What is the average project value for an engineering firm?

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How do engineering firms define and calculate project value?

Project value in engineering firms represents the total contract worth or monetary value of a project, typically defined during the bidding or proposal phase.

Engineering firms calculate project value by adding up construction costs, design and management fees, material costs, and in some cases, lifecycle and operational costs for complex or long-term projects. This total reflects the lump sum or contractual fees required to deliver the specified engineering services or works.

Value engineering methodologies are often applied to maximize project outcomes relative to resources invested. Firms use cost-benefit analyses and benchmarking against similar projects to ensure they're delivering optimal value. The calculation may also incorporate benefits to stakeholders, project scope, and added value through innovative or sustainable design approaches.

For engineering consultancies, project value goes beyond just the direct cost—it includes the functional outcomes and tangible benefits delivered to the client. This comprehensive approach helps firms position their services competitively and justify their fees in the marketplace.

What is the typical value of projects delivered by engineering firms?

The average project value varies significantly by region and market, but recent UK data shows an average of approximately £37 million per contract among top engineering consultancies.

This figure comes from over £52 billion in projects awarded across 1,400 contracts to the top 50 civil engineering consultancies in the past year. However, this average is heavily influenced by a small number of very large infrastructure projects that push the mean value upward.

In the global engineering market, project values span an enormous range. The Architecture, Engineering, and Construction (AEC) market was worth $16.3 trillion in 2025, encompassing everything from small-scale fit-outs under $1 million to multi-billion dollar mega-projects. Over the past 12 months, leading engineering firms have received contracts ranging from £1 million to multi-billion dollar scales, with the largest consultancies capturing the upper-tier contracts.

For a new engineering firm owner, understanding these benchmarks is essential for setting realistic revenue targets and identifying which market segment to pursue based on your firm's capabilities and resources.

What is the median project value and how does it compare to the average?

The median project value represents the midpoint where half of all projects are valued above and half below, and it typically sits well below the average in engineering markets.

This difference occurs because project value distribution in engineering is highly skewed—a small number of extremely large projects (in the hundreds of millions or billions) pull the average upward, while the majority of projects fall into the small to medium range. The median provides a more accurate picture of what a "typical" project actually looks like.

For example, while the UK average is £37 million, the median is likely in the single-digit millions or lower. This means that most engineering firms handle projects considerably smaller than the headline average suggests. The median is generally considered a more robust measure for understanding project size distribution because it isn't distorted by outliers.

When you're starting an engineering firm, focus on the median rather than the average to set realistic expectations. Most of your early contracts will likely cluster around or below this midpoint value, with opportunities for larger projects developing as your firm builds reputation and capacity.

How does project value differ across engineering disciplines?

What is the distribution of project values in engineering?

Engineering project value distribution follows a distinct pattern where small projects dominate by count but contribute minimally to total revenue.

Small projects under $1 million make up the majority of contracts by number but represent only a small percentage of sector revenue. These projects are essential for maintaining steady cash flow and building client relationships, but they don't drive major growth. Medium projects between $1 million and $25 million form the substantial middle ground in most firm backlogs, providing consistent revenue and manageable risk profiles.

Large projects exceeding $25-50 million are fewer in number but contribute a disproportionate share of sector revenue. For top engineering firms, 60-80% of annual revenue typically comes from just the top 10-20% of projects by value. This concentration means that securing even one or two large contracts can transform a firm's financial performance for the year.

The distribution is highly skewed, with only a minority of contracts falling into the large-project category. For new engineering firm owners, this means building a pipeline that balances numerous smaller projects for stability with strategic pursuit of larger contracts for growth.

What are the most common contract sizes awarded recently?

Contract sizes awarded to engineering firms in the past 12 months span an enormous range, from £1 million to multi-billion dollar scales.

The largest engineering consultancies have received the lion's share of upper-tier contracts, with major infrastructure, transportation, and industrial projects commanding the highest values. In the UK alone, the top 50 civil engineering firms secured over £52 billion in projects across 1,400 contracts, indicating strong demand across multiple size categories.

Most common contract sizes for mid-sized engineering firms fall in the $2-15 million range, representing projects like commercial building systems, mid-scale industrial work, and smaller infrastructure improvements. These contracts are frequent enough to maintain steady revenue while being manageable in terms of resource requirements and risk exposure.

For smaller or newly established engineering firms, typical initial contracts range from $100,000 to $2 million, often involving specialized services, sub-consulting work, or niche technical expertise. Building a track record with these smaller contracts is the foundation for eventually competing for larger projects.

You'll find detailed market insights in our engineering firm business plan, updated every quarter.

How does project value vary by client type?

What factors drive project value in engineering work?

Multiple factors influence whether an engineering project commands higher or lower values, with technical complexity being the primary driver.

• Technical complexity and specialization: Projects requiring advanced engineering analysis, specialized expertise, or cutting-edge solutions command premium pricing. Complex structural designs, innovative sustainable systems, and projects pushing technological boundaries justify higher fees.
• Geographic scope and location: Urban and developed market projects typically carry higher values due to increased land costs, regulatory complexity, and stakeholder coordination requirements. International projects add layers of complexity through currency considerations, local regulations, and logistics.
• Funding source and procurement method: Well-funded clients (government agencies, large corporations, development banks) typically award larger contracts. Public-Private Partnerships (PPPs) and design-build contracts often reach higher values than traditional design-bid-build approaches.
• Regulatory environment and compliance requirements: Projects in heavily regulated industries (nuclear, healthcare, transportation) or environmentally sensitive areas require extensive documentation, analysis, and compliance work, increasing project value. Environmental impact assessments and sustainability certifications add scope and cost.
• Integration of digital innovation and sustainability: Projects incorporating Building Information Modeling (BIM), digital twins, smart systems, renewable energy integration, or advanced sustainability features command higher values due to the specialized knowledge and technology required.
• Project duration and phasing: Multi-year projects with complex phasing, long-term lifecycle considerations, or ongoing operations and maintenance components reach higher total values than single-phase, short-duration projects.
• Stakeholder complexity: Projects involving multiple stakeholders, public consultation processes, or multi-party coordination require additional management resources and expertise, justifying higher fees.

This is one of the strategies explained in our engineering firm business plan.

How does project value differ across geographic regions?

Geographic location significantly impacts engineering project values, with developed and urbanized markets commanding the highest average values.

North America, Europe, and parts of Asia-Pacific feature the highest project values due to robust infrastructure investment, industrial development, and mega-project initiatives. These regions have established engineering markets, stringent regulatory frameworks, and clients willing to pay premium rates for quality and innovation. Urban centers within these regions, particularly major metropolitan areas, see even higher values due to complexity, land costs, and dense stakeholder environments.

Developing regions often feature lower average project values, though this varies significantly. Major infrastructure projects funded by international development banks or government infrastructure programs can boost the mean substantially. Markets in Southeast Asia, Latin America, and parts of Africa are seeing growing engineering investment, with values increasing as economies develop and infrastructure needs expand.

Regional variations also reflect local labor costs, material availability, regulatory requirements, and market maturity. A civil engineering project in London or New York will carry a significantly higher value than a similar scope project in a secondary city in a developing market, even after adjusting for purchasing power parity.

For engineering firms considering geographic expansion, understanding these regional differences is crucial for pricing strategies, resource allocation, and market entry decisions.

What has been the trend in project value over recent years?

Average engineering project values have shown modest but steady growth over the past 3-5 years, driven primarily by construction inflation and expanding project scope.

The trend reflects multiple factors including rising material and labor costs, increased integration of digital technologies (BIM, smart systems, IoT), and growing emphasis on sustainability and lifecycle considerations. Projects now routinely include requirements for energy efficiency, carbon reduction, resilience planning, and digital infrastructure that weren't standard five years ago, expanding scope and value.

However, the growth pattern has been uneven across project categories. Large-scale public infrastructure projects have grown significantly in value, supported by government stimulus programs and infrastructure investment initiatives globally. Meanwhile, private sector project growth has been more moderate, with some market uncertainty leading to a bifurcation—large, well-funded projects proceeding at increased scale, while smaller private sector projects remain price-sensitive.

The engineering consulting market has also seen consolidation, with larger firms capturing an increasing share of high-value projects. This concentration has contributed to rising average values at the top end of the market while the median project value has grown more slowly.

Looking forward, continued emphasis on climate adaptation, digital transformation, and aging infrastructure replacement suggests project values will continue their upward trend, particularly for firms offering specialized expertise in these areas.

What portion of firm revenue comes from large projects?

For most engineering firms, a disproportionate share of annual revenue—typically 60-80%—comes from just the top 10-20% of projects by value.

This concentration pattern reflects the economics of engineering consulting, where large projects deliver substantial fees while smaller projects, though more numerous, contribute relatively modest individual revenue amounts. A single $50 million infrastructure project generates more revenue than fifty $500,000 projects, with better resource utilization and economies of scale.

The revenue concentration varies by firm size and specialization. Boutique firms focusing on niche services may have more evenly distributed revenue across projects, while large multidisciplinary consultancies typically show high concentration. Firms pursuing large public sector infrastructure work often depend heavily on just a handful of major contracts for the majority of their annual turnover.

This concentration creates both opportunity and risk for engineering firms. Landing large projects can transform financial performance and provide multi-year revenue visibility. However, dependence on a few large clients or projects creates vulnerability to project delays, scope changes, or contract losses.

Successful engineering firms balance their portfolios, maintaining steady smaller projects for cash flow stability while strategically pursuing larger contracts for growth and profitability. The optimal mix depends on your firm's risk tolerance, resources, and market positioning.

We cover this exact topic in the engineering firm business plan.

What are the most reliable benchmarking sources for project value data?

Several industry databases and benchmarking tools provide reliable tracking of engineering project values across disciplines and regions.

• Engineering News-Record (ENR): The industry's leading publication provides comprehensive global rankings, project databases, and market analysis. ENR's Top 500 Design Firms and Top 600 Specialty Contractors reports offer detailed revenue and project value data across disciplines and regions.
• Barbour ABI: Specializing in UK and European markets, Barbour ABI tracks construction and engineering projects from planning through completion. Their database captures contract values, client types, and market trends, making them particularly valuable for firms operating in European markets.
• Deltek: Provides industry-specific business management software and benchmarking data for architecture and engineering firms. Their annual surveys and reports offer detailed financial metrics, including project sizes, profitability by project type, and firm performance benchmarks.
• Royal Institution of Chartered Surveyors (RICS): Publishes guidance on Value Management and Value Engineering with comparative project value benchmarks across disciplines and geographies. Their standards and benchmarking tools are widely respected internationally.
• Government procurement databases: Many governments maintain public databases of awarded contracts, including detailed value information. In the US, USAspending.gov tracks federal contracts. The UK's Contracts Finder and EU's Tenders Electronic Daily (TED) provide similar transparency for public sector projects.
• Industry association reports: Organizations like the American Council of Engineering Companies (ACEC), Institution of Civil Engineers (ICE), and national engineering associations publish regular market surveys and benchmarking studies specific to their disciplines and regions.
• Proprietary market intelligence services: Specialized services like Dodge Data & Analytics, IHS Markit, and FMI Corporation provide detailed market analysis, project tracking, and forecasting specifically for engineering and construction sectors.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

1. Epicflow - Value Engineering in Project Management
2. Barbour ABI - Projects Awarded to Top 50 Engineering Firms
3. Aaron Wallis - Engineering Industrial Sales Market Report 2025
4. Engineering News-Record - 2024 Top 200
5. OpenAsset - AEC Industry Trends
6. RICS - Value Management and Value Engineering
7. Procore - Value Engineering
8. Central Statistics Office Ireland - Mean vs Median