Sterling and Granite Joint Venture Awarded $348 Million Progressive Design-Build Project in Utah
January 06 2020 - 4:15PM
Business Wire
Sterling Construction Company, Inc. (NasdaqGS: STRL) (“Sterling”
or “the Company”) today announced that Oak Hills Constructors, a
joint venture between Sterling’s wholly owned subsidiary, Ralph L.
Wadsworth, and Granite Construction Company, Inc. (“Granite”), has
been awarded a $348 million progressive design-build contract by
the Utah Department of Transportation (UDOT) for the US-89
Farmington to I-84 project in Davis and Weber Counties, Utah.
The project will entail the widening of nine miles of US-89 from
two lanes in each direction to three, the addition of four new
interchanges, and two grade separated intersections. This includes
extending the existing frontage road system to help local traffic
access new interchanges and crossings more efficiently. In
addition, crews will excavate two million cubic yards of material
and relocate 150 miles of utilities. Approximately 300,000 tons of
hot-mix asphalt and 100,000 tons of base rock will be provided by
Granite facilities.
“We look forward to working with Granite on this sizeable
project, which will improve safety and mobility on a busy stretch
of highway north of Salt Lake City,” stated Joe Cutillo, Sterling’s
CEO. “Sterling and Granite have a history of successful joint
venture projects and we anticipate continued positive results on
this job. Importantly, as a design-build contract, we were selected
for this work based on our collective qualifications, as opposed to
a low-bid, which reflects our level of experience and expertise
with large scale heavy civil infrastructure improvement. We find
design-build project opportunities very attractive and expect this
type of work to become a greater portion of our overall heavy civil
revenues in the future.”
Mr. Cutillo concluded by saying, “We are very glad to work once
again with UDOT and are looking forward to the continuation of this
partnership as we endeavor to upgrade and improve Utah’s
transportation infrastructure.”
Oak Hills Constructors is a 60/40 Granite and Ralph L. Wadsworth
joint venture. Oak Hill Constructors estimates the project will
employ an average of 150 people with construction scheduled to
begin in early 2020. The estimated completion for the project is in
2023. Sterling anticipates booking its 40% portion of the total
contract value award or approximately $140 million in its fourth
quarter 2019 backlog.
Sterling, a Delaware corporation, is a construction company that
specializes in heavy civil infrastructure construction and
rehabilitation, construction site excavation and improvement, and
residential construction projects, primarily across the southern
United States, the Rocky Mountain states, California and Hawaii.
Heavy civil construction projects include highways, roads, bridges,
airfields, ports, light rail, water, wastewater and storm drainage
systems, foundations for multi-family homes, commercial concrete
projects and parking structures. Site excavation and improvement
entails construction site preparation primarily in the Southeast
region of the United States for blue-chip customers in the
distribution center, warehousing, e-commerce, data center, big box
retail and energy sectors, as well as other growing end markets.
Residential construction projects include concrete foundations for
single-family homes in Texas.
This press release includes certain statements that fall within
the definition of “forward-looking statements” under the Private
Securities Litigation Reform Act of 1995. Any such statements are
subject to risks and uncertainties, including overall economic and
market conditions, federal, state and local government funding,
competitors’ and customers’ actions, and weather conditions, which
could cause actual results to differ materially from those
anticipated, including those risks identified in the Company’s
filings with the Securities and Exchange Commission. Accordingly,
such statements should be considered in light of these risks. Any
prediction by the Company is only a statement of management’s
belief at the time the prediction is made. There can be no
assurance that any prediction once made will continue thereafter to
reflect management’s belief, and the Company does not undertake to
update publicly its predictions or to make voluntary additional
disclosures of nonpublic information, whether as a result of new
information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20200106005801/en/
Sterling Construction Company, Inc.Ron Ballschmiede, Chief
Financial Officer281-214-0777
Investor Relations Counsel:The Equity Group Inc.Fred
Buonocore, CFA 212-836-9607Mike Gaudreau 212-836-9620
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