TZL 1598 (web)

August 18, 2025, Issue 1598 WWW.ZWEIGGROUP.COM

TRENDLINES

Chargeability

58% 59% 60% 61% 62% 63%

Innovation in AEC must create measurable value for owners through smarter, more sustainable solutions. From efficiency to impact

2021 2022 2023 2024 2025

Zweig Group’s 2025 Financial Performance Report shows that the median chargeability rate for AEC firms is 61 percent, indicating steady utilization of staff labor on billable projects. This metric reflects how effectively firms are utilizing staff labor on billable projects, with rates remaining relatively stable over the past five years. Participate in a survey and save on a Zweig Group research publication.

I was reminded of this quote recently by a leader in the AEC innovation community: “A business has only two functions: marketing and innovation.” Peter Drucker – one of the pioneers of modern business management – believed that the purpose of a business is to create a customer. And that the only two internal activities that generate external results are marketing and innovation. According to McKinsey, “In a business context, innovation is the ability to conceive, develop, deliver, and scale new products, services, processes, and business models for customers ” (emphasis mine). Yet in today’s AEC industry, much of the innovation conversation – especially around AI – is focused inward: improving firm efficiency, The firms that will lead are those that innovate with a clear purpose: to create measurable value for the project owner. That means delivering smarter, more sustainable, and more cost-effective solutions – not just for the firm’s benefit, but for the people funding, using, and living with the outcomes of our work. These firms are innovating across three critical fronts: 1. Core innovation: materials and building technology. Breakthroughs in materials science – like self-healing concrete, photovoltaic glass, and mass timber – are redefining what’s possible. These aren’t just technical upgrades; they enable owners to achieve better performance, lower lifecycle costs, and more sustainable outcomes. 2. Design innovation: enhancing human and owner outcomes. Design is evolving to prioritize not just aesthetics, but automating tasks, and building internal knowledge. These are worthwhile pursuits. But they are not enough. experience and function. For example, schools that improve learning outcomes, hospitals that accelerate healing, and offices that boost productivity. These are not just design wins – they’re business wins for owners. AI, simulation tools, and interdisciplinary collaboration are helping firms test and refine these ideas before they’re built, reducing risk and increasing value.

Tom Godin

FIRM INDEX Croy................................................................................. 9

DeSimone Consulting Engineering.........2

MORE ARTICLES n ROBERT JONES: Why GAAP compliance matters Page 3 n MARK ZWEIG: Two kinds of firms Page 6 n TOM ROBINSON: Boots on the ground Page 8 n MATT COOPER: Power project managers with tech Page 10

See TOM GODIN, page 2

THE VOICE OF REASON FOR THE AEC INDUSTRY

ON THE MOVE COMPLEX ENGINEERING EXPERT JOINS DESIMONE CONSULTING ENGINEERING Global engineering services leader DeSimone Consulting Engineering announced that Ahmed Mantawy, SE, PE, an expert in complex structural engineering, has joined the firm’s Miami office as an associate principal. With over two decades of experience in the design of structures for complex projects across varied market sectors, Mantawy leads structural design, project management, and construction administration for different building types. He will leverage his expertise in both new construction and large-scale rehabilitation projects, working with the team to deepen DeSimone’s market presence in the South Florida market and beyond. Chairman and CEO of DeSimone Consulting Engineering, Stephen DeSimone, PE, said, “As a company that has built a reputation for innovative problem solving and creativity, we welcome Ahmed’s ability to tackle complex structural challenges on behalf of our clients. Whether the structure is for aviation, education, healthcare, stadiums, or mixed-use, he will be a critical asset to our team in the dynamic development context of Miami and South Florida.” Most recently, Mantawy managed the

structural design of several high-rise residences in Florida, including the 42-story Art House St. Petersburg and Nautilus 220, a pair of 24-story, mixed-use luxury towers in Lake Park, among other multiple mixed-use developments in Miami. His west coast project experience includes the Intuit Dome for the Los Angeles Clippers and the Loma Linda University Medical Center in California. Prior to joining DeSimone, he held senior positions at a number of firms, including time as a senior engineer focused on the analysis and design of railway, highway and pedestrian bridges. In 2018, one of Ahmed’s projects, Seaside Way Pedestrian Bridge, received the ENR ‘Best of the Best’ award in the Landscape/Urban Development Category. Mantawy began his career in his native Cario, after graduating from Ain Shams University in Cairo with bachelor’s and master’s degrees in civil and structural engineering. He also holds master’s degrees in aerospace and structural engineering and a Ph.D. in structural engineering from the University of Southern California. A licensed structural engineer in Florida and California and an Envision Sustainability Professional, he is a member of the Structural Engineers Association of Southern California.

TOM GODIN, from page 1

3. Process innovation: smarter project delivery and operations. From planning to operations, our industry is a complex web of firms, systems, and stakeholders. Process innovation must simplify and integrate this complexity – making delivery faster, more collaborative, and more transparent. Whether through digital twins, robotics, or AI-driven scheduling, the goal should be clear: better outcomes for the owner across the asset lifecycle. Innovation isn’t innovation unless it creates value for someone. And in our industry, that someone is the project owner. There’s nothing wrong with using AI to streamline proposal writing or automate internal workflows. But the innovation strategies that will define the next decade are those that start with the owner’s needs and work backward – delivering real, tangible results in the built environment. Tom Godin is a senior director at Zweig Group and the leader of the firm’s Performance Consulting practice. Contact him at tgodin@zweiggroup.com.

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THE ZWEIG LETTER AUGUST 18, 2025, ISSUE 1598

OPINION

Why GAAP compliance matters

Government contractors in AEC must understand and follow GAAP to meet compliance standards, secure contracts, and ensure accurate financial reporting.

A s government contract opportunities continue to grow for architecture, engineering, and consulting (AEC) firms, the pressure to meet federal compliance standards accelerates. One of the first hurdles many firms encounter is demonstrating a GAAP-compliant accounting system . This isn’t just a best practice; it’s a non-negotiable requirement for passing the SF 1408 Preaward Survey and securing flexibly priced contracts. Whether you’re new to government contracting or preparing for more complex awards, understanding GAAP is foundational to your Federal Acquisition Regulation (FAR) readiness.

Robert Jones, CPA, CPCM

WHAT IS GAAP? GAAP stands for Generally Accepted Accounting Principles . Specifically, we’re focusing on GAAP for companies based and reporting in the U.S. GAAP is a set of rules developed and maintained by the Financial Accounting Standards Board (FASB) to ensure that financial statements are complete, consistent, and comparable across different companies. It provides a standardized framework for the presentation of financial statements, with the FASB’s Accounting Standards Codification (ASC) serving as the single source of authoritative non-government U.S. GAAP. WHEN AND WHY GAAP COMPLIANCE IS REQUIRED. While GAAP applies to publicly traded companies and many private companies in the U.S., its relevance for government contractors is pronounced. The U.S. SEC requires publicly traded companies to file GAAP- compliant financial statements regularly. For private companies, GAAP compliance becomes essential when issuing financial statements outside the organization, particularly when these statements involve government contracts or other external reporting requirements. It’s important to note that the SF 1408 Preaward Survey of Prospective Contractor (Accounting System) requires GAAP compliance to achieve and maintain an adequate accounting system for government contracts. This foundational requirement ensures transparency and accountability for federal funds.

We often find clients contact us regarding GAAP compliance for three common reasons: 1. Loan covenants. When obtaining new or increased financing, such as a line of credit or term loan, banks frequently require reviewed or audited GAAP-compliant financial statements as a loan covenant. While thresholds vary, we typically see this requirement emerge as debt facilities or loan values approach $5 million, though many lenders will accept internally prepared or externally compiled statements below that amount. 2. Regulatory audits. As government contractors, your firm is subject to various regulatory audits, including FAR overhead audits, incurred costs proposal audits, and the SF 1408 survey (which, while technically a survey, functions as a critical assessment). All of these necessitate the adoption and adherence to GAAP as it applies to your firm. 3. Investor relations. Whether you’re considering an internal transition, a sale to outside parties, or a merger with another firm, investors – internal or external – will analyze your financial statements and expect them to be GAAP-compliant so they accurately compare with others in your industry and within their broader investment portfolios.

See ROBERT JONES, page 4

THE ZWEIG LETTER AUGUST 18, 2025, ISSUE 1598

■ Revenue recognition. Revenue recognition is a complicated topic, worthy of a separate article. In summary, ASC 606 provides specific criteria to determine if revenue is earned at a point in time or over time. It’s important to note that recognized revenue does not necessarily equal billings; the proper revenue recognized may be higher or lower than the amount on an invoice. ■ Fixed assets and depreciation. A company’s fixed assets must be accurately listed on the balance sheet with their corresponding accumulated depreciation. Book depreciation, typically the straight-line method, results in more uniform expense recognition over an asset’s life. Tax depreciation, often accelerated by the government to induce spending and defer corporate income taxes, should not be recorded in your financial books for GAAP purposes. ■ Lease accounting. ASC 842 requires companies to record their lease liabilities and related right-of-use assets on the balance sheet. It also requires the lease expense to be recognized as a straight-line amortization of the present value of all outstanding payments. Many firms record the lease expense each month without reflecting the underlying asset and liability on the balance sheet. Fortunately, specialized software can assist with this. ■ Accrued payroll, PTO, and expenses. Directly related to the matching principle, expenses are often recorded before an invoice is received or cash changes hands. Some examples include equipment or supplies received without an invoice, time worked without a payroll run, and paid time off earned but not yet used. In each scenario, the company has incurred expenses and liabilities that must be captured to accurately represent the firm’s financial position in the proper period. ■ Prepaid expenses. Also linked to matching, prepaid expenses (such as liability insurance paid for the entire year upfront) must be recorded as an asset on the balance sheet and then systematically amortized as an expense over the periods in which they benefit. Recording the entire expense in the month the check is written would distort the financial picture, overstating expenses in that initial period and understating them in future periods. ACCELERATE YOUR FIRM’S FEDERAL SUCCESS. AEC firms pursuing government contracts know that GAAP compliance is more than just an accounting practice; it’s a non-negotiable requirement. It’s also one of the core areas evaluated in SN’s FAR Readiness Assessments. If you’re unsure whether your current practices would pass a government audit, or you just want peace of mind, we can help. We’ll assist you in assessing your current processes, identifying any gaps, and getting fully FAR ready. Partnering with Stambaugh Ness means your firm can confidently meet GAAP compliance requirements, enhance financial reporting accuracy, and strengthen credibility with government agencies and financial institutions. Ready for peace of mind and sustained growth in the GovCon space? Register for our upcoming webinar GAAP Compliance for Your AEC Firm for a deeper look at this critical topic. Robert Jones, CPA, CPCM is director of Outsourced Accounting Services – GovCon at Stambaugh Ness. Connect with him on LinkedIn.

ROBERT JONES, from page 3

THE 10 GUIDING PRINCIPLES OF GAAP. While not formally codified within FASB’s ASC, these 10 basic principles clarify the primary mission of GAAP and outline what is expected of all who practice accounting. They form the essential foundation for reliable financial reporting. 1. Principle of Regularity: Requires strict adherence to established rules and regulations. 2. Principle of Consistency: Mandates the application of consistent standards throughout the financial reporting process. 3. Principle of Sincerity: Emphasizes precision and transparency in all financial disclosures. 4. Principle of Permanence of Methods: Upholds the long-term consistency in financial reporting methods. 5. Principle of Non-Compensation: Requires reporting of both favorable and unfavorable financial situations without consideration of additional compensation. 6. Principle of Prudence: Ensures that speculation does not influence financial work. 7. Principle of Continuity: Assumes the organization’s operations will continue into the foreseeable future. 8. Principle of Periodicity: Requires financial information to be reported in defined standard accounting periods, such as months, quarters, or years. 9. Principle of Full Disclosure: Commits to disclosing the complete financial situation. 10. Principle of Utmost Good Faith: Presumes honesty in all financial dealings and transactions. ACCRUAL VS. CASH BASIS ACCOUNTING. The first fundamental GAAP requirement is maintaining accrual-based books. While cash basis accounting may be acceptable for tax purposes in many situations, it is not suitable for financial statements issued outside the organization, for effective internal management, or accurate industry benchmarking. Accrual accounting recognizes revenue when it is earned and expenses when they are incurred, regardless of when cash is actually exchanged. This provides a more accurate picture of a firm’s financial performance over a period. In contrast, cash basis accounting focuses solely on when cash is received or paid out. We often see smaller businesses maintaining “hybrid” books, recognizing some transactions on an accrual basis and others on a cash basis, sometimes aligning depreciation with tax returns. However, for GAAP compliance, a consistent accrual method is essential. COMMON GAAP ISSUES FOR SMALL FIRMS: ■ Matching. The matching principle aligns revenues with their corresponding expenses within the proper period. This means that revenue earned in April should have all related expenses also recorded in April. If your income statement shows extreme peaks and valleys in operating income, it’s a strong indicator that proper matching may not be occurring.

THE ZWEIG LETTER AUGUST 18, 2025, ISSUE 1598

FROM THE FOUNDER

Two kinds of firms

Is your firm one that commands top fees and thrives, or one that will struggle to compete and keep up?

A s I have stated many times before, I’ve spent my entire 45 year post-graduate school career working in and around AEC firms. Big ones, small ones, all disciplines, growing and declining, profitable and unprofitable – I have worked for, worked in, been an owner, been on the board, and observed from afar all of these. And just this morning I had an epiphany. You can put these firms into one of two buckets. Those that get it when it comes to how to have really good fees and those that don’t.

Mark Zweig

The firms that “get it” make a lot of money. They are very profitable. They pay their owners and employees better than the typical firm in this business. Their owners are happier and their employees are, too. There is less chaos and less panic. You can feel it the moment you step into one of these company’s offices. They are just more successful. The question is, “How did they get there?” There definitely are common traits one could point to. Some of these include: 1. They have owners who expect to be successful. This is such a big part of it – owners who see nothing wrong with making money in this business and haven’t been warped into thinking it takes a vow of poverty to be in it. My personal anecdotal experience says even these people tend to fall into two pots – those who grew up in affluent families where they were simply expected to do well, and those who grew up with little to nothing and don’t ever want to live like that as adults.

2. They are specialized. Specialization not only allows you to charge more but it also helps loosen up the geographic ties that come from being one of many. Contrary to conventional wisdom, specialization is less risky than trying to do everything for everyone. Generalist firms are never the ones getting the best fees. And you don’t have to specialize in only one thing. You can be a multi- speciality firm as you get larger. 3. They pay a lot of attention to marketing and brand-building. Coca-Cola sells far more Coke products at higher prices than generic cola makers do. Why is that? Is it all because the product is better? No. It is because they have consistently outspent their competitors on marketing and advertising, and the payoff from that investment has been enormous. The same strategy works in the AEC business. But it is easier to implement here because we can identify our target clients and hammer just on them versus having to advertise to the entire world. Real “brands” in the

THE ZWEIG LETTER AUGUST 18, 2025, ISSUE 1598

AEC world can charge more for what they do because the risk on the part of the client for hiring them is reduced. 4. They drive demand for what they do beyond their ability to supply it. This is key. Always be somewhat understaffed so the salaried people work 44-46 hours a week on average and always outspend your peer companies on marketing by 50 percent to 100 percent and you have the basic formula for doing this. When demand exceeds supply, there’s no reason to get beaten down on your fee, and you don’t work for unappreciative clients or those who don’t pay their bills, either. You don’t need the work. 5. They have a very clear organization and leadership structure that is respected by all. Everyone has one and only one supervisor and they each know who that is. There are fewer meetings and committees. Decisions get made faster. Principals aren’t regularly crossing into territories that are not their domains. This minimizes conflict and keeps the attention on the clients versus internal stuff – and that helps get better fees. 6. They treat their business people as equals to their design and technical staff. Sure – you may be in the architecture, engineering, planning, land surveying, interior design, or environmental consulting business, and that is the core of what you get paid by clients to do, but that does not mean that finance, accounting, IT, marketing, business development, HR and other non-line functions are not equally important. The most successful firms understand this and don’t treat those people like second class citizens. As a group of companies we have gotten better about this over time, but poorer-performing firms still treat non-design

or non-technical people differently from the rest and it’s not the way to have a successful business. 7. There is someone in the company at a high level who can advance long-term initiatives that improve the business. These companies that can charge more and make more than their peers have someone in the company who is getting the big systems projects inside the firm done. Like implementation of a new accounting system, or a new CRM, or a new intranet that actually works. These initiatives have to be driven by someone who takes them all the way through to completion or the company will essentially be stuck. That means you can be more efficient and have more time to do a great job for your clients and get better fees. 8. They have high standards of excellence for all of their people. That means if you work there you are expected to look good, be available, be responsive, be an effective written and verbal communicator, and work well with other people. These are “musts” and not optional for those who are good designers or engineers but cannot master the requisite “soft skills.” It helps you get better fees when your people are clearly “better.” So I guess the important question is which one of these two buckets would your firm fall into? Are you consistently punching above your weight class and getting better fees than the “other guy (or gal)?” Do you sound like the companies I described above, or do you have some work to do to get there? It might be time to make some changes so you, too, can rise to the top! Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com.

THE ZWEIG LETTER AUGUST 18, 2025, ISSUE 1598

OPINION

Boots on the ground

Y ou know what they say – even the best-laid plans can go awry. What looks good on paper doesn’t always translate well on a construction site. In engineering, your staff need a practical understanding of how their designs come to life, which is why spending time in the field is so important. But how do you prepare your staff to be field ready? When your people understand not just what is being built, but how and why, they’re better equipped to adapt and solve problems ahead of time.

Tom Robinson, PE

These tips can help bridge the gap between design and construction and get your team’s boots on the ground with confidence: ■ Size matters. The size of structures in a design matters. What you see on a drawing might not accurately represent the true scale of a structure in real life. A wall may look like a simple line on paper, but a 12-foot wall might have long tiebacks. Now what are you impacting – utilities, existing structures, property lines? Paper doesn’t show vertical challenges and effects, and engineers need to understand how designs translate in the field. designing a pump station, or any drainage system, you need to ask: What’s downhill? If you’re not ready to pump anything, the consequences won’t stay on your site. Water ■ It flows downhill unless you pump it up. When

could find its way into a neighboring property, a parking lot, or someone’s basement. Always consider where your water is flowing. ■ Location, location, location. Knowing your site inside and out is critical, and that means relying on a constant, up-to-date survey. A common example is utility location. Our team might show existing utilities in the plans and design around them accordingly. But when we arrive on-site, utilities are sometimes not where they’re shown on our data. This leads to field adjustments, which can be complicated if the original placement was determined by calculations or design parameters. Understanding site conditions early helps avoid any surprises. ■ Act of God. Let’s face it, Mother Nature will always have the final say. And when she does, the best thing you can do is prepare for the unexpected.

THE ZWEIG LETTER AUGUST 18, 2025, ISSUE 1598

A torrential downpour on even the most well-planned site can quickly cause significant damage. At one of our projects, a contractor chose not to install a temporary pipe to divert water while installing the new drainage system. When a storm hit, the site flooded, and they struggled to keep sediment from leaving the site. Had they followed the sequencing in the plans, they would’ve been better prepared. Deviating from the plan without understanding the risks can lead to unnecessary setbacks. However, if you do need to deviate from the design in the field, here are a few tips to consider: Get a different perspective. Erosion control is another area where field conditions rarely match textbook expectations. On paper, a silt fence might look like the perfect solution; but we’ve also seen silt fences fail. That’s why it’s worth putting those contingencies in place (such as additional BMPs, for example), to make sure your site stays buttoned up. You also can’t rely on sunny-day inspections alone. Don’t be afraid to get wet. Go out during a rain event and see how your erosion controls perform. This gives you a completely different perspective than a plan set ever could. Adaptability is key. Field conditions change, and designs don’t always perform as intended. We experienced this scenario on our team’s downtown greenspace improvements project in the city of Smyrna, Georgia – we installed a sediment curtain in the pond to control runoff, but it ended up preventing the pond from properly flushing, exacerbating its containment issue. Sediment built up, and the water quality suffered. Similarly, at our Mulberry Rock Park project in nearby Dallas, Georgia, retrofits designed to manage sediment became clogged. In both cases, the fix wasn’t on the original plan. Sometimes, you must be able to acknowledge a design isn’t performing how intended, adapt, and make a change to get the desired result. ■ I’m watching you. Residents (especially those angry about a project) often look for a reason to raise concerns during construction. If sediment from your site ends up in someone’s pond, they’ll go upstream to figure out where it came from. And if it’s your project, you could find yourself in hot water with legal battles. So, how do you avoid this? Establish a public engagement strategy. Residents want to know how a project affects their property. If you don’t provide a clear narrative, they’ll create one. This is why communication is key. Hosting a public information open house (PIOH) gives you a chance to present the project’s goals, address concerns, and build trust with the community. Keep your information clear and consistent. Whether it’s a spokesperson or your project team, make sure everyone is delivering the same message. Before any public meeting, hold a pre-meeting to walk through the project and align talking points. This strategy was critical for our Croy team while working on the high- profile Windy Hill Boulevard widening project, also in

the city of Smyrna. We held internal prep sessions to ensure we were on the same page before engaging with the public. Consistency builds credibility. ■ Spend to save. Cutting costs upfront leads to bigger expenses down the road. If you don’t have money to build it right the first time, you don’t have money to build it right the second time. It’s our job to serve as trusted advisors, helping clients invest wisely in long-term solutions. Take a lift station, for example. Choosing cheaper mechanical equipment may save money in the short-term, but it could require annual maintenance increasing the cost in the long-term. I recommend identifying where the breakpoint is that helps guide your client to the best long- term product. Since they own these projects for decades, smart investments on routine maintenance can preserve a project’s lifespan. “What looks good on paper doesn’t always translate well on a construction site. Your staff need a practical understanding of how their designs come to life, which is why spending time in the field is so important.” ■ Timing is everything. Proper sequencing can make or break a project, from design through construction. Successful projects are well planned, and that means spending time upfront to nail down the schedule. In construction, it’s critical to do tasks in the right order. For example, if you don’t lay conduit before installing the hardscape, you’ll have to bore underneath it later instead of being able to open cut for the installation. It’s our responsibility to work closely with contractors to keep the schedule on track and ensure the timing of work is properly coordinated. ■ Google Maps causes mishaps. While Google Maps Street View can be a helpful tool that saves time, an actual site visit pays dividends. For example, walking the site could reveal a manhole covered in pine straw that you didn’t know was there. If you’d relied solely on aerial or street view, you might’ve planned to lay something in that exact spot that would’ve impacted it. That’s why our firm hosts lunch and learns for all staff members that includes site visits to active projects. Seeing a project in-person gives them a clearer understanding rather than only viewing it on a screen or in an office. Google Maps is a great resource, but nothing replaces boots on the ground. Designing a project is only half the battle. Getting your staff field-ready makes all the difference. When they understand not just what is being built, but how and why it’s being built a certain way, they’re better equipped to adapt and solve problems ahead of time. Tom Robinson, PE serves as the construction engineering and inspection division manager at Croy. He can be reached at trobinson@croyeng.com.

THE ZWEIG LETTER AUGUST 18, 2025, ISSUE 1598

OPINION

AEC firms face a middle management gap, but technology can empower PMs, boost efficiency, and accelerate talent development. Power project managers with tech

Technology update brought to you by

T he AEC industry has been quietly dealing with a structural challenge for more than a decade: A middle management gap. The roots of the issue go back to the Great Recession of 2008. Starting that year, there was an exodus of talent from the AEC industry, particularly among architects. Over only four years, the number of employees at engineering firms declined by more than 10 percent – a big drop. However, for architecture firms, the decline was an astounding 30 percent.

Matt Cooper

The impact is visible in the chart on page 10, where employment across architectural services and engineering services is indexed to 2003. Young professionals in the industry were hit particularly hard. Many left the industry and never returned. While many firms have healthy senior leadership at the top and plenty of talent from those early in their careers, there aren’t enough experienced project managers, project architects, project engineers, studio leaders, and other mid-level staff. (The chart shows that while employment in engineering recovered and surpassed 2008 levels,

employment in architecture has never fully recovered. It’s a deeper challenge for discussion in a different article.) This “hourglass” shaped tenure structure puts pressure on firms and their employees – there’s an insufficient bridge between vision and execution. For firms to be successful, they need to find ways of making sure their PMs are as efficient, productive, and supported (retention!) as possible. They need the right business technology – not to replace PMs, but to empower them. Here are three ways technology can help:

THE ZWEIG LETTER AUGUST 18, 2025, ISSUE 1598

1. Clear the fog with real-time project visibility. Many PMs are operating with limited visibility for too much of the project lifecycle. Key data about budgets, staffing, and performance may sit in disconnected systems and/or arrive via Excel sheets weeks after the fact. Or, firm owners may be hesitant to share important project-level financial information with PMs. This lack of transparency makes it more difficult for PMs to deliver effectively. It also might lead them to be less engaged or feel true ownership of the outcomes. Empowering PMs with complete, real-time data enables them to catch issues and course-correct early, preventing projects going off the rails. This is critical to the success of any individual project and ultimately the firm. Modern firm management platforms give PMs real- time visibility into their projects. Dashboards update automatically as timecards and expenses are submitted/ approved, and as invoices are sent and paid. Instead of chasing data, PMs can spend their time analyzing and acting on it. The result is more projects delivered on-time and on-budget, and a better client experience. “For firms to be successful, they need to find ways of making sure their PMs are as efficient, productive, and supported (retention!) as possible. They need the right business technology – not to replace PMs, but to empower them.” 2. Turn PMs into mini-CFOs with integrated financial management. Most architects and engineers don’t have financial backgrounds. There’s a common trope I hear: “There was no business class during school.” However, PMs in the space are often expected to manage substantial project budgets and drive real financial results. Technology can help bridge the gap. Integrated financial/project management systems can translate complex financials into PM-friendly dashboards. PMs can quickly see burn rates, earned value, budget variances, and profitability forecasts in plain language. By simplifying financial oversight, technology allows PMs to think like mini-CFOs for their projects, even if they never took an accounting class. 3. Minimize the morass by automating the admin. Hours can disappear as PMs get stuck in administrative quicksand. Chasing timesheets, cobbling together status updates, pulling together invoices; the time adds up. Workflow automation can take a large percentage of this burden off PMs. For example: Alerting them when projects are going over contract or budget

Enabling project progress and time/expenses data to flow seamlessly into invoices Flagging clients behind on payments Making staffing recommendations for projects And AI enhancements will drive even greater efficiencies. The effect: PMs get back dozens of hours per month that they can reinvest into delivering great projects and supporting more junior staff. 4. Bonus: Upskilling the next generation. While the “hourglass” tenure phenomenon can be improved by empowering PMs, there is another opportunity: accelerating the career development of junior staff. Firm culture, professional development programs, etc. are essential elements to deliver new skills to junior employees. But technology is an often-overlooked tool that supports development. Learning can be faster when junior staff can eliminate admin time through automation, when they have enough context and information, and when they are supported by strong technology- buttressed processes. Success for AEC firms will increasingly be defined by not just who has the most talent, but who can leverage that talent most effectively. Especially for an industry still seeing demographic impacts from the Great Recession, business technology is not a nice-to-have. Technology fosters the success and development of today’s junior/midlevel staff and tomorrow’s firm and industry leaders. Matt Cooper is CEO of BQE Software, Inc. Connect with him on LinkedIn.

THE ZWEIG LETTER AUGUST 18, 2025, ISSUE 1598

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