For engineering firms

Software for Engineering Firms

An engineering practice sells hours against a fee. Whether a commission made money is decided by what those hours really cost and how many of them the job eats. SUNAGO Matrix derives the first from salary, capacity, holiday and real utilization, and reports the second while the work is still running.

A fixed fee turns every hour into a decision

On a time-and-materials job an extra hour is extra revenue. On a fee-based commission it is not: the fee is already agreed, so every additional hour comes straight out of the margin. That single difference is why engineering practices need different software from the general project management market, and why a task board tells you almost nothing about whether the work is going well.

The trouble is that the fee looks healthy for most of the commission's life. Hours accumulate quietly, the drawing set grows, a client asks for one more option, and the overrun only becomes obvious near the end - by which point the choices are to absorb it or have an awkward conversation about scope.

Two numbers change that, and both have to be right. What an hour of your team costs, honestly rather than conveniently. And where the commission lands if it carries on the way it is going. SUNAGO Matrix computes both continuously, from the same logged hours your engineers already record.

What an hour actually costs

One engineer, EUR 70,000 annual gross salary, 25 days holiday, full-time. The rate most firms use on the left, the derived rate on the right. Illustrative figures on a 1,850-hour nominal year and firm overhead of EUR 20 per billable hour.

StepSalary over a nominal yearDerived from real utilization
Hours the salary spreads over1,8501,850 less 185 holiday hours, times 70% utilization = 1,166
Salary cost per billable hourEUR 37.84EUR 60.03
Overhead share per billable hourUsually omittedEUR 20.00
True cost per billable hourEUR 37.84EUR 80.03
Margin at a EUR 95 charge-out rate60%16%

Same engineer, same salary, same charge-out rate. One method reports a commission at 60 percent margin, the other at 16. A practice bidding on the first number will keep winning work at EUR 95 an hour and keep wondering why a full order book does not turn into cash.

The gap widens as utilization falls. At 55 percent rather than 70, the same engineer costs over EUR 96 per billable hour all in, and EUR 95 is a loss on every hour booked. In SUNAGO Matrix this rate is system-calculated from the figures held against each employee, so it moves when their utilization moves and every project reprices with it.

One utilization target for the whole practice is the wrong target

Engineering practices are unusually mixed. A principal wins work, holds the client relationship, checks drawings and still bills. A graduate engineer bills almost everything they do. A technician sits somewhere in between, and the person running the office bills nothing at all.

Holding all of them to one firm-wide number means the principal is permanently failing and the graduate is permanently comfortable, and neither figure tells you anything you can act on. So every employee carries their own budgeted utilization rate, and rates can be set month by month, because a realistic August in a practice where half the office is away is not a realistic October.

Those targets are not decoration. Utilization is one of the inputs to cost per hour, so the rate you set for a person reaches every commission they touch. It is reported per person and per team in the employee reporting.

A budgeted utilization rate on every employee
Different rates per month where the year is uneven
Utilization feeding cost per hour automatically
Reported per person, per team and firm-wide

If you are looking at Deltek

Deltek is the incumbent in this market and Ajera and Vantagepoint are serious products with a long history in architecture and engineering. If you need full project accounting with a general ledger inside the same system, that is their ground and they cover it.

The practical difference for a smaller practice is what it costs to find out. Deltek publishes no price for Ajera: the route is a demo request. SUNAGO Matrix is EUR 3 per seat per month billed yearly, on one plan, from a single seat, and you can price out a team of six before speaking to anyone. The side-by-side, with sources and read dates, is on the Deltek comparison.

Further reading: resource planning for engineering firms, timesheet software for engineering firms and how to calculate a true cost per hour.

Software for engineering firms: common questions

Cost rates, fee-based commissions, utilization targets and what it costs.

What does an engineering firm need that generic project software does not give it?
A truthful cost per hour, and a forecast that moves while the job is still running. An engineering practice sells hours against a fee, so the margin on a commission is decided by what those hours actually cost and how many of them the job consumes. Generic project tools track tasks and dates and hold neither number. SUNAGO Matrix derives each person's cost per hour from their salary, capacity, holiday entitlement and real utilization, then reports Forecast at Completion on every project from the hours logged against it.
How is cost per hour calculated?
Annual gross salary divided by that person's own billable hours, where billable hours are their contracted capacity adjusted for part-time percentage, minus vacation entitlement, multiplied by their actual utilization rate. On top sits their share of company overhead: yearly operating expenses divided by the firm's total billable hours, with non-billable colleagues' salaries in that overhead pool. An engineer at 60 percent utilization therefore costs materially more per billable hour than a colleague on the same salary at 85 percent, and every commission they touch reflects it.
Can we set different utilization targets for different roles?
Yes, and you should. Every employee carries their own budgeted utilization rate, defaulting to 80 percent, and rates can be set month by month. A principal who wins work, manages clients and still delivers cannot carry the same target as a full-time design engineer, and holding both to one number makes one of them permanently fail on paper.
Does it handle fee-based commissions rather than time and materials?
The project carries a budget, phases and milestones, and progress is measured in hours logged rather than a completion percentage someone typed in. That is what a fixed-fee commission needs: the fee is set, so the only question that matters is how much of it the work is consuming and where that lands. Forecast at Completion answers it continuously, and financial danger warnings flag a project before the fee is gone.
How does it handle subconsultants and external services?
External services and materials sit on the project alongside labour, so a commission that leans on a structural or M&E subconsultant shows its full cost rather than only the hours your own people booked. Expenses join them, with markup applied at approval by the person reviewing rather than by whoever spent the money.
What does it cost, and how long does it take to get running?
EUR 3 per seat per month billed yearly, one plan, every module included, from a single seat. Setup is days rather than an implementation project: create the workspace, add your people with their salary, capacity and utilization, then import or enter live commissions. Onboarding, data transfer and team setup are included rather than billed.

Know where a commission lands before it lands

EUR 3 per seat per month billed yearly, every module included, free onboarding and data transfer. 14-day trial, no credit card required.