Blog
Practical writing on multipliers, utilization, realization, and the operating decisions that keep AEC firms profitable.
Overhead rate is indirect expenses divided by direct labor. Most A/E firms run 1.4–1.8. Here's what it's actually made of, why you can't cut your way out of a bad one, and how it sets your break-even multiplier.
Read articleUtilization is billable hours divided by available hours. Most firms target 60–65% firm-wide — but that number only means something when you know the role mix, the denominator, and the multiplier sitting next to it.
Read articleNet multiplier is net revenue divided by direct labor. Most A/E firms target 3.0. Here's how to calculate it, the pass-through mistake that inflates it, and what your number should actually be.
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