ARE 5.0 Practice Management (PcM): How to Study, What to Know, and Pass in 2026
Oct 07, 2025
If you’re just starting your ARE journey, Practice Management (PcM) is often where it begins.
It’s the first real test of how you’ll study, focus, and show up for these exams.
And yes… it’s a tough one. But it’s also the perfect place to build momentum.
PcM is where you learn how the exam system works, how to manage your time, and what you actually need to know (not just memorize).
Start Here
Before anything else, grab the official NCARB ARE Handbook.
It outlines every division, question type, and content area. Think of it as your map.
Once you’ve skimmed it, come back here. This post will help you understand what PcM really tests, how to study smarter, and what resources to use.
Resources to Help You Pass
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Join the ABC Club – your full ARE® study system and community
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Join ABC Club Premium – includes Mind Over ARE™ coaching, study calls, and replays
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Free ARE Resource Library – instant access to essential tools and tips
Why PcM Is So Important
PcM covers the business side of architecture (the part most of us never learned in school).
Financial management, risk, staffing, contracts, ownership structures… all the real-world things you face once you’re running (or helping run) a firm.
It’s not about design at all. But it’s foundational to understanding the why behind every business decision an architect makes.
When I first took PcM, I realized how little we talk about entrepreneurship in architecture.
If I could design a college course around this, I would… and PcM would be the final exam.
What’s on the PcM Exam
Here’s what NCARB tests you on, plus what that really means:
1. Business Operations (20–26%)
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How firms actually run day to day (org charts, roles, profit centers)
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Professional ethics and standard of care
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Laws and regulations for running a practice
📚 Focus on: AHPP Chapter 7 & 10 and AIA Code of Ethics
2. Finances, Risk & Development of Practice (29–35%)
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How to read a P&L, calculate net multiplier, and track billable hours
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Budgeting, consultant fees, and overhead rates
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Proposals and contract negotiations
📚 Focus on: AHPP Ch. 9 & 12 (plus your own firm’s real-world examples if you can)
3. Practice-Wide Delivery of Services (22–28%)
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Contract types (AIA B101, C401) and project delivery methods
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Risk management through communication and documentation
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How different delivery methods affect your responsibilities
📚 Focus on: understanding who owns what risk in each contract type
4. Practice Methodologies (17–23%)
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How business models shape firm culture and risk tolerance
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Strategic planning and growth
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Phasing and methodologies that influence profitability
📚 Focus on: why certain decisions make a firm more (or less) stable
How to Study
Studying for PcM isn’t about memorization… it’s about comprehension.
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Start with the ARE Handbook and mark the topics you already understand vs. what’s new.
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Use the AHPP as your core text (the “Architect’s Bible”).
Inside the Free ARE Resource Guide, you’ll find which sections of AHPP to focus on for PcM so you don’t waste time reading everything. -
Practice using real questions. Inside the ABC Club, you’ll find interactive study tools, games, and practice questions that train how NCARB actually phrases problems.
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Schedule your exam early. Don’t wait until you “feel ready.” You never will. The first exam is part of your learning curve.
Understanding the AHPP
You’ll see this book mentioned everywhere… because it’s that important.
But reading it cover-to-cover isn’t realistic.
Use targeted sections. Read actively. Take notes on concepts like:
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Break-even rate vs. net multiplier
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Utilization rate and overhead factor
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Risk management principles and firm structure
If you want a guided approach, join the ABC Club or Premium for weekly study sessions and support on topics like these.
If You Fail (It’s Normal)
If this is your first exam… you might fail. That’s part of the process.
PcM isn’t easy because it tests how you think — not what you’ve memorized.
Failing doesn’t mean you’re not ready to be licensed. It means you’re learning how NCARB tests.
So, take notes after every attempt. Look for patterns. Then go again.
Inside the ABC Club Premium, you’ll find coaching replays that walk through failure recovery, mindset shifts, and real pass strategies that work.
Homework
To help you get started, grab a free download from our Activity Book for Architects:
practice problems designed to reinforce key PcM concepts and boost retention.
Access your free ARE® homework here
Keep Going
PcM is the foundation for everything else you’ll see in the ARE.
Once you understand business and risk, you’ll see how those concepts connect to project management and contracts across every division.
You’re already doing the hard part: showing up and starting!
Keep going. You’ve got this.
Happy studying,
Bryn