Design Create Inspire
Studying for the Architect Registration Exam (ARE 5.0) and working toward licensure? This podcast is for you. Hosted by Bryn Young, licensed architect, author, and founder of ABC Club and Mind Over ARE, each episode brings you exam prep strategies, study tips, and mindset tools to help you pass the ARE. You’ll also hear real insights from coaching calls on overcoming procrastination, staying motivated, and balancing architecture exams with life and work. Plus, episodes on the architecture profession itself, from contracts to practice management, so you’re prepared not just for the tests, but for your career as an architect.
Design Create Inspire
How to Calculate Labor Budget (Step by Step) | ARE 5.0 PcM
In this episode, we dive into a classic ARE 5.0 Practice Management (PcM) practice question on top-down budgeting. Using a real-world style scenario, we break down step by step how to calculate a project’s labor budget from construction costs, gross fee, consultant fees, and contingency.
You’ll learn:
- How to calculate gross fee as a percentage of construction cost
- Why consultant fees are taken from the gross fee (not the construction cost)
- How contingency and direct expenses factor into the calculation
- How to arrive at the final labor budget available for staffing and project phases
- Where to find the formula in the Architect’s Handbook of Professional Practice (AHPP Table 10.4)
This breakdown is critical for the ARE 5.0 PcM exam, but it’s also directly applicable in real-world firm management when setting fees and allocating resources.
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