Granite Construction (GVA) Wins $36M Contract from Caltrans

Granite Construction Incorporated GVA has been awarded a $36 million contract by the California Department of Transportation (Caltrans) for the Interstate 15 Agriculture Inspection Station project in Nipton, CA.

Located near the Nevada/California border, the Interstate 15 Agriculture Inspection Station project is in the second phase of the Joint Port of Entry Project ("JPOE"). The second phase of the JPOE Project involves construction of the Agriculture Inspection Station for the California Department of Food and Agriculture.

Per the project, Granite Construction will build five buildings, along with related landscaping, striping, guardrail and fencing. The scope of work also includes earthwork, asphalt paving, bridge work and concrete paving.

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Construction work has been slated to begin in third-quarter 2017 and is expected to close by second-quarter 2018. Granite Construction will book the contract into its second-quarter 2017 backlog.

The company's total contract backlog inched up 1.55% to $3.44 billion in first-quarter 2017. Granite Construction intends to keep focusing on the execution of its large project backlog, apart from bidding for and winning new deals and contracts.

Granite Construction remains optimistic about the recent approval of SB 1, the Road Repair and Accountability Act of 2017, which commits to more than $52 billion of incremental investment in the state over the next decade. In addition, nearly $190 billion of long-term local measures were passed by voters in California and Washington State in Nov 2016, highlighting a remarkable positive shift in public infrastructure investment.

In the last year, Granite Construction has underperformed the Zacks classified Building Products - Heavy Construction sub-industry with respect to price performance. The stock gained around 6.9%, while the industry recorded a gain of 3.8% in the same time frame.