Construction Manager at Risk in Harlingen, Texas

Willacy County's Heritage and Wellness Center in Raymondville is three new buildings estimated at $6,000,000, with construction from February 2025 to February 2026 and a state listing that shows inspection complete. A project like that is the middle of the market for public work in this part of the Valley: too big to hand to anyone, too small to carry a large overhead. Construction manager at risk was designed for that kind of project.

In this delivery method, the owner hires a designer and also hires the contractor early, while the design is still being developed. The contractor advises on cost, schedule and constructability, then commits to a guaranteed maximum price when the design is far enough along. The contractor, which here means us, takes on the risk of cost overruns above that price, and bids the major trades openly so the owner can see where the money goes.

Owners choose this method when they want the advice of a builder during design but also want the competition of open bidding. If you are weighing it against a single-contract approach, read our page on design-build delivery, and if you only need early numbers, our preconstruction estimating does that on its own.

What we do before and during construction

In the first phase we act as part of your team. We review the program, the site and the design as it develops, and we update the budget at each milestone. We suggest alternatives, flag items that will be hard to build and identify long-lead items. Our fee for this work is agreed in advance. By the time the drawings are complete, the budget has been tested several times.

In the second phase we package the work into bid packages, advertise them, receive bids and review them with you. Qualified local firms are encouraged to bid. We recommend awards, finalize the guaranteed maximum price and then manage construction. During construction we run weekly meetings, publish the schedule, track submittals and requests for information, review pay applications with the designer and keep the owner's representative informed of every change before it is approved. Savings from bidding, where the contract allows, return to the owner or are shared according to the agreement, and we track contingency openly through the job.

Where the guaranteed maximum price comes from

The price is built from the actual bids, our general conditions, our fee and a contingency that both parties agree on. Unlike a lump sum bid on incomplete drawings, it is based on what real firms will do the work for. We open the numbers to you: every subcontractor bid, every allowance, every assumption. If something is excluded, it is written down.

Public money has extra rules. The tax increment reinvestment zone in La Feria, approved by the city in 2008 and the county the same year, lists a project list of $51,450,000 that includes sewer, drainage, parks and public safety, and similar zones in Harlingen list roads, sewer and drainage. Those funding sources come with reporting and procurement rules, and we build our process to meet them. Procurement for public owners follows Texas law, and the owner's attorney determines which method fits.

Owners who use it

School districts, cities, counties, hospital districts and drainage districts are the typical public clients, and private owners such as medical groups, developers and larger employers use it too. The process works well when the building is complex, the budget is tight and the owner wants both transparency and cost control. Our government and public sector page explains the extra steps in public procurement, and our education institutions page covers school projects.

We also use CM at risk on private projects where the owner wants open bidding of the trades: a multi-building medical campus, a mixed-use development or a phased retail center. The steps are the same, and the contract is simpler because the owner decides what to disclose.

Fast-tracking and phasing

Because we are on board during design, we can start early work before the whole design is done. Site grading, utilities and foundations can go out for bid first, while the rest of the building is still being drawn. That can save months on a school or a clinic that has an opening date. It also lets the long-lead items be ordered early.

Phasing is part of the plan. For example, the three buildings of a public wellness campus can be built in sequence so that the first opens while the last is under construction, and the work is organized around the owner's staff and the public. Our phased construction on occupied sites page describes how we protect an operating facility.

Managing selected work packages

Some owners want the manager to keep close control of parts of the project to reduce cost and protect the schedule. We can break out site concrete, flatwork, footings and rough carpentry as separate packages in many cases, with every package bid openly so the owner can see it is competitive. Each package is included in the guaranteed maximum price on the same terms as the rest.

That arrangement is useful on a small-city project where good subcontractors are busy. If bids come back high or thin, we can repackage the scope and rebid it. We are open about this with owners and with the bidders, so no one feels the process is rigged. Bidders see the same documents, the same deadlines and the same addenda, and sealed bids are opened with the owner present or represented.

Building for a district, city or county?

Tell us the project, the funding source and the timeline. We will explain the steps to bring a construction manager at risk on board and what to expect from us during design.

Common Questions

What does 'at risk' mean?

It means we commit to a guaranteed maximum price. If the cost of the work goes above it for reasons within our control, we pay the difference. If the price is below it, the savings go to the owner or are shared as agreed.

How is it different from design-build?

In CM at risk the owner has a separate architect, and the contractor is hired to advise and then build. In design-build one entity holds both the design and construction contract. The first gives more owner control of design, the second gives more single-point responsibility.

Can local subcontractors bid?

Yes, and we encourage it. We advertise the bid packages, hold a pre-bid meeting and evaluate on price and qualifications. We also help small firms understand bonding and paperwork requirements.

When should the contractor be hired?

As early as possible, ideally at schematic design. The earlier we are involved, the more we can help with cost and schedule.

Does this work for school and city projects?

Yes, within the procurement rules of the owner. The owner's attorney and purchasing staff confirm which delivery methods are allowed and how selection must be done. We provide the qualifications and documentation needed for the selection.

No items found.

Ready to talk about your project?

Call956-695-3149