ARE After Hours | 001

A new way to study, starting with PJM

By: Giovanni Zora
May 29^th, 2026

Intro — New Study Method
I am a few weeks into my PJM exam and am going to be testing out a new study method. This method is “blog” style writing where I essentially brain dump before and after every study session. Typically my study sessions range from 1-3 hours and these posts will vary. I also intend to include some terminology, methodologies, procedures, references, questions, and any other information that I deem important. This portion of my website will be an archive of all my study material for the ARE exams. I am calling this series ARE After Hours, and it is exactly what it sounds like; I currently am working a full-time job at a custom home builder and my time to study is — after hours. I want to be able to look back and be able to reference any material I wrote down in case I need it in the future.

Project Delivery Compensation Methods:

Target Price = typically used for design-build projects, owner sets “target price”

Cost Plus = ideal for small-scale projects, good when conditions are unknown, also known as “time and materials” because contractor figures out cost of materials and has a predetermined hourly rate (stipulated sum + hourly = cost plus)

Cost Plus Fixed Fee = minimal design is needed, deadline is a higher concern than cost

Stipulated Sum = one fixed fee, known conditions, thorough scope of work, time is main concern

Unit Prices = best for unknown scope, repetitive units/number of items

Partial Cost Guarantee = portion of project has guaranteed cap, but no guarantee on time

In which design phase can owners expect to receive deliverables?

Schematic Design =

Design Development = outline specifications, identify materials and identify systems

Construction Documents = complete specifications, potential bidding requirements, all design elements should be chosen and specified for bidding

• Cost of work is what the owner pays to construct the project — does not include the architects compensation
  • Cost of work estimate is a BASIC SERVICE in all these above design phases
  • If architect gets cost of work estimate incorrect, they may be responsible for revising the project to meet the owner’s budget

ARE After Hours Summary
Cost of work estimates can get complicated. If asked for by the owner at the start of a project, COW estimates are apart of basic services as an architect, but can also be requested as a supplemental, if a more detailed estimate is wanted from the owner. Providing a more detailed estimate is not advised since you are liable for the COW estimate you provide to be on point and insurance providers may look at this in a negative light. Instead you can advise the owner to involve a CM early on, as they can provide pricing estimates through CM-Advisor, CM-Agent, CM-Contractor. The CM as Contractor provides a GMP prior to design completion.

If the estimate is incorrect and doesn’t align with the budget when going out for bids the architect can value engineer the building; reducing square footage, recommending other materials to use, etc in order to get the project back on budget. This is typically an additional service, since it is added later on and requires the architect to change the design.