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

© 2026 Fresh Projects

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

© 2026 Fresh Projects

Profitable Projects: A Three-Part Series on AEC Profitability - Setting the Right Fee for Success

Profitable Projects: A Three-Part Series on AEC Profitability - Setting the Right Fee for Success

Profitable Projects: A Three-Part Series on AEC Profitability - Setting the Right Fee for Success

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Profitable Projects: A Three-Part Series on AEC Profitability

Welcome to Profitable Projects, a three-part series designed to help Architecture, Engineering and Construction firms improve project profitability.

Across the series, we explore three fundamentals of financial performance in AEC practices:

Each article focuses on practical, data-led strategies that reflect how AEC firms operate today.

Mastering the art of fee setting in AEC

In architecture and engineering, profitability hinges on a careful balance of cost control, project management and client communication. Few decisions have a greater impact on that balance than how fees are set.

Set fees too low, and even well-run projects struggle to perform financially. Set them correctly, and profitability becomes far more predictable.

The foundation: getting the fee right
Percentage-based fees versus bottom-up calculation

Many firms still rely on percentage-based fees, often guided by industry benchmarks. While familiar, this approach frequently breaks down on complex or non-standard projects.

A more reliable method is bottom-up fee calculation, where the fee is built directly from the defined scope of services and the cost to deliver them.

From Fresh Projects data, projects using bottom-up fee calculations consistently achieve stronger profit margins than those relying on percentage-based pricing. This reflects the value of grounding fees in real effort rather than assumptions.

Defining the scope of services

A clearly defined scope of services is essential for fair compensation and effective expectation management.

A detailed scope protects against scope creep and creates a clear commercial framework for managing change. Where scope is well defined, variations are far more likely to generate additional profit rather than erode margins.

This makes upfront clarity one of the most commercially valuable steps in the project lifecycle.

Calculating delivery costs accurately

Effective fee setting requires a clear understanding of delivery costs. This includes:

  • Labour effort by role and project stage

  • Hourly cost rates that account for utilisation and overheads

  • Direct project expenses

Without this level of detail, fees are often set too low to recover the true cost of delivery.

Quantifying project value

Bottom-up pricing should reflect more than cost recovery alone. It should also consider the value delivered to the client.

As one industry commentator put it, value pricing is not about charging what you are worth. It is about charging what the client values.

For example, an engineering firm that designs a sustainable office building delivering meaningful energy savings can quantify that long-term benefit and reflect it in the fee.

Image reference: X (Twitter) – @mwmoedinger

Tracking projected costs throughout the project

Even well-priced projects can lose profitability if costs are not tracked in real time.

Direct project costs

Expenses such as supplier invoices and travel should be tracked against each project and billed where appropriate. Linking direct costs to projects improves recovery and reduces leakage.

Time costs

Labour typically represents the largest cost in AEC firms. Tracking time accurately, including overhead allocation, allows practices to identify overruns early and take corrective action.

Visual tools such as scatter charts often reveal how time is actually being spent across different roles. These insights frequently highlight senior staff spending a disproportionate amount of time on administrative work rather than fee-earning delivery.

Pro tip
In many firms, partners and directors spend significant time running the business. Delegating procedural and financial tasks to lower cost roles often delivers a meaningful uplift in profitability by freeing senior staff to focus on high-value project work.

Image reference: Fresh Projects scatter chart

Managing scope creep effectively

Scope creep, the expansion of work beyond the original agreement, can quickly erode margins if not managed proactively.

Prevention strategies

To manage scope creep effectively, firms should:

  • Agree and sign clear contracts that define inclusions, exclusions and rates for additional work

  • Establish a formal process for handling out-of-scope requests

  • Track out-of-scope time separately to enable transparent billing and informed decisions

Structured processes and consistent tracking turn scope changes into manageable commercial conversations.

The profit timeline: design versus construction

Image reference: Fresh Projects dashboard showing profit distribution across project phases

A common pattern emerges across many projects. Early design stages often generate profit, while margins are eroded during construction. This makes vigilant scope and cost management particularly important later in the project lifecycle.

Visualising out-of-scope work


Image reference: Fresh Projects dashboard showing out-of-scope tracking

Separately tracking additional time and expenses serves two purposes:

  • It provides evidence to support additional fee requests

  • It explains why a project may have underperformed financially

Turning scope creep into a profit centre

Image reference: Fresh Projects dashboard showing scope creep as a profit centre

Some firms are reframing scope creep as an opportunity rather than a threat. By rigorously tracking and pricing variations, they maintain or even increase profitability as projects evolve.

One firm working on a mixed-use development successfully negotiated additional fees for extensive design changes by presenting clear, data-backed evidence of additional effort. Despite significant scope expansion, the project remained profitable.

Conclusion: the path to profitable projects

Profitable AEC projects are built on strong foundations. Bottom-up fee setting, real-time cost tracking and disciplined scope management all play a critical role.

Tools like Fresh Projects support this approach by providing visibility and structure that allow firms to protect margins while continuing to deliver high-quality work.

In the next articles in the series, we will explore:

Together, these form a practical framework for improving profitability across your practice.

Profitable Projects: A Three-Part Series on AEC Profitability

Welcome to Profitable Projects, a three-part series designed to help Architecture, Engineering and Construction firms improve project profitability.

Across the series, we explore three fundamentals of financial performance in AEC practices:

Each article focuses on practical, data-led strategies that reflect how AEC firms operate today.

Mastering the art of fee setting in AEC

In architecture and engineering, profitability hinges on a careful balance of cost control, project management and client communication. Few decisions have a greater impact on that balance than how fees are set.

Set fees too low, and even well-run projects struggle to perform financially. Set them correctly, and profitability becomes far more predictable.

The foundation: getting the fee right
Percentage-based fees versus bottom-up calculation

Many firms still rely on percentage-based fees, often guided by industry benchmarks. While familiar, this approach frequently breaks down on complex or non-standard projects.

A more reliable method is bottom-up fee calculation, where the fee is built directly from the defined scope of services and the cost to deliver them.

From Fresh Projects data, projects using bottom-up fee calculations consistently achieve stronger profit margins than those relying on percentage-based pricing. This reflects the value of grounding fees in real effort rather than assumptions.

Defining the scope of services

A clearly defined scope of services is essential for fair compensation and effective expectation management.

A detailed scope protects against scope creep and creates a clear commercial framework for managing change. Where scope is well defined, variations are far more likely to generate additional profit rather than erode margins.

This makes upfront clarity one of the most commercially valuable steps in the project lifecycle.

Calculating delivery costs accurately

Effective fee setting requires a clear understanding of delivery costs. This includes:

  • Labour effort by role and project stage

  • Hourly cost rates that account for utilisation and overheads

  • Direct project expenses

Without this level of detail, fees are often set too low to recover the true cost of delivery.

Quantifying project value

Bottom-up pricing should reflect more than cost recovery alone. It should also consider the value delivered to the client.

As one industry commentator put it, value pricing is not about charging what you are worth. It is about charging what the client values.

For example, an engineering firm that designs a sustainable office building delivering meaningful energy savings can quantify that long-term benefit and reflect it in the fee.

Image reference: X (Twitter) – @mwmoedinger

Tracking projected costs throughout the project

Even well-priced projects can lose profitability if costs are not tracked in real time.

Direct project costs

Expenses such as supplier invoices and travel should be tracked against each project and billed where appropriate. Linking direct costs to projects improves recovery and reduces leakage.

Time costs

Labour typically represents the largest cost in AEC firms. Tracking time accurately, including overhead allocation, allows practices to identify overruns early and take corrective action.

Visual tools such as scatter charts often reveal how time is actually being spent across different roles. These insights frequently highlight senior staff spending a disproportionate amount of time on administrative work rather than fee-earning delivery.

Pro tip
In many firms, partners and directors spend significant time running the business. Delegating procedural and financial tasks to lower cost roles often delivers a meaningful uplift in profitability by freeing senior staff to focus on high-value project work.

Image reference: Fresh Projects scatter chart

Managing scope creep effectively

Scope creep, the expansion of work beyond the original agreement, can quickly erode margins if not managed proactively.

Prevention strategies

To manage scope creep effectively, firms should:

  • Agree and sign clear contracts that define inclusions, exclusions and rates for additional work

  • Establish a formal process for handling out-of-scope requests

  • Track out-of-scope time separately to enable transparent billing and informed decisions

Structured processes and consistent tracking turn scope changes into manageable commercial conversations.

The profit timeline: design versus construction

Image reference: Fresh Projects dashboard showing profit distribution across project phases

A common pattern emerges across many projects. Early design stages often generate profit, while margins are eroded during construction. This makes vigilant scope and cost management particularly important later in the project lifecycle.

Visualising out-of-scope work


Image reference: Fresh Projects dashboard showing out-of-scope tracking

Separately tracking additional time and expenses serves two purposes:

  • It provides evidence to support additional fee requests

  • It explains why a project may have underperformed financially

Turning scope creep into a profit centre

Image reference: Fresh Projects dashboard showing scope creep as a profit centre

Some firms are reframing scope creep as an opportunity rather than a threat. By rigorously tracking and pricing variations, they maintain or even increase profitability as projects evolve.

One firm working on a mixed-use development successfully negotiated additional fees for extensive design changes by presenting clear, data-backed evidence of additional effort. Despite significant scope expansion, the project remained profitable.

Conclusion: the path to profitable projects

Profitable AEC projects are built on strong foundations. Bottom-up fee setting, real-time cost tracking and disciplined scope management all play a critical role.

Tools like Fresh Projects support this approach by providing visibility and structure that allow firms to protect margins while continuing to deliver high-quality work.

In the next articles in the series, we will explore:

Together, these form a practical framework for improving profitability across your practice.

Published:

Published:

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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

© 2026 Fresh Projects