Construction Management at Risk in Santa Fe and Northern New Mexico

A guaranteed maximum price is a promise, and the value of a promise depends on how well the promiser understood the work before making it. Construction management at risk is built around that idea. The builder joins the project while the design is still being drawn, gives advice on cost, schedule and constructability, and then commits to a ceiling price once the documents are mature enough to price with confidence. Until that moment the owner pays a fee for guidance, and afterward the owner has a contractor whose interests are bound to the budget.

The method suits owners who want a separate architect and a strong voice in the design, but who do not want to discover cost problems at the bid. It fits public agencies, schools, hospitals and complex renovations, and it works well on buildings that must stay open while work goes on. The Roundhouse, the New Mexico State Capitol, is a reminder of why: it was dedicated in December 1966 and had a renovation in 1992 that included asbestos abatement and mechanical, electrical and accessibility upgrades inside the seat of state government.

How the guaranteed maximum price is built

During preconstruction we provide estimates at each design milestone, usually schematic, design development and near-complete documents. Each estimate compares to the owner's budget, and we propose adjustments when the numbers drift. When the documents are ready, we bid the work to subcontractors in packages and assemble the GMP from their prices, our general conditions, our fee and a contingency.

Open-book accounting is central. The owner sees subcontractor bids, the buyout results and any savings. Savings below the GMP are returned according to the contract, which can be to the owner or shared, and the contract should say so plainly. We believe the owner should see the numbers, because trust in this method depends on the ability to check.

Fast-tracking without losing control

Because the builder is on board early, packages can be released in sequence. Site work, foundations and long-lead equipment can start while later design is being finished. This reduces the overall schedule, though it requires disciplined coordination so that early work does not conflict with later decisions.

In Santa Fe, early packages must also fit the review calendar. Historic board approvals, archaeological clearance and utility reviews each place limits on what can begin, and we map them against the packages. A building that has to open for a school year or a legislative session has little room for slippage, and we advise owners on where to hold time in reserve and where speed is possible.

Early input from the people who will build it

The most valuable thing a builder can offer during design is a plain opinion. We review drawings for constructability, point out conflicts between structure and ductwork, flag details that will be expensive and suggest alternatives. We also assess logistics, such as where the crane will stand, how materials will reach the site and how neighbors will be affected.

With owners in historic areas, we bring material samples and mock-ups, so that the board, the designer and the owner can judge a finish in daylight. Where the work touches an older building, we investigate existing conditions early. The Bataan Memorial Building, listed on the National Register of Historic Places on February 28, 2025, illustrates how a building's later layers can hide as much as they reveal, and a survey before pricing is cheaper than surprises afterward.

Building beside occupied space

Christus St. Vincent Regional Medical Center completed a $44 million project in 2018 that added all-private patient rooms, a reminder that major building work often takes place inside operating institutions. In such settings, infection control, noise, vibration, dust, fire alarm shutdowns and wayfinding all affect how the work is done. We prepare a plan with the owner's safety and facilities staff before work begins.

On every project, our safety program covers site-specific hazards, training and inspections. For work in schools and hospitals, we add background checks for workers where required, controlled access to the site and clear separation between occupants and construction. Each phase has a documented start and end, and we do not move to the next until the current one is signed off.

Owners who choose this method

The method is especially common for healthcare systems, education institutions and public agencies, which value transparency and cost control. Private owners with complex programs, such as hospitality groups, choose it for the same reasons.

The Capitol complex, with executive agency offices, the New Mexico Supreme Court and the Court of Appeals, shows the range of public work in the city. Each agency has its own procedures and its own calendar, and a builder who joins early can help the owner find a path through them.

Rules, licenses and approvals

New Mexico's Construction Industries Division licenses contractors by classification, and the GB-98 General Building classification requires four years of foreman level experience, at least two of them commercial, and covers building work broadly. For CM at risk, the license held by the construction manager must match the work, and subcontractors must hold the proper licenses for their trades.

The project is permitted under the 2021 New Mexico Commercial Building Code, with the 2020 Electrical Code and the energy code applying to their parts. Procurement rules for public owners dictate how the construction manager is selected and how subcontracts are bid, and we follow them as the owner's counsel directs.

Bring us in while the design is open

If you are planning a public, institutional or complex private building, tell us about the program and the calendar. We will describe how the method would work for you. Owners near the capital may also read about the State Capitol and Bataan Memorial complex.

Questions Owners Ask

How is CM at risk different from design-build?

The owner contracts separately with the architect and with the construction manager. The builder advises during design and then guarantees a maximum price, but does not control the design. In design-build, one entity holds both contracts. Our page on design-build delivery describes that arrangement.

When is the price fixed?

Once the design is developed enough to price reliably, usually after design development or near completion of the construction documents. Before that, the owner receives estimates but no commitment. After the GMP is set, changes in scope adjust it through documented change orders.

Who keeps the savings?

The contract determines this. Some owners keep all savings, others share them with the construction manager as an incentive. We explain the options and recommend what fits your policies and your project.

Can the project stay open during construction?

Often, with careful planning. Phasing, temporary barriers, separate entrances and coordination with operations staff make it possible. We have the conversation with your facilities and safety teams before pricing the phases.

Should we start with estimating first?

It is a good habit. Our preconstruction estimating service gives an early view of cost and review time, and can lead naturally into a CM at risk agreement.