Zweig Group, the leading provider of advisory services, research, and education for the AEC industry, has released its 2025 Fee & Billing Report of AEC Firms. This definitive resource offers a clear picture of today's fee and billing practices, with insights on billing rates, chargeability, project contracts, and payment trends. Compiled from an extensive national survey, the report covers fee structures across major AEC markets, billing and utilization data for 33 levels of employee (ranging from clerks to principals), consultant fees, reimbursable expenses, and evolving collections strategies.
Key findings from the 2025 report include:
- Updating billing rates. Billing rates have grown by a median of 11 percent over the past three years, with an upper quartile increase of 15 percent. Ninety-five percent of firms reported updating billing rates at least annually in 2025, up from 83 percent in 2024. These increases reflect firms’ growing need to adjust fees more proactively to keep pace with rising operational costs, competitive salaries, and inflationary pressures.
- Chargeability gap rises slightly. After years of steady improvement, the gap between projected and actual chargeability rose slightly in 2025, increasing from 2.2 percent in 2024 to 2.9 percent in 2025. This shift highlights the need for firms to continue refining project planning and staff utilization strategies to stay efficient in a competitive environment.
- Collections hold steady. Firms reported an average of 54 days to collect payment after invoicing – holding steady compared to last year. To further improve collections, firms could implement stronger project controls, greater client focus on cash flow, and implement more dedicated collections management processes.
- Collections responsibility shifts back to project and leadership teams. In 2025, firm leadership (presidents, CEOs, and/or managing partners) and project managers each account for 27 percent of firms’ collections responsibility, while accounting personnel now account for just 20 percent. This shift signals a return to collections being managed more closely by firm leadership and project teams rather than centralized accounting departments.
- Direct selection drives stronger growth. Firms winning direct selection contracts – whether in commercial, industrial, or public projects – are reporting faster growth and healthier margins. In some markets, more than 70 percent of prime contracts are now awarded through direct selection, underscoring the value of strong relationships and reputation.
- Fee structures increasingly market-specific. Firms are adapting fee structures to better align with market conditions, with sectors like healthcare commanding architecture fees ranging from 7 to 10 percent of construction costs. Tailoring fee strategies to each market is becoming critical to maintaining competitiveness and profitability.
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Emergency work commands a growing premium. Thirty-seven percent of firms reported charging premium fees for emergency projects in 2025, with median markups around 15 percent above standard rates. As client demands for quick turnaround increase, firms are capitalizing by pricing urgent work appropriately to protect margins.
Zweig Group’s 2025 Fee & Billing Report of AEC Firms is the definitive resource for firms looking to benchmark fees, billing practices, and staff utilization. Featuring detailed breakdowns by firm size, region, and market sector, the report gives leaders a clear view of how their firms compare to peers nationwide. In today’s competitive market, it remains the essential guide for optimizing pricing strategies, improving productivity, and driving stronger financial performance.