The verdict in three sentences
For an engineering consultancy with 40 engineers in Montreal, a custom time tracking and billing system (PSA) costs CAD 70,000 to 160,000, versus CAD 35 to 85 per user per month for market software, or CAD 17,000 to 41,000 a year. The real issue is margin per project: without time logged per phase and work package, a fixed-fee overrun is only discovered at close-out, when it is too late to negotiate a change order. A custom build is justified when progress billing follows design phases and construction draws in ways generic tools handle poorly.
Why margins disappear in an engineering consultancy
Mechanical and structural consultancies mostly bill fixed fees split into phases (concept, schematic design, design development, construction documents, tendering, construction administration) with a percentage of the fee per phase. Engineers log hours, when they do, in a weekly spreadsheet without a precise link to the phase. Result: management sees invoiced revenue, never the time actually consumed per project.
| Symptom | Usual cause | Software function | 2026 figures |
|---|---|---|---|
| Fixed fees overrun, found late | No time tracking per phase | Hour budget per phase and alert at 80% | 3 to 6 margin points recovered |
| Unbilled change orders | Client changes not tracked | Change request log and change order quotes | 2 to 5% more fees |
| Late progress billing | Percentages calculated by hand | Invoices generated from validated progress | Billing 10 to 20 days earlier |
| Incomplete timesheets | Weekly spreadsheet, gaps | Daily mobile entry, reminders, monthly lock | Completion from 70% to 95% |
| Unclear cost rate | Salaries and overheads not allocated | Loaded hourly cost per profile | More accurate proposals |
| Manual accounting export | Re-keying invoices | Export to the accounting system with GST and QST | 2 to 3 days saved per month |
On CAD 6 million of revenue, each margin point is worth CAD 60,000. Simply alerting a project lead when a phase has used 80% of its hour budget changes the conversation with the client.
Market software or custom: comparison
| Criterion | Market PSA software | Custom | Comment |
|---|---|---|---|
| Upfront cost | CAD 5,000 to 20,000 configuration | CAD 70,000 to 160,000 | Depends on modules and integrations |
| Annual cost (40 users) | CAD 17,000 to 41,000 | CAD 10,000 to 25,000 maintenance | Hosting included on the SaaS side |
| Design phases and fee percentages | Often worked around | Native | Decisive for design firms |
| Joint ventures and subconsultants | Limited | Fee split per partner | Common on public contracts |
| Bilingual French and English invoices | Variable | Native, aligned with Quebec language rules | Important for Quebec public clients |
| Five-year cumulative cost | CAD 90,000 to 225,000 | CAD 120,000 to 285,000 | Package cheaper, custom fits better |
Over five years the package remains somewhat cheaper, so the decision rests on fit: a consultancy bidding on public contracts with joint ventures, fee indexation and monthly draws gets more value from a tool built around those rules, especially when margin recovery outweighs the cost gap.
Modules of a typical project
A first 3 to 4 month release covers time entry per project, phase and work package, hour budgets and alerts, progress billing and accounting export (CAD 70,000 to 105,000). A second release adds resource planning per engineer, change order management and a forecast margin at completion dashboard (CAD 25,000 to 55,000). Integration with production tools (Revit, calculation software) is usually limited to importing project numbers.
Mini case study
Marc, director of a mechanical and structural consultancy in Montreal (illustrative persona), leads 40 engineers and generates CAD 6 million in revenue, with a 7% operating margin. His project leads discover fixed-fee overruns at close-out.
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He invests CAD 110,000 in custom software: time per phase, budget alerts, progress billing and a change order log. Conservative assumption: 3 margin points recovered through alerts and billed change orders, or CAD 180,000 a year. Progress billing 15 days earlier frees about CAD 250,000 of cash. The project pays back in 7 to 8 months.
FAQ
Will engineers actually log their time?
Yes if entry takes under 2 minutes a day on mobile or browser, with projects pre-filled from the schedule. A monthly lock and an automatic reminder push completion above 90%.
Does the software handle design phases?
Each project is split into phases with a fee percentage and an hour budget. Invoicing uses the progress validated by the project lead.
Can it connect to our accounting system?
Yes, exporting invoices and payments to common accounting systems costs CAD 4,000 to 12,000 depending on the format.
How long does a first release take?
Plan 3 to 4 months, including 3 weeks of scoping with project leads to model phases and cost rates.
Is custom relevant for 15 engineers?
Rarely. Below 20 to 25 users, market software at CAD 35 to 85 per user per month remains cheaper, possibly with a specific module added later.
Let's scope your project. We map your project billing rules, an indicative budget and a first operational release within 3 to 4 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.
