Cardi B's Dream Home: Choosing the Best Fee Method | ARE 5.0 CE Practice Question

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In this episode, we tackle a famous ARE 5.0 Construction & Evaluation (CE) practice question that also connects to PjM and PDD. The scenario? A high-profile client (yes, Cardi B!) who cares most about schedule and design quality — with no concern about cost. Which fee structure is the right fit: GMP, stipulated sum, cost-plus-fixed-fee, or negotiated sum?

Head Coach Shikha breaks down the nuances of:

• Guaranteed Maximum Price (GMP) – when cost certainty drives the contract
• Stipulated Sum – fixed fee based on a clearly defined scope
• Negotiated Sum – comparing contractor bids through negotiation
• Cost-Plus-Fixed-Fee – how it balances risk, flexibility, and incentives for faster delivery

You’ll also hear how NCARB tests this concept across multiple divisions and why mastering the Architect’s Handbook charts on project delivery methods, cost, and risk is key for exam success.

Whether you’re preparing for the ARE 5.0 CE exam or want to better understand how different fee structures impact real projects, this deep dive gives you the clarity and practical examples you need.

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