Why on-time and on-budget is still so hard to hit for AEC firms

Discover why AEC firms struggle with on-time, on-budget delivery and how to overcome it.

Every firm in architecture, engineering, and construction (AEC) knows the pressure of delivering on time and on budget. Clients expect it, margins depend on it, and reputations are built on it. 

But even the most capable firms often struggle to meet both metrics consistently.  

According to the latest AEC Inspire Report, 67% of projects are delivered on or ahead of schedule, and 64% are delivered on or under budget.  

For firms looking to move into that majority, it requires looking beyond project management discipline alone and focusing on the resourcing decisions that shape every project from the start. 

Where project planning and resourcing disconnect 

Even firms with mature project management practices run into forecasting and resourcing challenges. The Inspire Report found that just one in four firms believe their project planning and resource management are closely connected. Almost a third admit to some level of disconnect between the two functions. 

 That disconnect creates inefficiencies and uncertainty. Without visibility into real-time resource availability, project managers are left making reactive choices that often compromise both timelines and budgets. 

The resourcing challenge 

Resourcing is at the center of the struggle. Firms across the industry report that hiring, retaining, and securing quality talent remain their most pressing challenges. At the same time, many still lack the right tools and processes to forecast their needs. Half of firms say they struggle with adoption of resource management platforms.  

Without reliable systems to integrate data from business development, project planning, and finance, many are left making decisions based on instinct instead of insight. The risk is twofold: overstaffing that erodes margins or under-hiring that leads to missed deadlines. 

How resourcing drives delivery outcomes 

The link between resources and outcomes is direct. Firms say that experience and skills are by far the most critical factors in assigning people to projects, outweighing considerations like education or tenure. That means success hinges on the ability to get the right people in the right roles at the right time. The issue is when firms cannot see the full picture of their backlog, pipeline, and capacity. They then struggle to allocate effectively. The result is uneven delivery: strong performance on some projects, but persistent challenges in consistently achieving on-time and on-budget outcomes. 

Forecasting as the difference-maker 

This is why forecasting has become such a priority. 70% of firms identify forecasting as a critical feature in their resource management tools. Firms that can connect their business development pipeline with real-time resource availability can anticipate needs before they become urgent. Instead of reacting to staffing shortages after winning new work, they can plan ahead, build capacity, and deliver with confidence. 

Technology and data as enablers 

Technology and data are enabling this shift. The Inspire Report shows that most firms consider themselves at least somewhat data-driven, but many still face gaps in integration and adoption. The firms that move beyond siloed tools and establish integrated, purpose-built systems for resourcing and forecasting are the ones most likely to improve their delivery metrics. By replacing guesswork with visibility, they not only increase efficiency but also create a foundation for growth. 

Looking ahead 

The industry already shows encouraging progress, but there’s still work to be done by many firms. Addressing the connection between resourcing decisions and delivery performance gives firms the opportunity to close the remaining gap.  

With better forecasting, integrated tools, and a clear view of talent capacity, more firms can deliver consistently, protect profitability, and position themselves for the next phase of growth. 

To learn more about what top AEC firms are thinking about the future of work, read the full 2025 Inspire Report.