{"id":25016,"date":"2025-08-06T01:16:18","date_gmt":"2025-08-05T15:16:18","guid":{"rendered":"https:\/\/totalsynergy.com\/?p=25016"},"modified":"2025-08-06T02:21:23","modified_gmt":"2025-08-05T16:21:23","slug":"how-to-spot-and-fix-revenue-leakage-in-your-projects","status":"publish","type":"post","link":"https:\/\/totalsynergy.com\/how-to-spot-and-fix-revenue-leakage-in-your-projects\/","title":{"rendered":"How to Spot and Fix Revenue Leakage in Your Projects"},"content":{"rendered":"\n\t
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Revenue leakage is one of those issues that can quietly chip away at profitability, often without anyone noticing until it’s too late. For architecture and engineering firms, this usually shows up as scope creep, underquoting, or team members doing extra work without charging for it.<\/p>\n

In this interview, Josh Stone<\/a>, engineer, coach & head of Ignite Coaching<\/a>, and member of the Blueprint Collective<\/a>, breaks down what causes revenue leakage, how to spot it early, and the habits successful firms build to protect their margins and support their teams.<\/p>\n

What exactly is revenue leakage, and why does it matter?<\/h3>\n

JS<\/strong>: Revenue leakage is when your team delivers extra work without charging for it. That could be a small design tweak or an entire added scope. It usually happens when changes aren\u2019t tracked, proposals are underquoted, or the team says yes without raising it as a variation. The result is lost profit and increased pressure on your team.<\/p>\n

What warning signs should firms look out for?<\/h3>\n

JS<\/strong>: A stressed or overworked team is often the first clue. If a project suddenly feels out of control, it\u2019s worth asking why. You might find that a client made a request directly to a team member and no one flagged it. These seemingly small requests can quietly derail your budget and schedule.<\/p>\n

Is revenue leakage always the client\u2019s fault?<\/h3>\n

JS<\/strong>: Not at all. Most clients don\u2019t realise they\u2019re asking for more than what was agreed. They\u2019re just trying to move things along. But if your team doesn\u2019t know how to respond or feels uncomfortable pushing back, your firm ends up covering the cost.<\/p>\n

How do people-pleasing habits contribute to the problem?<\/h3>\n

JS<\/strong>: A lot of technical staff want to be helpful. They\u2019re focused on doing great work, not having tough conversations. That\u2019s why firms need to give their teams scripts and support. Something as simple as, \u201cThat sounds like a change in scope. I\u2019ll check with my PM,\u201d can go a long way in protecting time and budget.<\/p>\n

How can firms empower staff to manage scope conversations confidently?<\/h3>\n

JS<\/strong>: Start by making sure everyone understands the agreed scope. Use kickoff meetings and delivery check-ins to keep it clear. Then put systems in place for flagging changes. Your team doesn\u2019t need to say no. They just need a process that allows them to escalate it to the right person.<\/p>\n

Where does revenue leakage usually happen?<\/h3>\n

JS<\/strong>: I usually see three main areas:<\/p>\n

    \n
  1. Mid-project scope creep<\/strong>: When clients ask for more work and it\u2019s not raised as a variation.<\/li>\n
  2. Proposal underquoting<\/strong>: When firms keep fees low to stay competitive, even as scope expands.<\/li>\n
  3. Lack of oversight<\/strong>: When team members do extra work without the business owner or PM knowing.<\/li>\n<\/ol>\n

    What should firms do when they\u2019re tempted to underquote just to win work?<\/h3>\n

    JS<\/strong>: It\u2019s risky. Even if you win the job, you\u2019re starting at a loss. If you believe in the value you bring, price accordingly. Clients respect clarity and confidence. They will pay more for firms that back themselves. Discounting can be strategic, but it should never be the default.<\/p>\n

    Is there ever a good reason to reduce fees?<\/h3>\n

    JS<\/strong>: Yes, but only when it\u2019s intentional. For example, you might reduce fees on the first stage of a legacy project to get your foot in the door, but plan to make it up later. It has to be a decision based on long-term strategy, not fear of losing the job.<\/p>\n

    What simple habits help firms catch and prevent leakage?<\/h3>\n

    JS<\/strong>: There are four things I recommend:<\/p>\n

      \n
    1. Track<\/strong> scope creep consistently and talk about it openly as a team.<\/li>\n
    2. Audit<\/strong> timesheets every week so you know where time is going.<\/li>\n
    3. Review<\/strong> project financials weekly including fees, hours, WIP, and invoicing.<\/li>\n
    4. Address<\/strong> people-pleasing tendencies and support your team to speak up early.<\/li>\n<\/ol>\n

      What\u2019s one first step firms can take today?<\/h3>\n

      JS<\/strong>: Start with weekly project reviews. Look at where time is being spent and ask your team why. If you catch scope changes early, you can still have a fair, timely conversation with the client. Wait too long, and those conversations get harder and more expensive.<\/p>\n

      Final Thoughts<\/h2>\n

      Revenue leakage doesn\u2019t just affect profits. It creates stress, strains client relationships, and wears down teams. But it\u2019s avoidable. With strong internal systems, better visibility, and a culture that supports confident, respectful conversations, firms can take control of their scope and protect their bottom line.<\/p>\n

      Grab Josh Stone\u2019s New Book: The Profitable Engineering Consultant<\/h2>\n

      Josh\u2019s new book, The Profitable Engineering Consultant<\/a>, is a field-tested framework that helps engineering consultancy owners go from a Technician Business Owner to a Conductor Business Owner and right on up to the ultimate: a Lifestyle Business Owner.<\/p>\n

      \"The<\/a><\/p>\n

      Through the Boardroom Coaching Program, Josh has helped 116+ consultants turn every $1 they spend with me into $12, all while creating a business that runs without them. Learn more and order your own copy here<\/a>.<\/p>\n

      About Josh Stone<\/h2>\n

      Josh is a business coach, engineer and former consultancy owner who has firsthand experience in what it takes to grow a business \u2013 because he\u2019s done it himself. He spent nearly a decade as a director and shareholder of a $3M engineering consultancy that grew to a $30M engineering, town planning, surveying, and architecture consultancy with multiple offices along Australia\u2019s east coast.<\/p>\n

      \"Josh<\/p>\n

      Over this period, Josh learnt what to do (and what not to do) to grow a successful, profitable and sustainable consultancy.<\/p>\n

      After selling his shareholding and exiting the business, Josh founded his Boardroom coaching program and now works exclusively with engineering, town planning, surveying, and architecture consultancy owners, helping them to grow to $10M and beyond.<\/p>\n

      About Ignite Coaching<\/h2>\n

      Ignite Coaching, led by Josh Stone, is a coaching and advisory business that helps engineering, town planning, surveying and architecture consultancies increase revenue, make more profit and run more efficient and sustainable businesses.<\/p>\n

      Josh is a business coach, engineer and former director and shareholder of a $3M engineering consultancy that grew to a $30M engineering, town planning, surveying, and architecture consultancy with multiple offices along Australia\u2019s east coast.<\/p>\n

      At Ignite Coaching, we provide a step-by-step blueprint that will help you build a $10M+ per year consultancy that is profitable, successful and a business that you can be proud of.<\/p>\n

      No matter where you\u2019re at on your journey, we have a pathway and proven strategies to get you to that next level.<\/strong><\/p>\n