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Granite Subsidiary Gets $119M in Chicago Contracts
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Granite Construction Incorporated’s (GVA - Free Report) wholly-owned subsidiary, Kenny Construction Company has been awarded four sewer renewal contracts worth $119 million, by the City of Chicago.
Chicago has over 4,600 miles of sewer. Every year, the city renews approximately 50 miles of 8-inch to 48-inch diameter sewer pipes and 5,000 sewer structures. The scope of work of the contracts is to renew the aging brick sewers.
Per the contract, Kenny Construction will be responsible for the cured-in-place pipe (CIPP) lining and CIPP structure lining for two years. There is a scope of extension of one year. The benefit of CIPP lining and structure lining is that it helps extend the life of hydraulically adequate sewers at lower cost than excavating and replacing sewers in the streets. Moreover, the process is less disruptive to traffic during construction.
The contracts, part of a multi-year program, will be booked into backlog as individual task orders are issued. The project is funded by the City of Chicago and Illinois Environmental Protection Agency. The construction, which is slated to begin in the second quarter of 2016, is expected to be completed by May 2019.
At the end of first-quarter 2016, Granite Construction’s total contract backlog was at a record $3.4 billion, up 15.3% year over year. Solid backlog trends and a relentless focus on execution will continue to provide the company opportunities for both top and bottom line growth.
The current economic environment bodes well for the company’s planned growth in 2016 and additional opportunities in 2017. With strong committed volumes across geographies at the Construction Materials segment, the business will improve in 2016.
In general, Granite Construction’s vertically integrated business remains on track to drive growth in 2016, while large project teams continue to focus on improving project execution to deliver better financial results. Moreover, the company intends to focus on the execution of its large project backlog, apart from bidding for and winning new deals and contracts.
Granite Construction currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the sector include Dycom Industries Inc. (DY - Free Report) , Tutor Perini Corp. (TPC - Free Report) and TopBuild Corp. (BLD - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy).
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Granite Subsidiary Gets $119M in Chicago Contracts
Granite Construction Incorporated’s (GVA - Free Report) wholly-owned subsidiary, Kenny Construction Company has been awarded four sewer renewal contracts worth $119 million, by the City of Chicago.
Chicago has over 4,600 miles of sewer. Every year, the city renews approximately 50 miles of 8-inch to 48-inch diameter sewer pipes and 5,000 sewer structures. The scope of work of the contracts is to renew the aging brick sewers.
Per the contract, Kenny Construction will be responsible for the cured-in-place pipe (CIPP) lining and CIPP structure lining for two years. There is a scope of extension of one year. The benefit of CIPP lining and structure lining is that it helps extend the life of hydraulically adequate sewers at lower cost than excavating and replacing sewers in the streets. Moreover, the process is less disruptive to traffic during construction.
The contracts, part of a multi-year program, will be booked into backlog as individual task orders are issued. The project is funded by the City of Chicago and Illinois Environmental Protection Agency. The construction, which is slated to begin in the second quarter of 2016, is expected to be completed by May 2019.
GRANITE CONSTRU Price
GRANITE CONSTRU Price | GRANITE CONSTRU Quote
At the end of first-quarter 2016, Granite Construction’s total contract backlog was at a record $3.4 billion, up 15.3% year over year. Solid backlog trends and a relentless focus on execution will continue to provide the company opportunities for both top and bottom line growth.
The current economic environment bodes well for the company’s planned growth in 2016 and additional opportunities in 2017. With strong committed volumes across geographies at the Construction Materials segment, the business will improve in 2016.
In general, Granite Construction’s vertically integrated business remains on track to drive growth in 2016, while large project teams continue to focus on improving project execution to deliver better financial results. Moreover, the company intends to focus on the execution of its large project backlog, apart from bidding for and winning new deals and contracts.
Granite Construction currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the sector include Dycom Industries Inc. (DY - Free Report) , Tutor Perini Corp. (TPC - Free Report) and TopBuild Corp. (BLD - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>