ACA Pulse Check 2025 – Victorian Insights
Victorian participants of the ACA Pulse Check survey 2025 highlight an increasingly challenging business environment, with rising operational costs, increased regulation, fee erosion and a weak project pipeline squeezing Victorian practices. Read on for the key takeaways from Victoria, including the latest insights on staffing, revenue, positive developments and challenges.
THE NUMBERS
The Victorian Pulse Check 2025 draws on insights from 101 respondents. With 42% of these firms in operation for more than two decades and under 1% newly established, the data points to a highly experienced sector. Small practices remain the cornerstone of Victoria’s architectural landscape – over half (52%) of our survey participants currently have fewer than 15 staff. While larger firms (100+ staff) have increased slightly in number since pre-COVID, overall practice size trends show only modest growth or recovery.
Staffing levels vary widely, from solo operations to practices employing over 100 full-time technical staff. Part-time roles are more common than casual positions, indicating a shift towards flexible but stable resourcing strategies.
WHAT REALLY STOOD OUT FOR US …
Rising operational costs, increased regulation, and fee erosion are squeezing Victorian practices. While some firms report improved efficiency through streamlined operations, most cite constrained profitability amid client demands for more services at lower rates.
FIVE KEY TAKEAWAYS FROM VICTORIA
1. Pipeline crisis dominates business planning
Victorian practices are facing a critical shortfall in upcoming work – over 60% have 3 months or less work in their pipeline. This, combined with 48.7% reporting revenue decreases in recent months, has created a reactive, survival-focused business environment.
“Desperate!!”
“Every time things are looking up, something else happens in the political sphere which gives clients the jitters…”
2. Victorian staffing shows quality crisis
Victorian practices report that 40% have recently hired staff while 45% have let staff go or may soon, reflecting rapid workforce adjustments to project volatility. Capability gaps in potential candidates is a core issue.
“Difficulties finding quality candidates, not quantity”
3. Service fragmentation accelerates
Victorian practices are moving away from comprehensive service delivery. Only 36% offer full services on 76-100% of projects, with clients increasingly demanding limited scopes to control costs. This fundamental shift challenges traditional architectural business models.
4. Wellbeing under external pressure
Despite strong internal workplace culture efforts, Victorian practices report significant stress from external factors – economic uncertainty, project pipeline volatility, and client relationship pressures. Director burnout features prominently in responses.
5. Novation contracts create sector-wide hostility
Approximately 50% of Victorian practices are subject to novation, with overwhelmingly negative sentiment attached. Practitioners describe it as risky, unfair, and ethically compromising, with some calling for it to be “banned”. This contractual arrangement represents a significant source of professional frustration and business risk.
“Risky, unfair, and ethically compromising.”
FURTHER INSIGHTS
What did the Victorian Pulse Check reveal about staffing?
- 40% of practices hired junior staff
- 33% continue seeking quality candidates
- Meanwhile, 45% have reduced staff
- A lack of sufficient work is the primary reason behind staff reductions
- The main recruitment challenge lies in sourcing experienced architects with construction experience, with minimal reliance on casual employment
- Staff sizes vary widely, ranging from solo practitioners to firms with over 100 employees.
What’s happening with revenue?
- Almost half (48.7%) of Victorian practices report revenue decreases over the past six months
- Only 20.5% of practices have seen revenue growth during this period
- Clients demanding lower fees have led to widespread fee compression
- Practices are reducing costs while striving to maintain service quality
- Cash flow and profitability concerns dominate.
What positive developments are we seeing?
- Architecture remains the dominant discipline in practice (100%), with strong representation in interiors, urban design, and heritage
- Service diversification is expanding – modular manufacturing, sustainability consulting, and community engagement
- Sector diversification – community, aged care, and hospitality work has grown post-COVID
- Flexible work cultures established – hybrid arrangements and team culture focus
- Mental health initiatives have increased across Victorian practices since the pandemic.
What challenges are most pressing?
- Immediate work pipeline crisis – majority operating on month-to-month visibility
- Novation contract hostility – 50% experience it, with strong negative sentiment, calling for it to be “banned”
- Fee compression with rising costs – regulatory burdens increasing while fees shrink
- Quality talent shortage – particularly mid-career registered architects with construction experience
- Director exhaustion – multiple mentions of leadership burnout managing uncertainty
- Client relationship strain – compressed timelines, scope creep, payment delays.
“Pressures stem from workload, uncertain pipelines, and client expectations”
Wellbeing in Victorian practices
- Most practices rate their wellbeing as “Good” or “Neutral”, indicating generally positive workplace satisfaction levels
- Younger staff members and employees with multiple commitments consistently report lower wellbeing levels compared to their colleagues
- Workplace culture tends to be informal and supportive, characterised by regular check-ins between team members and shared social activities
- Staff stress levels are primarily driven by external factors, including workload uncertainty, demanding client expectations, and broader economic pressures affecting the industry
- Leadership experience significant stress as directors must balance the dual responsibilities of managing their teams while also handling business development and pipeline pressures.
How the ACA will use these insights:
Your responses are shaping ACA’s next steps, including:
- Business resources and pricing tools for better margins
- Leadership development and wellbeing case studies
- Stronger advocacy for fair procurement and contract reform
- Continued work on education-to-practice readiness
- More targeted resources for sole practitioners and emerging practices
Photo: Andy Wang, Unsplash