Profitability is under pressure in architecture and engineering firms around the world. Total Synergy’s 2025 Benchmark Report shows half of firms go over budget, with poor tracking and scope creep to blame.

Software company Total Synergy’s 2025 Architecture & Engineering Benchmark Report found:

• 52% of firms report at least one in four projects exceed budget.
• Scope creep is the top cause, followed by underquoting and poor tracking.
• 48% spend over 70% of their time on design, but administration and approvals consume valuable hours.
• 54% still manage resources manually using spreadsheets or meetings.

Around half (48%) of firms report net profit margins above 15%, but four in 10 don’t adequately track their billing. And while 65% track profitability in real time using dashboards or software, one-third do not – missing critical insights.

“Many firms still rely on instinct, manual coordination or post-project reviews to understand performance,” says Total Synergy’s Chief Operating Officer Daniel Cran.

Firms that protect design time with smarter workflows and integrated tools report higher efficiency. Among those using project management software, 100% report a noticeable boost in performance.

“To stay financially healthy, firms need more than strong fees – they need a clear picture of where time is spent, money is made and revenue is lost,” Daniel adds.

Total Synergy also asked respondents for their insights into future trends. This revealed:

• 80% believe automation and AI will significantly impact design processes.
• 47% say economic uncertainty is the biggest long-term challenge.
• 77% say client service and responsiveness are their biggest differentiators.
• 45% have no current plans to expand services or markets.

Headquartered in Australia, Total Synergy supports architecture and engineering firms in over 20 countries. Its all-in-one platform streamlines project management, resource allocation and financial tracking – saving time and empowering teams to focus on creating exceptional designs.

“While some firms are focused on growth, others are prioritising stability and refinement. Those that plan ahead, rather than react, will be in the best position to adapt and thrive,” Daniel concludes.

Check out Total Synergy’s 2025 Architecture & Engineering Benchmark Report