The verdict in three sentences
A Toronto engineering consultancy with 60 structural and mechanical engineers that only learns project profitability at year end usually leaves 3 to 6 margin points on the table, because time overruns stay invisible during each phase. Custom project and billing software costs CAD 60,000 to 125,000 (2026 order of magnitude) for a 4 to 6 month project, versus CAD 70 to 125 per user per month for a market ERP. The right choice depends on how many of your contracts follow phased fee schedules and how complex your progress billing is.
The real problem: invisible margin
In a structural and mechanical firm, a mid-rise residential project moves through phases typical of Ontario practice: schematic design, design development, construction documents, tender, contract administration and post-construction. Each phase carries a share of the fee, often guided by the OAA and Consulting Engineers of Ontario fee frameworks. If design development consumes 140 % of its budgeted hours, the project margin erodes long before the final invoice, but nobody sees it when timesheets sit in a monthly spreadsheet not tied to phases.
Project software links three flows: time by phase, fee budget by phase and progress billing. Project managers see burn rate every week, and the principal sees forecast margin per project.
| Indicator | Monthly spreadsheet | Project and billing software |
|---|---|---|
| When margin is known | Year end | Every week |
| Timesheet entry | Global, monthly | By project and phase |
| Phase overrun alert | None | At 80 % of budget used |
| Progress billing | Calculated by hand | Generated from approved progress |
| Invoice issue time | 15 to 25 days after month end | 3 to 5 days |
| Change orders and extra services | Often forgotten | Tracked and billed |
| Team workload forecast | Gut feeling | Schedule per engineer |
Market ERP or custom build
ERPs built for engineering firms handle timesheets and billing well. Their limits show on specifics: fee splits with sub-consultants, holdback tracking under Ontario's Construction Act, or integration with your design tools.
| Criterion (2026 order of magnitude) | Market ERP | Custom build |
|---|---|---|
| Upfront cost | CAD 12,000 to 30,000 configuration | CAD 60,000 to 125,000 |
| Annual cost for 60 users | CAD 50,400 to 90,000 | CAD 9,000 to 18,000 maintenance |
| Five-year total | CAD 264,000 to 480,000 | CAD 105,000 to 215,000 |
| Phases and sub-consultants | Standard | Mirrors your contracts |
| Holdback and HST handling | Varies by vendor | Built in |
| Time to go live | 2 to 4 months | 4 to 6 months |
At Kolonell, custom applications follow the grid: simple 2,500,000 to 4,000,000 FCFA (EUR 3,810 to 6,100), medium 4,000,000 to 7,000,000 FCFA (EUR 6,100 to 10,670), complex 7,000,000 to 15,000,000+ FCFA (EUR 10,670 to 22,870+). A full project and billing tool is complex level, and exact scope is set in the quote.
Project rollout
- Month 1: project types, phase model, billing rules.
- Months 2 and 3: timesheets, phase budgets, alerts.
- Month 4: progress billing, holdbacks, accounting export.
- Months 5 and 6: margin dashboards, workload planning, pilot on 10 projects and switch-over.
Success depends on timesheet discipline: a 10 minute weekly entry per engineer, built into the Monday routine. Principals should review the margin dashboard in the same weekly meeting, so that any phase above 80 % of budget gets a decision: a change order, a scope discussion with the client, or a staffing adjustment.
Mini case study
Priya, managing principal of a structural and mechanical consultancy in Toronto, employs 60 engineers and bills CAD 9.5 million a year. Operating margin is 8 %. After a year on the tool, phase overrun alerts and billing of forgotten change orders lift margin by 4 points.
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Calculation: CAD 9,500,000 x 4 % = CAD 380,000 of extra margin a year. For a CAD 100,000 project plus CAD 13,000 annual maintenance, payback comes in a little over 3 months of full use. Even with a cautious 2 point gain, CAD 190,000, payback stays under 7 months.
FAQ
Do engineers have to log time every day?
No, a weekly entry by project and phase is enough for 90 % of consultancies. It takes 10 minutes when the tool lists each engineer's active projects.
Does it handle phased fee contracts?
Yes, the phase model is configured with your fee percentages, including additional services such as field reviews or energy modelling.
Can we bill with sub-consultants?
Yes, each project can split fees between prime and sub-consultants with one invoice per entity. This usually represents 10 to 15 % of the project budget.
How does it connect to accounting?
Through an export of invoices and time to your accounting system, such as QuickBooks or Sage, with HST correctly applied. Holdback releases are tracked per project.
How many margin points can we expect?
As a 2026 order of magnitude, firms that review phase burn weekly recover 3 to 6 points. Gains come mostly from billed change orders and overruns stopped before 120 %.
Related reading: our analysis of brokerage listing software in Dubai and our custom web application service.
Let's scope your project. We define with you a project and billing tool built around your phases and progress billing, with a 10 project pilot before switch-over. 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.
