Digital Africa11 min read

Fee tracking by project phase for an architecture practice in New York (2026)

Mohamed Bah·Fondateur, Kolonell
October 24, 2026
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Fee tracking by project phase for an architecture practice in New York (2026)

Fee tracking by project phase for an architecture practice in New York (2026)

Digital Africa

The verdict in three sentences

A 25-architect practice in New York bills its commissions by phase (schematic design, design development, construction documents, bidding, construction administration) but rarely measures actual time spent per phase, which hides overruns of 10 to 20% in DD and CDs. Specialised SaaS at 40 to 80 USD per user per month is enough if your projects are standard, while custom software at 40,000 to 80,000 USD pays off once you manage joint ventures, change orders and additional services. Either way, the goal is the same: see margin per project and per phase every Monday, not at year-end close.

Where fees leak

The fee split by phase is set in the contract, often following customary percentages. The problem is time consumed: redesigns requested by the client, unbilled additional studies, construction that drags on. Without time entry linked to the phase, the practice finds the loss during construction administration.

PhaseCustomary share of feesFrequent time overrunTypical cause
Schematic design12 to 18%5 to 10%client-requested options
Design development15 to 20%10 to 20%programme changes
Construction documents18 to 22%10 to 18%consultant coordination
Bidding and negotiation5 to 8%0 to 5%failed bids
Submittal review5 to 8%5 to 10%volume of shop drawings
Construction administration20 to 25%15 to 30%site delays
Closeout3 to 5%10 to 40%punch list dragging on

On a portfolio of 3.1 million USD in annual fees, an average unrecovered overrun of 12% represents about 372,000 USD of work produced with no compensation.

Specialised SaaS or custom: the 2026 comparison

Practice management software for architects covers timesheets, percentage-complete billing and dashboards. It works well until your rules step outside the box: joint ventures with fee splits between partners, fixed fees mixed with hourly work, successive change orders.

CriterionSpecialised SaaSCustom software
Cost for 25 users40 to 80 USD per user/month, so 12,000 to 24,000 USD a year40,000 to 80,000 USD then 4,500 to 9,000 USD a year
5-year cumulative cost60,000 to 120,000 USD58,000 to 125,000 USD
Project phasesstandard, hard to changeconfigurable, additional services included
Joint ventures and subconsultantssimple splitsharing rules by scope and phase
Percentage-complete billingyesyes, with project manager approval
Accounting integrationstandard exportsdirect connector (QuickBooks, Sage Intacct)
Go-live2 to 6 weeks3 to 5 months

Over 5 years, costs converge. The difference is fit: if you spend more than 4 hours a month reworking exports in Excel, custom wins.

The dashboard that changes decisions

The key module is a weekly dashboard per project: contracted fees per phase, hours consumed valued at real cost, estimate to complete from the project manager, and an alert as soon as consumption passes 80% of the phase budget. The principal also sees margin by client and project type (residential, commercial, public buildings), which guides which competitions to enter.

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You are :

Rachel, managing principal of a 25-person practice in Brooklyn, bills 3.1 million USD in fees a year. An audit of 12 projects shows a 12% average overrun in DD, CDs and CA. With custom software at 53,000 USD, the practice detects drift at 80% consumption and negotiates change orders on half of the overruns, so 6% of the fees concerned. On a scope of 1.8 million USD (the three phases), that is 108,000 USD a year recovered. Estimated payback: 6 months, before counting administrative time saved.

FAQ

How much does architecture practice management software cost in 2026?

Specialised SaaS costs 40 to 80 USD per user per month. Custom software costs 40,000 to 80,000 USD, then 4,500 to 9,000 USD a year in maintenance.

Does the software handle project phases and additional services?

Yes, each phase carries its fee percentage and hour budget. Additional services (interiors, FF&E, code consulting) are added as separate lines with their own margin.

Will architects actually log their time?

Adoption depends on simplicity: under 2 minutes of entry per day, on desktop or mobile, and a Friday reminder. Practices that share the dashboard with project managers reach over 90% completion.

Can we import project history?

Yes, ongoing projects and two to three years of history are imported from your spreadsheets or previous tool. Allow 1 to 2 weeks for the import.

How soon do we see results?

The first dashboards are usable 4 to 6 weeks after go-live, once timesheets build up. Phase overruns show up in the first month.

Let's scope your project. Send us your typical commission types and current tool, and we will scope the perimeter, indicative budget and a 3 to 5 month plan. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.

Tags:#architecture software#practice management#New York#fees#project phases#project profitability
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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.