Stop discounting your design fee
and start commanding project value.
We work with boutique architecture and interior design firm owners doing $165K-$3.3M in annual revenue (residential, commercial, hospitality, multifamily) who are tired of scope creep, late draws, and watching margin disappear in revision rounds. Our engagement works toward disciplined fixed-fee structures, predictable cash flow, and a healthier net margin. How fast it moves depends on how seriously you work the plan - what you will see from the first meeting is exactly what is holding the business back.
9 patterns we see in most architecture & interior design firms
Billable hour pricing on creative work - margin eaten by revision rounds
Root cause: Firm charges hourly. Client expects unlimited revisions. Junior designer spends 20 hours, you can only bill 12.
What we do: Move to fixed-fee productized service offerings. Schematic Design ($X), Design Development ($Y), Construction Documents ($Z) each with defined revision rounds. Beyond-scope work = change order. Target: margin lifts from 15% to 30%+ within 9 months.
Project margin known only at close-out - 6-12 months too late
Root cause: Time tracking exists but no one looks at it. Project manager has no margin visibility. Owner discovers a project lost money after the final invoice.
What we do: Real-time project margin dashboards in Monograph, BQE Core, or Studio Designer. Weekly PM review with target vs. actual hours. Mid-project alert when margin drops below threshold. Margin awareness changes behavior.
Contracts are generic Word docs - scope creep is built in
Root cause: Owner-architect uses a 10-year-old contract. AIA contracts seen as 'too formal' or 'too expensive.' Scope language is vague. Change order discipline absent.
What we do: Adopt AIA contract suite (B101 for owner-architect, B102 for residential, B103 for D-B-B) with carefully negotiated supplementary conditions. Train PMs on change order discipline. Adds 5-8 points of margin annually through proper scope management.
Cash flow tied to construction draws - 60-90 day collections
Root cause: Firm bills at construction milestones controlled by GC or owner. Bills go out, payments arrive 60-90 days later. Cash crunch every quarter.
What we do: Restructure to phase-based fixed fees (paid on completion of phase, not on construction draw). 25% mobilization on every project. Net 30 max with autopay or ACH discount. Target: cash cycle drops from 75 days to 35 days.
Project portfolio is 50/50 dream projects and unprofitable ones - no qualification
Root cause: Firm takes any work that walks in. Owner-architect's design ego makes 'cool projects' that lose money. No project qualification framework.
What we do: Project qualification framework: client type, project size, design freedom, payment terms, timeline. Bid only on qualified projects. Net 30% fewer projects, 60%+ revenue lift on the right ones.
Software stack is fragmented - ArchiCAD/Revit/AutoCAD/SketchUp/Photoshop all running parallel
Root cause: Each designer uses their preferred tool. Files don't talk to each other. PM spends 5 hours/week reconciling versions.
What we do: Standardize on one primary BIM tool and one concept tool, chosen on what your senior staff are genuinely fluent in. Defined workflow: BIM as source of truth, downstream tools for specific outputs. Cuts admin time 30%+.
Owner-architect doing schematic design on every project
Root cause: Owner doesn't trust junior staff on creative work. Owner is the brand. Owner is the bottleneck. Firm can't grow because owner can't step away from the drawing.
What we do: Develop 2-3 senior designers as 'signature' creative leads. Owner-architect shifts from doing schematic design on every project to design review + client relationships. Owner working hours drop from 60 to under 40 within 9 months.
No recurring revenue - every project starts at zero
Root cause: Architecture and design is project-based by nature. Owner views recurring revenue as impossible.
What we do: Build advisory retainers ($2,500-$10,000/month) with commercial real estate developers, multifamily owners, hospitality groups, and corporate clients. Master planning, FF&E refresh cycles, brand-standards consulting. Targets 15-30% recurring revenue within 18 months.
No marketing - 100% referral - pipeline visibility under 60 days
Root cause: Owner-architect says 'design firms market through their portfolio.' But portfolio shows nothing without distribution. Instagram, LinkedIn, design publications - all neglected.
What we do: Content cadence: Instagram (3 posts/week showing process + finished work), LinkedIn (1-2 posts/week on industry insights), submission to ArchDaily / Dezeen / Architectural Record. Pipeline visibility extends to 90-180 days.
The numbers we aim at
These are the targets we work toward in an engagement - a bar to measure against, not an average anyone measured for you.
| KPI | Typical starting point | Plan B target |
|---|---|---|
| Net profit margin per project | 10-18% | 25%+ |
| Project margin variance (quote vs. actual) | 10-20 pts | <5 pts |
| Days sales outstanding (DSO) | 75-100 | <40 |
| % revenue from fixed-fee (vs hourly) | 30-50% | 85%+ |
| % revenue from advisory retainers | 0-5% | 20%+ |
| Owner-architect weekly working hours | 55-70 | <40 |
| Pipeline visibility (months of confirmed work) | 1-3 months | 6+ months |
What working with us looks like
- 01
Month 1: Project + financial audit
We pull 24 months of project P&Ls. Every project's quote-to-actual margin, every designer's utilization, DSO, scope creep capture. We identify the 1-2 highest-leverage actions for your specific firm.
- 02
Months 2-3: Fixed-fee structure + contracts
We rebuild your service offerings into 3-tier productized packages with defined revision rounds. AIA contract suite adopted with negotiated supplementary conditions. Project margin dashboards deployed in Monograph or BQE Core.
- 03
Months 4-6: PM discipline + qualification
Weekly project review cadence established. Change order discipline enforced. Project qualification framework rolled out to BD. First advisory retainer relationships pitched and closed.
- 04
Months 7-12: Marketing + compounding
Content cadence (Instagram + LinkedIn + design publications) live. Pipeline visibility extends to 6+ months. Owner-architect working hours drop. Recurring revenue from advisory retainers at 12-20% of total. We shift to monthly cadence.
Common questions from architecture & interior design firms owners
What size firm is this for?−
Architecture, interior design, or both?+
Revit vs ArchiCAD vs SketchUp - which do you recommend?+
Monograph vs BQE Core vs Studio Designer - which PM software?+
Our clients hate AIA contracts. They think they're 'too formal.'+
What about Interior Designers - we mostly do FF&E procurement and don't do construction documents.+
Will you help with hiring?+
What about residential vs commercial vs hospitality - any specializations you don't work with?+
Who does the work?+
What's your fee structure?+
Stop billing hours. Start commanding project value.
20-minute strategy call. We'll tell you if we're a fit. No pitch. No pressure.