The verdict in three sentences
An architecture practice that does not compare hours spent against fees phase by phase discovers its loss-making projects at closeout, when it is too late to renegotiate. Fee-by-phase tracking software with timesheets and overrun alerts costs USD 33,000 to 77,000 as a custom build, versus USD 45 to 90 per user per month for SaaS. For 16 people in New York, the right choice depends mainly on how many projects run in parallel and how detailed your client billing must be.
The problem: profitability visible too late
The principal of a 16-person New York practice runs about twenty active projects: multifamily housing, public facilities, adaptive reuse in Manhattan and Brooklyn. Fees represent 8 to 12% of construction cost, split by AIA phase. Without a tool, everyone logs hours in a spreadsheet, billing follows estimated progress and the real gap only shows at project end.
| AIA phase | Typical share of fees | Common overrun observed |
|---|---|---|
| Pre-design and programming | 5 to 8% | Unbilled options |
| Schematic design (SD) | 10 to 15% | Multiple client iterations |
| Design development (DD) | 15 to 20% | Rework after zoning or DOB review |
| Construction documents (CD) | 30 to 40% | Consultant coordination |
| Bidding and negotiation | 4 to 6% | Extended bid analysis |
| Construction administration (CA) | 20 to 25% | Delayed site, extra meetings |
| Closeout | 2 to 4% | Endless punch lists |
Construction administration often concentrates the loss: a job that runs 3 months late means 12 to 15 extra weekly meetings, or 60 to 90 unplanned hours.
What the software must do
The core turns the fee agreement into an hours budget per phase, then compares it continuously with timesheets. The functions that genuinely change practice management are few but must be well designed.
| Function | Expected gain | Custom budget (USD) |
|---|---|---|
| Fee agreement split by phase | Hours budget per project and phase | 5,500 to 11,000 |
| Weekly timesheets | 5 minutes per person per week | 5,500 to 12,000 |
| Overrun alerts at 80 and 100% | Renegotiate before phase end | 3,300 to 7,700 |
| Progress billing | Invoices generated from percent complete | 6,600 to 15,500 |
| Additional services | Traceability of extra scope | 4,400 to 10,000 |
| Principals' dashboard | Margin by project, client, type | 5,500 to 13,000 |
| Accounting export | Link with your accountant or QuickBooks | 2,200 to 7,800 |
| Indicative total | 33,000 to 77,000 |
By comparison, an architecture SaaS at USD 45 to 90 per user per month costs USD 8,600 to 17,300 per year for 16 people, with no code ownership and limited fit to your billing methods. Kolonell builds custom applications from 2.5 to 15M+ FCFA (EUR 3,810 to 22,870+) depending on complexity; anything else, such as an accounting integration, is quoted on request.
Rules that prevent an unused tool
Timesheet software nobody fills in is worthless. Three design choices make the difference: weekly rather than daily entry, phases prefilled from the contract, and an automatic Friday reminder. Add a simplified principals' view showing only projects on alert, sorted by dollar variance.
Mini case study
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Rachel, principal of a 16-person practice in New York, runs a 60-unit residential project with USD 18 million in construction cost and 8% fees, i.e. USD 1,440,000. Construction administration is worth 22%, or USD 316,800, for a budget of 2,400 hours at USD 132 fully loaded. The software alerts at 1,920 hours while the job is only 60% complete. Rachel negotiates an additional services amendment of USD 48,000 for 6 extra months of CA. Without the alert, the loss would have reached about USD 70,000, more than an entire USD 60,000 software project.
FAQ
How long does development take?
Allow 3 to 4 months for a first version with fee agreements, timesheets, alerts and billing. Advanced dashboards and the accounting export can follow in a second release of 4 to 6 weeks.
Can we import history for current projects?
Yes, contracts and hours kept in spreadsheets can be imported, usually in 2 to 5 days of work. That gives you the real margin of all 20 active projects from day one.
Does it handle public-sector contracts?
Yes: AIA phases, additional services and progress billing following agency rules. Net 30 payment terms can be tracked with automatic reminders.
SaaS or custom for 16 people?
A SaaS at USD 45 to 90 per user per month is enough if your contracts are standard. Custom software pays off with joint ventures, fee splits between consultants or your own billing rules, with the cost amortized over 4 to 6 years.
Will staff accept logging their hours?
A 5-minute weekly entry with prefilled phases is usually well accepted. Practices that share project margins with the team reach entry rates above 95%.
Let's scope your project. Send us your headcount, contract types and current tools, and we will propose a scope, an indicative budget and a delivery timeline. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
