Job Costing Tips for Architects & Engineers: Improve Profitability on Every Project
Architectural and engineering (A&E) firms face some of the most complex project landscapes in business. Without accurate and effective job costing systems, even high-revenue projects can quietly turn into financial headaches. Gaining clear visibility into labor, overhead, and phase-by-phase performance is essential to keeping your projects on track and your margins healthy.
This month, we’re sharing job costing strategies tailored specifically for A&E professionals.
🏗️ Track by Phase, Not Just by Project
Design. Development. Permitting. Construction administration. Each phase of an A&E project has different time, complexity, and staffing demands.
▪️ Assign time and expenses by phase in your accounting software or project management system.
▪️ Compare estimated vs. actual costs per phase to spot scope creep early.
▪️ Use this insight to improve estimates or renegotiate change orders before they hurt your margin.
👥 Track by Role or Department
An engineer’s billable rate is very different from a junior drafter’s, and their impact on profit is, too.
▪️ Track labor hours by role or team to see where high-cost labor is over- or under-utilized.
▪️ Use this data to make smarter staffing decisions and build more accurate proposals.
🕒 Timesheets: Your Most Underrated Tool
Yes, everyone groans at the word. But accurate, detailed timesheets are your most powerful source of job costing data.
▪️ Require team members to log time daily, even if it’s rounded in 15-minute increments.
▪️ Track time by phase, task type, or client code for better analysis.
Don’t just mark time as non-billable, track why it wasn’t billable (internal revisions? client delays?).
💰 Include Soft Costs Like Software and Subscriptions
Tools like CAD, Adobe, or Asana might span multiple projects, but they’re still part of your cost base.
▪️ Allocate software and tech costs by headcount or time spent per job.
▪️ Evaluate ROI across projects and justify tech upgrades when the value is clear.
🔄 Schedule Regular Project Cost Reviews
Internal checkpoints help you course-correct before it’s too late.
▪️ Review job costing data at 25%, 50%, and 75% completion stages.
▪️ Flag early indicators of scope creep, budget overruns, or delays.
▪️ Adjust resources or priorities mid-project to protect your margins.
Ready to Fine-Tune Your Job Costing Process?
MJ Webb Bookkeeping helps A&E firms optimize their financial systems, increase profitability, and gain clarity across projects. From setting up phase-based job costing to aligning your software stack, we help you run leaner and smarter.
📞 Contact us today to schedule a discovery call and take control of your firm’s finances.