The verdict in three sentences
An 18-person architecture firm in New York that does not track hours by AIA phase usually loses several points of margin during construction administration and only sees it at year end. Established platforms such as Deltek Ajera and BQE Core handle phase-based fees, time and billing for a per-user subscription, while a custom build costs roughly USD 45,000 to 90,000 in 2026. For most firms of this size the off-the-shelf route wins; custom pays off when joint ventures, consultant fee splits or bespoke dashboards break the standard model, and either way weekly time entry is what uncovers the typical 6 points of recoverable margin.
Where margin leaks between schematic design and closeout
Most US commissions follow the phases of the AIA owner-architect agreements: Schematic Design (SD), Design Development (DD), Construction Documents (CD), Bidding or Negotiation, and Construction Administration (CA). Fees for many building types land around 8 to 12 % of construction cost (2026 market ballpark, highly variable by project type and scope), and a common rule of thumb splits them roughly 15, 20, 40, 5 and 20 % across those phases.
The table models a USD 6 million fit-out and renovation in Manhattan at a 10 % fee, so USD 600,000, using that split. The last columns show what firms typically discover once they track time properly.
| Phase | Indicative fee share | Fee (USD) | Budgeted hours at USD 165/h | Actual hours | Variance |
|---|---|---|---|---|---|
| Schematic Design | 15 % | 90,000 | 545 | 610 | 12 % over |
| Design Development | 20 % | 120,000 | 727 | 760 | 5 % over |
| Construction Documents | 40 % | 240,000 | 1,455 | 1,500 | 3 % over |
| Bidding and Negotiation | 5 % | 30,000 | 182 | 150 | Under budget |
| Construction Administration | 20 % | 120,000 | 727 | 1,010 | 39 % over |
| Additional services (DOB filings, expediting coordination, change orders) | Billed hourly | Often unbilled | Not budgeted | 180 | Lost revenue |
The pattern is familiar: design phases stay close to budget, while CA overruns because site meetings, RFIs, submittal reviews and owner changes eat hours nobody assigns to the right project. In New York, coordination around DOB filings and building approvals adds hours that are easy to give away for free.
Off-the-shelf platform or custom build
| Option | 3-year cost for 18 users (2026 market ballpark) | Time to go live | Strengths | Limits |
|---|---|---|---|---|
| Deltek Ajera | Per-user subscription, public pricing varies by edition and modules | 1 to 3 months | Built for A/E firms, project accounting, phase budgets | Accounting-centric, learning curve |
| BQE Core | Per-user subscription, public pricing varies by plan | 1 to 2 months | Time, billing and project management in one cloud tool | Reporting customisation has limits |
| Generic time tracking app | Monthly subscription, public pricing varies by plan | 2 weeks | Simple and cheap | No phase or fee logic |
| Custom build by a US agency | USD 45,000 to 90,000 plus support | 3 to 5 months | Fits your contracts, JV splits and dashboards | Higher up-front cost |
| Nearshore build (Kolonell, Dakar) | Kolonell's prices: simple app EUR 3,810 to 6,100, medium app EUR 6,100 to 10,670 (4,000,000 to 7,000,000 FCFA) | 2 to 4 months | Code assigned, lower budget | Needs a precise written specification |
Custom is worth considering when the firm often works in joint ventures and must split fees with consultants, bills significant additional services outside the AIA phases, or wants resource forecasting six months out to decide on hiring. For a straightforward 18-person studio, Ajera or Core will usually do the job faster.
What the specification must cover
Whatever you buy, a handful of functions decide the return: weekly time entry per project and phase in under 3 minutes, hour budgets per phase derived from the fee, an alert when a phase reaches 80 % of its budget, billing by percentage complete with receivables tracking, and profitability by project, client and project type. If you work as a prime with consultants, add fee splits and consultant invoice tracking. Mobile time entry matters more than a sophisticated scheduling module nobody opens.
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Illustrative example: Rachel, a principal at an 18-person Manhattan firm with USD 3.2 million in annual fees, starts tracking hours by phase. After six months she sees CA running 35 to 40 % over budget and two private clients generating unbilled changes. By pricing CA realistically in new proposals, invoicing additional services and renegotiating one loss-making contract, she lifts margin by 6 points, or USD 192,000 a year. An off-the-shelf subscription at an assumed USD 60 per user per month costs her about USD 13,000 a year. Even a custom build at USD 70,000 plus USD 9,000 a year in support pays back in under five months.
FAQ
How much does practice management software cost for an 18-person firm?
Off-the-shelf A/E platforms charge per user per month, so for 18 people expect roughly USD 8,000 to 15,000 a year in 2026 (market ballpark, depending on edition). A custom build costs USD 45,000 to 90,000 plus 10 to 15 % a year for support.
Do Ajera and BQE Core handle AIA phases?
Both let you set up projects with phases, fee budgets and billing by percentage complete. A custom tool lets you define your own phase structure, including additional services and JV fee splits that off-the-shelf tools handle less flexibly.
How do we get architects to log their time?
Keep entry under 3 minutes a week, on mobile, with each person's active projects pre-filled. Firms that review phase profitability in team meetings usually reach over 90 % complete timesheets within two months.
Can billing follow phase completion automatically?
Yes, invoices can be generated when a phase reaches the percentage agreed in the contract, with receivables tracked per client. This often shortens billing delays on CA by several weeks.
When is custom software the better investment?
When you regularly work in joint ventures, bill substantial services outside the AIA phases or want to link profitability, workload forecasting and hiring. Below about 10 staff with standard commissions, an off-the-shelf platform is almost always the better choice.
Let's scope your project. Tell us how your firm contracts, bills and staffs projects, and we will tell you honestly whether an off-the-shelf tool is enough or price a phased custom build with a firm 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.