Construction & Evaluation Practice Exam | ARE 5.0 CE Exam July 2026 (ARE Live Episode)

Episode Summary

In this episode of ARE Live, Black Spectacles and architect Chris Hopstock walk through Construction & Evaluation practice exam questions for the ARE 5.0 CE exam.

This episode focuses on the types of contract administration, construction documentation, and project closeout questions candidates may see on the CE division, including allowance adjustments, bidding documents, non-conforming work, substantial completion, and change orders under AIA contract documents.

You’ll learn how to evaluate answer choices, understand construction administration procedures, and apply contract rules to realistic project scenarios.

If you’re preparing for the ARE 5.0 CE exam, this episode is designed to help you build confidence with the construction administration phase of a project, especially when it comes to documentation, communication, cost changes, and architect responsibilities.

You can also review the ARE Live CE Practice Exam July 2026 community discussion, where members asked questions about the practice exam questions and concepts covered in this episode.

For a broader overview of how CE fits into the full exam process, read our guide to the ARE 5.0 exam divisions.

Key Takeaways

• The CE exam focuses on construction administration, contract procedures, documentation, and project closeout.
• Allowance adjustments may affect the contract sum when actual procurement costs differ from the allowance amount.
• Architects should document, notify, and reject non-conforming work, but should not direct subcontractors’ means and methods.
• Owners may accept non-conforming work, but accepted exceptions should be documented at substantial completion.
• Under standard AIA contract documents, the architect prepares change orders.
• CE questions often test whether you understand the architect’s role, responsibilities, and limits during construction.

Timestamps

• 4:40 – Question 1: Calculating allowance adjustments and contract cost impacts
• 10:53 – Question 2: Using allowances for incomplete bidding information
• 18:18 – Question 3: Managing non-conforming work during construction administration
• 29:17 – Question 4: Documenting accepted exceptions at substantial completion
• 35:21 – Question 5: Preparing change orders under AIA contract documents

Join the Discussion & Watch the Webinar Q&A

Join the discussion and revisit the webinar Q&A in the ARE Live CE Practice Exam July 2026 community thread.

Topics discussed during the live Q&A included:

• How to calculate allowance adjustments when fixture costs exceed the allowance
• Whether “net change” means a positive or negative cost change
• When to include general conditions, overhead, and profit in a cost adjustment
• Why allowances are used when products have not been fully selected
• How architects should respond to non-conforming work during site visits
• Whether the owner or contractor should be notified about non-conforming work
• How unused allowances are credited back to the owner
• When accepted non-conforming work becomes an exception at substantial completion
• Who prepares change orders under standard AIA contract documents

What This CE Practice Exam Episode Covers

Calculating Allowance Adjustments and Contract Cost Impacts

The first practice exam question focuses on a project where the plumbing and electrical line items include a $50,000 combined allowance for plumbing and lighting fixtures. After procurement, the total cost for those fixtures ends up being $65,000.

The question asks for the net change to the total project cost.

This type of CE question tests your ability to understand allowances, contract cost impacts, and how additional costs may affect the overall project budget.

The first step is to calculate the difference between the allowance and the actual cost:

$65,000 - $50,000 = $15,000

Because the actual cost is higher than the allowance, the change is positive. The project cost is increasing.

The next step is determining whether general conditions, overhead, and profit should be applied to the additional cost. In this question, the budget includes 8% general conditions and 4% overhead and profit. Together, those equal 12%.

The full calculation is:

$15,000 x 1.12 = $16,800

The correct answer is $16,800.

This question reinforces an important CE concept: a math question on the ARE may also be testing your understanding of construction contracts, cost changes, and how contract sums are adjusted.

For more support with ARE practice questions, explore Black Spectacles’ ARE 5.0 study resources.

Using Allowances for Incomplete Bidding Information

The second practice exam question asks what an architect should include in the bidding documents when decorative light fixtures have not been fully selected or specified, but the owner wants to receive bids now to determine whether the project is within budget.

The correct answer is allowance.

An allowance is a placeholder amount included in the bidding documents when a portion of the work has not been fully defined. It allows all bidders to include the same amount for that unresolved scope, which makes bids easier to compare.

In this scenario, the design documents identify the general lighting scope, but several decorative fixtures have not been selected. Because the architect does not yet know the exact product, manufacturer, or cost, an allowance is the appropriate bidding tool.

In contrast:

• A unit price is used when the cost of one repeatable unit is needed.
• A not-to-exceed cost or guaranteed maximum price is typically used for larger scopes of work, not an unresolved fixture selection.
• An alternate price is used when the owner is choosing between defined options, such as one specified roofing material versus another.

This question reinforces a common CE theme: the architect must understand which bidding and pricing tools are appropriate for different levels of design certainty.

Managing Non-Conforming Work During Construction Administration

The third practice exam question focuses on a site visit where the architect observes that several installed light fixtures do not match the fixture type shown in the contract documents. The contractor has not submitted a substitution request, and the work appears to be non-conforming.

The question asks which actions are appropriate for the architect to take.

The correct actions are:

• Document the observation in the site visit report
• Notify the contractor that the work is non-conforming
• Reject the non-conforming work

This is a classic construction administration scenario. When the architect observes work that does not conform to the contract documents, the architect should document the observation, communicate the issue, and reject the non-conforming work.

The architect should not direct the electrician how to remove and reinstall the fixtures. That would involve directing means and methods, which is the contractor’s responsibility.

The architect should also not certify payment for the fixtures simply because they were installed. Work should be paid for when it conforms to the contract documents, not just because it has been completed.

This question reinforces the importance of knowing the architect’s role during construction. The architect observes, documents, reviews, notifies, and rejects non-conforming work when appropriate, but does not direct subcontractors or take control of construction means and methods.

Documenting Accepted Exceptions at Substantial Completion

The fourth practice exam question builds on the previous non-conforming work scenario. The architect has observed that several light fixtures do not match the contract documents and has notified the owner and contractor that the work appears non-conforming.

Near substantial completion, the owner decides to accept the installed fixtures rather than require removal and replacement.

The correct answer is to list the fixtures as an exception on the Certificate of Substantial Completion.

This question tests your understanding of non-conforming work, owner acceptance, and substantial completion documentation.

Under AIA A201, the owner may choose to accept work that does not conform to the contract documents instead of requiring that the work be removed and corrected. However, the architect still needs to document that exception.

Substantial completion means the project is sufficiently complete for the owner to occupy or use it for its intended purpose. When the architect issues the Certificate of Substantial Completion, exceptions to substantial completion should be listed. This may include non-conforming work that the owner has accepted.

The architect should not override the owner’s acceptance through an architect’s supplemental instruction. The architect also should not require the contractor to remove the fixtures if the owner has decided to accept them, unless the issue involves health, safety, welfare, code compliance, or another critical requirement.

This question reinforces a key CE principle: documentation protects the project team and clarifies what has been accepted, corrected, or excepted at major project milestones.

Preparing Change Orders Under AIA Contract Documents

The fifth practice exam question focuses on a construction-phase change. The owner decides to upgrade the specified lobby flooring to a more expensive material. The contractor submits pricing for the added cost and schedule impact, and the owner agrees to proceed.

Because the contract sum and contract time must be formally adjusted, the question asks who prepares the change order under the standard suite of AIA documents.

The correct answer is architect.

This is a question candidates often find tricky because common practice may differ from the language in standard AIA contract documents. In many real-world projects, contractors may draft or initiate change order paperwork. However, under AIA A201, the architect prepares change orders and construction change directives.

That does not mean the architect creates the change order without input. The contractor typically provides pricing, schedule impacts, and supporting information. The architect uses that information to prepare the formal change order document and circulate it for approval and signatures.

This question reinforces the importance of studying standard AIA contract responsibilities for the CE exam. On the ARE, the correct answer is based on the contract documents, not necessarily the way a specific office handles the process in practice.

About the Guest: Chris Hopstock

Chris Hopstock is a licensed architect based in New York and an educator with Black Spectacles. He helps ARE candidates understand technical exam content, construction administration procedures, and strategies for approaching complex ARE 5.0 questions.

In this episode, Chris walks candidates through CE practice exam questions related to allowances, bidding documents, non-conforming work, substantial completion, and change orders. His explanations focus on how to read the prompt carefully, understand the architect’s responsibilities, and apply standard contract procedures to exam scenarios.

Frequently Asked Questions From the ARE Live Community

What is covered on the ARE 5.0 CE exam?

Construction & Evaluation focuses on the construction administration phase of a project. Topics may include contract documents, bidding and negotiation, construction observation, submittals, RFIs, payment applications, change orders, non-conforming work, project closeout, and the architect’s responsibilities during construction.

What types of questions appear on the CE exam?

CE questions often involve construction administration procedures, contract responsibilities, documentation, site observations, cost changes, substitutions, substantial completion, and project closeout. Candidates may also see questions that require simple calculations related to allowances, change orders, or contract adjustments.

What is an allowance in construction documents?

An allowance is a placeholder amount included in the bidding or contract documents for work that has not been fully selected or specified. Allowances are often used for items such as decorative light fixtures, plumbing fixtures, or finishes when final selections have not been made before bidding.

What should an architect do when work is non-conforming?

When an architect observes non-conforming work, the architect should document the observation, notify the contractor, and reject the work when appropriate. The architect should not direct the contractor or subcontractor’s means and methods.

Can an owner accept non-conforming work?

Yes. Under standard AIA contract procedures, an owner may accept work that does not conform to the contract documents instead of requiring removal and correction. When this happens, the accepted non-conforming work should still be documented appropriately, such as by listing it as an exception at substantial completion.

Who prepares a change order under AIA contract documents?

Under standard AIA contract documents, the architect prepares change orders. The contractor typically provides pricing, schedule impacts, and supporting information, but the architect prepares the formal change order document for approval.

Ready to Start Studying for the CE Exam?

Preparing for CE requires more than memorizing contract terms. You need to understand how construction administration procedures, documentation, cost changes, and architect responsibilities work together during the construction phase.

Black Spectacles’ ARE prep is designed to help you study more efficiently with expert-led video lectures, realistic practice exams, quizzes, flashcards, guided study plans, and detailed answer explanations.

Have follow-up questions from this episode? Join the ARE Live CE Practice Exam July 2026 community discussion to see what other candidates asked.

Start studying for the ARE today.