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A&E Firm Diagnostic for Owner-Led Firms
The A&E firm diagnostic is Schematic Design, the first paid phase of The Next Phase Method. Rodney McNabb reviews how your firm prices, bills and staffs work today, at a fixed fee, on Microsoft Teams.
Most owners sense something is off but cannot see where. Margins slip, invoices go out late, and every fix lands back on your desk.
Request a meeting. In one free call, we'll tell you whether a diagnostic fits your firm right now.
Why the Diagnostic Comes First
On a building project, schematic design tests options before anyone draws construction documents. AIA Document B101 puts schematic design first for the same reason. The diagnostic does the same for your firm: no system gets built until the evidence points to the right one.
What We Review: Financial Management, WIP and Capacity
Financial statements: three fiscal years of profit and loss and balance sheet, plus 12 months of monthly results
Work in progress and receivables: your current WIP schedule and aging reports
Billing: how billing milestones tie to project phases
Staffing: capacity and utilization
Pricing: how your firm estimates and prices work
Interviews: with you and the people who touch money or scheduling, such as project managers and your office manager
For architecture firms, the review centers on architecture firm financial management: fee proposals, billing milestones, a full WIP review and the architecture firm KPIs you track today. For engineering firms, the focus shifts to task budgets, change approvals and capacity. See the architecture firm business consultant, engineering business consultant, interior design business consultant and specialty design consultants pages.
What You Receive
A written diagnostic report
A ranked list of priorities
Options for the first system to build
You pick one option. Your pick becomes the scope of a separate Design Development proposal.
What We Need From Your Firm
After you sign, you receive a records checklist. Send the records through a secure client folder within five business days.
Financial statements: three full fiscal years plus the current year to date
Work in progress and receivables: your current WIP schedule and aging reports
Projects: recent invoices, contracts or fee proposals, and your current templates
Time and staff: 12 months of timesheet hours, plus a staff list with billing rates
We also need three things from the people at your firm:
One decision-maker, usually the owner
One staff member who will own the new process
Enough staff time to test and run each change
How Fees Work
The diagnostic carries a fixed fee, stated in a written proposal you approve before any paid work begins. Your proposal also states the payment schedule.
See how fixed-fee A&E consulting compares with other advisors.
How the Diagnostic Ends
The diagnostic ends when you accept the findings. You then approve a Design Development proposal or stop with the report in hand. Either way, you are under no obligation to continue.
Start Here
Take the 7-Minute Firm Health Check to see where your firm still depends on you, or request a meeting. See who we help.
Frequently Asked Questions
What is an A&E firm diagnostic?
A fixed-fee management review of how an architecture or engineering firm prices, bills and staffs its work. Next Phase A&E delivers it as Schematic Design, ending with a written report, ranked priorities and options for the first system to build.
What does a WIP review include?
A WIP review compares the fee earned on each active project with the amount billed, so you see which projects are underbilled or overbilled. We agree on the WIP definition with your accounting advisor before we measure.
Is the diagnostic an audit?
No. The diagnostic is a management review, not an audit, a valuation or a tax review.
How long does the diagnostic take?
Timelines depend on the size of your firm. Your written proposal sets the schedule before work begins.
How is the diagnostic priced?
A fixed fee for the agreed scope, stated in a written proposal you approve first. Pre-Design, before the proposal, carries no fee. Your proposal states the payment schedule.
What does my team need to do?
Share the listed records within five business days of signing, then give your project managers and office manager time for short interviews.
Am I obligated to continue after the diagnostic?
No. Design Development has its own written proposal. You decide whether to move forward.
Why is the diagnostic called Schematic Design?
On a building project, schematic design tests options before anything gets drawn in detail. The diagnostic plays the same role for your firm, and every phase of The Next Phase Method takes its name from a design phase.