Construction Management at Risk in Amarillo

A guaranteed maximum price is a promise with a ceiling. In construction management at risk, or CM at risk, we join the project while the design is still taking shape, advise on cost and schedule, and then commit to a guaranteed maximum price for the work. If the building costs more than that ceiling, we carry the difference. If it costs less, the savings follow the terms of the contract.

The method sits between design-bid-build and design-build delivery. The owner keeps a separate architect and engineer, and keeps control of the design, while the builder works as a partner before construction and as the accountable party during it. Owners like it for projects that are too complex for a simple bid but need a firm price, such as campuses, plants, medical space and public buildings.

This region has examples of the kind of owners who use it. The Texas A&M University System Board of Regents approved $45 million in November 2022 for renovating the Education Building and health and safety upgrades across the West Texas A&M campus in Canyon, plus $8.4 million for athletic expansion. Work on an occupied campus is a good fit for a builder who is at the table early.

Public owners follow procurement rules that vary by type of entity, and those rules decide whether CM at risk is allowed and how it must be procured. We do not give legal advice on that, and we recommend that public owners confirm the method with their counsel. We have no trouble working within a qualification-based selection when one is required.

On the building side, the rules are the same for any method. Inside Amarillo, Building Safety handles permits through MGO Connect and requires stamped plans on site and special inspectors for fabricated steel, concrete and masonry. Texas applies the International Building Code to commercial buildings under House Bill 738, and the Texas Department of Licensing and Regulation reviews accessibility on projects of $50,000 or more. We plan the review steps into the preconstruction schedule.

During design we price at each milestone and track the change against the budget. When drawings are about ready, we bid the work to qualified trades in packages, review the bids openly with the owner and set the guaranteed maximum price from the real numbers, with a contingency for unknowns and a fee. The bidding is where the owner sees the market, line by line.

The Panhandle market adds some special factors. Trade capacity is limited by distance, and material deliveries may take longer than in a larger city. A bond or council vote may fix the owner's budget in advance. For example, the Dumas school district spent over $100 million to open three new elementary schools by mid-2024, an example of an owner with a large program who needs careful cost control. We help owners know what the budget can buy before design runs ahead of money.

Contingency deserves a plain explanation. It is a pot for unknowns, not a second fee. We hold it inside the guaranteed price, report every draw against it and return what is left under the terms of the contract. Soil conditions, hidden utilities and hail or wind delays are the usual draws on the high plains. Allowances, a different tool, cover items the design cannot define yet, such as finishes or owner equipment, and we convert them to firm numbers as decisions are made.

Our preconstruction work includes site and soils review, phasing plans, logistics, schedule, constructability reviews and value engineering. We assemble the bid packages, prequalify trades and manage the buyout. We tell the owner if a package is likely to draw weak bids, and we adjust scope or timing to avoid it.

We encourage owners to share the budget with us early. A builder who knows the real limit can steer design toward it. A builder who guesses will bring back a number that surprises everyone. Our preconstruction estimating process feeds directly into the guaranteed price.

During construction, we manage subcontractors, safety, quality, schedule, payment applications and closeout. We release selected bid packages early when it is in the owner's interest, particularly concrete, site work or other packages that control the schedule. For the rest, we are the single point of accountability.

Reporting is regular and open. Owners receive monthly cost reports, schedule updates, change order logs and a clear view of contingency use. Savings are tracked as closely as overruns. For municipal work, our site development and utilities capability covers the roads, water and drainage that often come with the building.

CM at risk shines on projects that cannot stop. A school must open in August, a plant must keep running and a medical office must serve patients. We work with the owner to phase the work, build temporary access, schedule noisy tasks for off hours and protect finished areas.

Public works carry long timelines of their own. The Amarillo City Council approved design services for a drainage project at Lawrence Lake, a playa lake off I-40 and Western, adding a pump station and sending stormwater to West Amarillo Creek, a job projected to take at least two years once design is finalized. Long public projects show why early planning and clear sequencing matter. We bring the same discipline to every owner.

The method serves education institutions, healthcare systems, government and public agencies and private owners with complex programs. It suits any owner who wants early input from a builder and a firm price, along with openness about where the money goes.

Tell us your budget, your site and your date. We will explain how CM at risk would work for your project and what else to consider.

How is CM at risk different from design-build?

In CM at risk, the owner holds a separate contract with the architect and keeps the design. In design-build, one team holds both. Both methods provide early pricing, but they allocate responsibility differently.

What is in the guaranteed maximum price?

It includes the cost of the work, our general conditions, a contingency and our fee. The contract spells out what is included, what is excluded and how savings are shared.

Can the trades be bid openly?

Yes. We usually bid the major packages to qualified trades and share the results with you. You can see the competing prices and approve the selections.

When should I bring you in?

As early as you have a site and a budget. Early input changes design decisions while they are cheap.

Do you package any work early?

We may package select work early, such as concrete or site work, when it helps the schedule or the price. We tell you what we propose and why.