The verdict in three sentences
A practice of 18 people with 40 live projects that does not compare time spent with the fee for each stage discovers its losses too late, often at handover. A custom fee tracking tool costs EUR 25,000 to 45,000 and is delivered in 3 months. The realistic goal is to gain 5 to 10 margin points by spotting overruns from preliminary or technical design onwards and billing on actual progress.
Why practices lose money without seeing it
Fees are split by stage in the contract (sketch design, preliminary design, final design, technical design, tendering, design review, site supervision, handover, in line with the Dutch DNR stages), but time is logged globally, if at all. The director sees annual revenue, not the profitability of each commission. Site supervision and handover, which stretch with construction, often absorb the margin earned on design.
| Work stage | Typical share of fee | Common time overrun | Consequence |
|---|---|---|---|
| Sketch and preliminary design | 15 to 20 % | +20 % (client iterations) | margin eaten from the start |
| Final design | 12 to 15 % | +10 % | delayed invoicing |
| Technical design | 18 to 22 % | +15 % (engineer coordination) | frequently underestimated |
| Tendering | 6 to 8 % | +10 % (failed tenders) | unbilled work |
| Design review | 4 to 6 % | low | stable |
| Site supervision | 20 to 25 % | +30 to 50 % (extended build) | biggest source of loss |
| Handover | 4 to 6 % | +40 % (open snags) | loss at the end of the commission |
2026 budget: custom tool or practice management software
Practice management software costs EUR 40 to 90 per user per month. It suits practices that accept its logic. Custom makes sense when you work in joint ventures with complex fee splits, frequent variations and public contracts with specific billing rules.
| Criterion | Practice management software | Custom tool |
|---|---|---|
| Initial cost | EUR 2,000 to 6,000 setup | EUR 25,000 to 45,000 |
| Subscription (18 users) | EUR 8,600 to 19,400 a year | EUR 0 |
| Maintenance and hosting | included | EUR 3,000 to 5,000 a year |
| Joint venture splits and variations | limited | built around your contracts |
| Mobile and on-site time logging | varies | included |
| Overrun alerts per stage | standard | custom thresholds |
| 5-year cost (order of magnitude) | EUR 45,000 to 103,000 | EUR 40,000 to 70,000 |
The features that change profitability
The tool rests on five building blocks: time logging by project and stage in under a minute a day, hour budgets derived from fees and each person's hourly rate, a planned versus actual margin dashboard, progress billing with invoices ready to send, and alerts when a stage passes 80 % of its hour budget. Accounting export and variation management complete the scope.
The deciding factor is adoption: if logging time takes more than 2 minutes a day, teams drop off. The interface must be designed for architects, on desktop and on a phone during site visits.
Mini case study
Pieter, director of an architecture practice in Amsterdam, 18 people, EUR 2.1 million in annual fees and a 6 % net margin. He invests EUR 38,000. By spotting site supervision and handover stages that overrun, the practice negotiates variations on 6 projects and reins in time elsewhere. Measured margin gain in year one: 5 points, or EUR 105,000. Progress billing also cuts invoicing lag from 45 to 20 days, freeing about EUR 140,000 in cash. Payback: around 4 months.
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FAQ
How much does fee tracking software for an architecture practice cost?
Budget EUR 25,000 to 45,000 for a custom build serving 10 to 30 people, plus EUR 3,000 to 5,000 a year in maintenance.
Does the tool follow standard work stages?
Yes, the DNR stages from sketch design to handover are set by default, with optional extra services (project management, BIM coordination, surveys). Each contract can have its own fee split.
How long does time logging take?
Under a minute a day per person, thanks to favourite projects and a pre-filled weekly timesheet. That is what keeps logging above 95 %.
Can we manage joint ventures with engineering firms?
Yes, the fee split between lead consultant and partners is tracked by stage, with each party's invoices.
How long does rollout take?
3 months, including 2 weeks to load live projects and train the team.
Let's scope your project. Send us a sample contract and your list of live projects: we will price a tool between EUR 25,000 and 45,000 delivered in 3 months. 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.
