escalate.

Better visibility leads to better decisions, more confident fee setting and more predictable profitability.

Published:

7 May 2024

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1a Colinette Road

London

SW15 6QG

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Why getting project fees right becomes harder as firms grow

What a profitable project fee actually requires

1. Accurate project budgeting

At a minimum, you must understand what a project will cost to deliver and ensure the fee exceeds that cost.

2. Disciplined scope tracking

Bottom-up costing: the foundation of profitable fees

Step 1: Understand the value you’re providing

Step 2: Define the scope of services clearly

Step 3: Estimate the true cost of delivery

Step 4: Set a fee that covers costs, at a minimum

Step 5: Sense-check the fee

Step 6: Adjust scope, not price

Effective practices do three things consistently:

How Fresh Projects supports fee control and profitability

Why getting project fees right becomes harder as firms grow

What a profitable project fee actually requires

1. Accurate project budgeting

At a minimum, you must understand what a project will cost to deliver and ensure the fee exceeds that cost.

2. Disciplined scope tracking

Bottom-up costing: the foundation of profitable fees

Step 1: Understand the value you’re providing

Step 2: Define the scope of services clearly

Step 3: Estimate the true cost of delivery

Step 4: Set a fee that covers costs, at a minimum

Step 5: Sense-check the fee

Step 6: Adjust scope, not price

Effective practices do three things consistently:

How Fresh Projects supports fee control and profitability

Why Reporting Leaves Firms Guessing

Why Reporting Leaves Firms Guessing

Why Reporting Leaves Firms Guessing

Why Multi-Office Firms Lack Visibility

Why Multi-Office Firms Lack Visibility

Why Multi-Office Firms Lack Visibility

Why Reporting Slows Firms Down

Why Reporting Slows Firms Down

Why Reporting Slows Firms Down

Compare A&E Management Tools

Compare A&E Management Tools

Compare A&E Management Tools

Autumn Budget 2025: A&E Impact

Autumn Budget 2025: A&E Impact

Autumn Budget 2025: A&E Impact

Staying Profitable in Slow Markets

Staying Profitable in Slow Markets

Staying Profitable in Slow Markets

Why Traditional Reporting is Holding A&E Firms Back

Why Traditional Reporting is Holding A&E Firms Back

Why Traditional Reporting is Holding A&E Firms Back

Spreadsheets in A&E Firms: What Works

Spreadsheets in A&E Firms: What Works

Spreadsheets in A&E Firms: What Works

Women in AEC at Fresh Projects

Women in AEC at Fresh Projects

Women in AEC at Fresh Projects

Architecture Leadership Challenges

Architecture Leadership Challenges

Architecture Leadership Challenges

5 Ways to Outgrow Spreadsheets Profitably

5 Ways to Outgrow Spreadsheets Profitably

5 Ways to Outgrow Spreadsheets Profitably

The Profitability Pyramid Explained

The Profitability Pyramid Explained

The Profitability Pyramid Explained

3 Lessons to Help You Run a More Profitable Practice

3 Lessons to Help You Run a More Profitable Practice

3 Lessons to Help You Run a More Profitable Practice

Embracing Neurodiversity in Architecture

Embracing Neurodiversity in Architecture

Embracing Neurodiversity in Architecture

Profitable Projects: Winning the Right Projects in AEC

Profitable Projects: Winning the Right Projects in AEC