Even well-run architecture and engineering firms can experience ongoing cash flow pressure. It’s a challenge that rarely gets much airtime, yet it affects practices of every size, even those with strong pipelines and talented teams.
In a recent episode of the Blueprint Collective, George Panos, a seasoned CFO and CEO in the A&E industry and Principal of George Panos Consulting, shares why cash flow stress is rarely about a lack of work. More often, it comes down to the financial habits that shape how work is priced, tracked, billed, and discussed.
Below, we unpack the four mistakes George sees most often in A&E practices and why addressing them can make cash flow far more predictable and far less stressful.
Mistake #1: Firms don’t price the true value of their work.
Many cash flow challenges start much earlier than invoicing. They begin at the starting point, where projects are costed and priced.
In the A&E industry, it’s common to underestimate the time, complexity, and risk involved in delivering work, especially on longer or more ambiguous projects. When fees don’t reflect the real effort required, firms quietly absorb the difference through unpaid hours and shrinking margins.
George sees this as one of the most widespread issues across the industry.
“I don’t think firms cost projects correctly or price the value that they bring. I think that’s a real common problem across not only Australia, but the world.” —George Panos
This isn’t about being aggressive with fees. It’s about understanding the true cost of delivery and recognising the value the firm brings. Without that foundation, even busy practices can struggle to convert work into healthy cash flow.
Mistake #2: Invoicing and reporting don’t keep pace with the work being done.
Even when projects are priced reasonably, cash flow can suffer if invoicing and reporting lag behind delivery.
As firms grow, work often moves faster than internal systems can track it. Scope evolves, effort increases, and billing becomes disconnected from reality. Without clear visibility into what’s been delivered, invoices go out late or don’t reflect the full value of the work.
George often sees under-invoicing tied directly to gaps in reporting and tracking.
“You probably don’t have the correct reporting system, which means you’re not tracking what you do closely enough, depending on your size. And that’s actually governed by the fact that you’re not invoicing enough.” —George Panos
Strong cash flow depends on visibility. When firms can clearly see what work has been completed and how projects are performing, invoicing becomes more consistent and far less reactive.
Mistake #3: Leaders delay conversations about payment longer than they should.
For many architects and engineers, asking for payment feels uncomfortable. There’s often a fear that chasing invoices could damage client relationships or create unnecessary tension.
In reality, George finds the opposite tends to be true. Clients often respect clarity and consistency, especially when expectations are set early.
“The bizarre thing is that your client will actually respect you more, because if they think you’re an easy target, they won’t pay you. Sometimes they’ll only pay the people who ask.” —George Panos
When firms avoid these conversations, invoices slip further down the priority list, particularly if clients are managing their own cash flow pressures. Empowering project leaders to raise payment conversations early, rather than leaving everything to finance teams, can make a meaningful difference.
Mistake #4: Firms treat cash and borrowing emotionally rather than strategically.
Another pattern George sees frequently is an aversion to borrowing, even when debt could be used sensibly to support the business.
Many A&E firms aim to hold large cash reserves to feel secure. While this can provide peace of mind, it can also restrict flexibility and put unnecessary pressure on cash flow during slower periods.
George points out that this caution is out of step with how most businesses operate.
“There’s a general rule that businesses can carry 20–30% debt against their assets. That’s what most normal businesses run with. But a lot of architects keep six to nine months’ worth of cash.” —George Panos
When leveraged properly, debt isn’t a sign of weakness. It can help smooth timing gaps, support growth, and reduce stress when revenue fluctuates.
Turning Financial Stress Into Financial Confidence
Cash flow challenges aren’t a sign of a poorly run firm. More often, they’re the result of habits that develop over time around pricing, tracking, invoicing, and financial decision-making.
When firms start valuing their work accurately, improve visibility through better reporting, have clearer conversations with clients, and approach cash more strategically, pressure begins to ease. Finance teams spend less time firefighting, project leaders feel more confident, and leadership teams can make decisions with greater clarity.
As George reinforces throughout this conversation, numbers aren’t there to judge a firm. When used well, they become a tool to guide better decisions and build a more resilient practice.
About The Blueprint Collective
Hosted by Scott Bampton, Product Marketing Manager at Total Synergy and former Operations Lead at national architecture firms, The Blueprint Collective is a curated podcast featuring candid Q&A-style conversations with architects, engineers, and creative leaders redefining how we design, deliver, and lead.
Filmed online, the series cuts through industry polish to focus on what matters: the ideas and people driving progress. Want to join us on the podcast? Register your interest here.
