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Question 1

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Which AIA contract document is the standard form of agreement between Owner and Architect for traditional design-bid-build projects?

A101

B101

C401

G702

to track

2026 Statistics

Key Facts: ARE 5.0: PcM Exam

Items on PcM

NCARB 2026

2h 45m

Test Time

NCARB 2026

$257

Per-Division Fee

NCARB 2026

48%

2024 Division Pass Rate

NCARB

65%

First-Time Pass Rate

NCARB

Content Sections

NCARB Guidelines

ARE 5.0 PcM is an 80-item, 2h 45m computer-based exam administered by NCARB at Pearson VUE for $257 per division. The 2024 division pass rate was 48% (NCARB), with first-time takers passing at approximately 65%. The four content areas are Business Operations (~22%), Finances/Risk/Development (~32%), Practice-Wide Delivery (~25%), and Practice Methodologies (~21%). PcM is often taken first because its content draws directly from AXP Practice Management hours.

Sample ARE 5.0: PcM Practice Questions

Try these sample questions to test your ARE 5.0: PcM exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which AIA contract document is the standard form of agreement between Owner and Architect for traditional design-bid-build projects?

A.A101

B.B101

C.C401

D.G702

Explanation: AIA Document B101-2017 is the standard form of agreement between Owner and Architect, defining the architect's basic services across the five phases (SD, DD, CD, Procurement, CA). It is the most commonly used owner-architect agreement and is referenced extensively on the PcM exam.

2An architect serves on the design review board of a city while also designing a private project that will go before that same board. What is the architect's MOST appropriate action under the AIA Code of Ethics?

A.Proceed; serving on the board is unrelated to private practice

B.Disclose the conflict in writing and recuse from the board's review of the project

C.Resign from the design review board entirely

D.Decline the private project to avoid any appearance of impropriety

Explanation: The AIA Code of Ethics (Rule 3.201 and related canons) requires members to disclose any conflicts of interest that could compromise professional judgment and to recuse themselves from decisions where they have a personal interest. Disclosure plus recusal is the standard professional remedy.

3A new graduate working under a licensed architect signs and seals a small commercial drawing because the architect is on vacation. Under most state licensure laws this is:

A.Acceptable if the licensed architect later approves the drawing

B.Acceptable because the project is small commercial, not assembly

C.A violation of state licensing law regardless of project type

D.Acceptable if the graduate has completed AXP

Explanation: Only a licensee may sign and seal documents. NCARB and state laws are uniform on this: the act of sealing is the licensee's personal attestation that the work was prepared by them or under their responsible control. Unlicensed individuals — including AXP completers — cannot seal, regardless of project size or after-the-fact approval.

4Which business structure is generally PROHIBITED for the practice of architecture in California?

A.Professional Corporation (PC)

B.Sole Proprietorship

C.Limited Liability Company (LLC)

D.Limited Liability Partnership (LLP)

Explanation: California prohibits licensed architects from practicing as a standard LLC. Architects in California typically practice as a sole proprietorship, professional corporation, or LLP. State rules on entity choice vary considerably, so PcM tests this concept rather than specific state law.

5The PRIMARY advantage of organizing an architecture firm as a Professional Corporation (PC) or PLLC rather than a sole proprietorship is:

A.Avoiding double taxation entirely

B.Shielding personal assets from firm debts and the malpractice of other owners

C.Eliminating the need for professional liability insurance

D.Reducing the architect's personal duty of care

Explanation: A PC or PLLC creates a legal entity separate from its owners, shielding personal assets from the firm's general business debts and from professional negligence committed by other owners. The architect remains personally liable for their own professional negligence — the entity does not eliminate that, which is why malpractice insurance is still required.

6A firm's mission statement should primarily articulate:

A.Specific revenue and headcount targets for the next fiscal year

B.The firm's purpose, values, and the kind of work it pursues

C.A detailed list of marketing tactics and social media channels

D.The hierarchy of staff roles and reporting lines

Explanation: A mission statement is a brief expression of why the firm exists, what it values, and the type of work it intends to pursue. It guides strategic decisions and recruiting and is distinct from the business plan, marketing plan, or organizational chart.

7Under the AIA Code of Ethics, an architect who learns that a project's substandard structural design will likely result in significant safety risk MUST:

A.Notify only the client privately

B.Notify the affected parties or appropriate authorities

C.Withdraw silently from the project

D.Take no action because safety is the engineer's responsibility

Explanation: Canon VI of the AIA Code of Ethics requires members to uphold human rights and protect the public; specifically, members aware of decisions that endanger public health, safety, and welfare must report them to the client or appropriate authorities. Silence is unethical when public safety is at risk.

8A firm's organizational structure that arranges staff by project teams, with team members reporting to a project manager rather than to a discipline lead, is BEST described as:

A.Hierarchical (vertical) structure

B.Studio or project-based structure

C.Matrix structure

D.Networked structure

Explanation: A studio (or project-based) organization assembles cross-disciplinary teams around projects, with members reporting to a project manager or studio lead. It contrasts with hierarchical, matrix (dual reporting), and networked models. Many mid-size firms use studios to keep teams agile and accountable.

9Which document should an architect consult FIRST when forming a new firm to determine permissible business entity types and ownership requirements for architecture practice?

A.AIA B101

B.The state architectural licensing board's statutes and rules

C.IRS Publication 535

D.The AIA Handbook of Professional Practice

Explanation: Each state's architectural practice act defines who may own and control a firm offering architecture services and which business entities are permitted. Federal tax rules and AIA references are useful but secondary; the state licensing law is the controlling authority.

10The AIA Code of Ethics is enforceable through which mechanism?

A.State licensing board discipline only

B.AIA's National Ethics Council

C.Federal Trade Commission complaints

D.Client lawsuits in civil court

Explanation: The AIA Code of Ethics applies only to AIA members and is enforced by the National Ethics Council, which can sanction members up to termination of membership. Licensing boards enforce state practice acts; courts hear contractual and tort claims. The Code is not enforceable against non-members.

About the ARE 5.0: PcM Exam

ARE 5.0 Practice Management (PcM) is one of six divisions of NCARB's Architect Registration Examination. PcM tests an architect's ability to run a firm: business operations and structure; finances, risk, and development of practice; practice-wide delivery of services (including AIA contracts B101 and C401); and practice methodologies such as quality management, HR, and recruitment. The PcM exam contains 80 items and you have 2 hours and 45 minutes. NCARB updates effective April 27, 2026 adjust 12 of 91 exam objectives and tighten the case study format across all divisions.

Questions

80 scored questions

Time Limit

2 hours 45 minutes

Passing Score

Scaled cut score (NCARB does not publish a fixed percentage)

Exam Fee

$257 per division (NCARB (Pearson VUE))

ARE 5.0: PcM Exam Content Outline

20-26% (13-17 items)

Business Operations

Firm structure, mission, organizational models, AIA Code of Ethics, licensure law, sealing, multi-state practice, business entity selection (LLP, PC, PLLC, sole proprietorship), HR/employment law fundamentals.

29-35% (19-23 items)

Finances, Risk, and Development of Practice

Financial statements (P&L, balance sheet), KPIs (utilization, net multiplier, DPE, DSO), insurance (E&O, CGL, workers' comp), professional liability/standard of care, indemnification, statute of repose, business development.

22-28% (14-18 items)

Practice-Wide Delivery of Services

AIA owner-architect agreements (B101, B103, B104, B105), architect-consultant agreements (C401), General Conditions (A201), basic/supplemental/additional services, instruments of service and copyright (AWCPA), project delivery methods (DBB, DB, CMAR, IPD).

17-23% (11-15 items)

Practice Methodologies

Quality management plans, peer review, recruitment and retention, AXP supervision, performance management, mentoring, reciprocity (NCARB Certificate), continuing education, ADA Title III, OSHA general duty clause, records retention.

How to Pass the ARE 5.0: PcM Exam

What You Need to Know

Passing score: Scaled cut score (NCARB does not publish a fixed percentage)
Exam length: 80 questions
Time limit: 2 hours 45 minutes
Exam fee: $257 per division

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

ARE 5.0: PcM Study Tips from Top Performers

1Read AIA B101-2017 cover-to-cover and study Articles 3 (services), 4 (additional services), 7 (ownership), 8 (claims and disputes), and 11 (compensation)

2Study AIA C401-2017 alongside B101 — PcM frequently tests how the prime agreement flows down to consultants

3Memorize key financial KPIs and their formulas: utilization rate, net multiplier (3.0 industry benchmark), DPE, overhead rate, DSO

4Know the difference between standard of care (reasonable architect) and warranties/guarantees (uninsurable absolute commitments)

5Distinguish business entities — sole proprietorship, GP, LLP, LLC/PLLC, PC — and which states allow architects to use each

6Understand the AIA Code of Ethics canons (especially I, III, IV, V, VI) and the disclosure-and-recusal remedy for conflicts of interest

7Memorize insurance types: E&O (claims-made, professional services), CGL (occurrence, bodily injury/property), workers' comp (state-mandated)

8Practice case studies in NCARB's free practice exam — the April 2026 update changed case study structure, so use the current version

9Use the NCARB ARE 5.0 Guidelines (post-April 2026 version) as your authoritative content map — it lists every exam objective

10Take at least one full timed simulation (80 items, 2h 45m) before exam day to build pacing — average ~2 minutes per item

Frequently Asked Questions

What is on the ARE 5.0 Practice Management (PcM) exam?

PcM contains 80 items across four sections: Business Operations (20-26%), Finances/Risk/Development of Practice (29-35%), Practice-Wide Delivery of Services (22-28%), and Practice Methodologies (17-23%). It tests how an architect runs a firm — business structure, AIA contracts, ethics, professional liability, finances, HR, and quality management. PcM contains case studies that present a project scenario with reference resources to analyze.

How long is the ARE PcM exam and how much does it cost?

PcM is 2 hours 45 minutes of test time (the full appointment is slightly longer to allow for a tutorial and an optional break). The exam fee is $257 per division as of 2026, paid to NCARB. State licensing-board fees and the NCARB Record subscription are separate.

What is a passing score on ARE PcM?

NCARB does not publish a fixed passing percentage. Each division uses a scaled score with the cut score set by panels of practicing architects. Score reports show 'Pass' or 'Fail' rather than a numeric grade, with diagnostic feedback on each section's relative performance. The 2024 PcM division pass rate was 48% overall, with first-time takers passing at approximately 65%.

What changes does the April 2026 ARE update bring to PcM?

NCARB published updated ARE 5.0 Guidelines effective April 27, 2026. Twelve of 91 exam objectives were adjusted to align with NCARB's Competency Standard. Case study sections changed: each division now includes a fixed number of items rather than a range, with fewer total resources and fewer items per case study to reduce loading time. Division structure, item counts, and testing time are unchanged.

Which AIA documents should I focus on for PcM?

Master AIA B101-2017 (Owner-Architect Agreement) — its services structure (Basic/Supplemental/Additional), compensation methods, ownership of Instruments of Service, and risk-management clauses (mutual waiver of consequential damages, indemnification). Also study C401-2017 (Architect-Consultant Agreement) for prime-consultant relationships, and A201-2017 (General Conditions) for context. B103 (large/complex projects) and B104/B105 (short forms) appear on PcM as well.

What study order makes sense for the six ARE divisions?

Many candidates start with PcM and PjM because their content draws directly on the Practice Management and Project Management hours from AXP, and the same business and contract concepts repeat across both. After PcM/PjM, candidates often take PA, PPD, PDD, and CE in that order — but NCARB allows divisions to be taken in any order and in any combination.