Granite Announces Arlington Avenue Bridges Replacement Project in Reno, NV; Groundbreaking Included U.S. Secretary of Transportation Pete Buttigieg

Rhea-AI Summary

Granite (NYSE:GVA) has been awarded the role of Construction Manager at Risk (CMAR) for the Arlington Avenue Bridges Replacement Project in Reno, Nevada. The $32 million project, funded by federal and local fuel tax funds, aims to replace two structurally deficient bridges crossing the Truckee River in downtown Reno. Key objectives include enhancing safety for pedestrians, bicyclists, and drivers, improving hydraulic capacity, and upgrading roadways and utilities.

U.S. Secretary of Transportation Pete Buttigieg attended the groundbreaking, emphasizing the project's importance to the community. Granite's collaborative CMAR process resulted in $7 million in budget savings and a six-month reduction in the initial schedule. Construction is set to begin in May 2025 and conclude in August 2026, with Granite supplying materials from its nearby Lockwood Facility.

Positive

• Awarded $32 million Arlington Avenue Bridges Replacement Project in Reno, NV
• Collaborative CMAR process resulted in $7 million budget savings
• Project schedule reduced by six months from initial plan
• Granite to supply materials from nearby Lockwood Facility, potentially increasing profit margins

Negative

• Construction not set to begin until May 2025, delaying potential revenue recognition

Insights

Construction Industry Analyst

The Arlington Avenue Bridges Replacement Project represents a significant infrastructure investment for Granite (NYSE:GVA). With a $32 million contract value, this project will bolster Granite's backlog and strengthen its position in the Reno market. The company's role as Construction Manager at Risk (CMAR) demonstrates its expertise in complex urban projects and ability to manage large-scale infrastructure initiatives.

The collaborative approach during preconstruction, resulting in $7 million in savings and a six-month schedule reduction, showcases Granite's efficiency and value-engineering capabilities. This could positively impact profit margins and potentially lead to future contract wins. Additionally, Granite's ability to supply materials from its nearby Lockwood Facility indicates vertical integration, which could contribute to cost control and improved profitability.

While this single project may not significantly move the needle for a company of Granite's size, it reinforces their strong market position in infrastructure projects and their ability to secure high-profile contracts with federal involvement.

Urban Planning Expert

The Arlington Avenue Bridges Replacement Project is a crucial urban renewal initiative for Reno. By addressing structurally deficient bridges, the project will enhance safety and improve flood management capabilities, which are essential for the city's long-term resilience. The focus on multi-modal transportation improvements, including enhancements for pedestrians, bicyclists and transit riders, aligns with modern urban planning principles emphasizing sustainable and inclusive mobility.

The aesthetic improvements, including new lighting and landscaping, will likely boost the area's appeal, potentially stimulating economic activity in the Riverwalk District. This could lead to increased property values and business opportunities in the surrounding area. The project's emphasis on preserving the "beating heart of the city" while upgrading infrastructure demonstrates a balanced approach to urban development that respects community identity while addressing critical needs.

Overall, this project exemplifies how targeted infrastructure investments can catalyze broader urban revitalization efforts, potentially setting a precedent for similar projects in other cities.

Financial Analyst

For Granite (NYSE:GVA), this $32 million project represents a solid addition to its order book. While not transformative for a company with a market cap around $2 billion, it does provide stable revenue visibility for the next 2-3 years. The project's high-profile nature and federal involvement could enhance Granite's reputation and lead to future contract wins.

The $7 million cost savings achieved through the CMAR process is particularly noteworthy, potentially translating to improved profit margins. This efficiency could positively impact Granite's financials and demonstrate to investors the company's ability to manage costs effectively in a challenging inflationary environment.

Investors should also note the project's alignment with infrastructure spending trends, particularly those emphasizing safety and sustainability. As government infrastructure spending continues to increase, Granite's demonstrated expertise in this area could position it well for future growth. However, the long timeline (construction starting in 2025) means immediate financial impact will be

WATSONVILLE, Calif.--(BUSINESS WIRE)-- Granite (NYSE:GVA) is proud to announce its role as Construction Manager at Risk (CMAR) of the Arlington Avenue Bridges Replacement Project, a transformative initiative aimed at replacing the two structurally deficient bridges that cross the Truckee River in the Riverwalk District of downtown Reno, Nevada. The approximately $32 million project was awarded by the Regional Transportation Commission (RTC) of Washoe County and is funded by federal and local fuel tax funds.

Granite proudly announces the groundbreaking on the Arlington Avenue Bridges Replacement project in Reno, Nevada. This initiative will enhance safety and connectivity for the community, reflecting our commitment to delivering quality infrastructure solutions. (Photo: Business Wire)

At the groundbreaking event last week, U.S. Secretary of Transportation Pete Buttigieg emphasized the significance of the project, stating, “These bridges are structurally deficient, but they are also profoundly important. They serve as was said the beating heart of this city and are such an important part of both the function and the quality of life of this community.”

The Arlington Avenue Bridges Replacement Project will involve working within the waterway, utilizing two diversions to complete the necessary work. The project’s primary goals are to address the deteriorating condition of the bridge structures, enhance safety for pedestrians, bicyclists, transit riders, and drivers, and ensure sufficient hydraulic capacity for the Truckee River during flood events.

Key Highlights of the Project:

• Safety Improvements: Enhanced safety measures for pedestrians, bicyclists, kayakers, transit riders, and drivers in the Wingfield Park area.
• Structural Replacement: Replacement of the two nearly century-old Arlington Avenue bridges that have become structurally deficient
• Hydraulic Capacity: Improved hydraulic capacity to manage flood events effectively.
• Roadway and Utility Upgrades: Roadway improvements, utility upgrades, and relocations.
• Aesthetic Enhancements: New lighting, landscaping, and aesthetic improvements to enhance the visual appeal of downtown Reno.

“The Arlington Avenue Bridges Project is a signature initiative that will significantly enhance the landscape of downtown Reno,” explained Chris Burke, Granite Vice President of Regional Operations. “This project not only provides excellent backlog for Granite in Reno, but also strengthens our relationship with local entities through collaboration during the preconstruction phase,” he continued.

Granite initiated a series of partnership meetings with team members to foster early collaboration, which proved crucial for effective project management. During preconstruction and various design stages, Granite reviewed plans, specifications, and quantities, held risk and innovation workshops, and conducted resolution meetings to clarify work requirements. This collaborative CMAR process resulted in a collective saving of $7 million on the budget, a plan to complete all in-river work in one season, and a reduction of six months from the initial schedule.

Granite will provide materials from its nearby Lockwood Facility, including 10,000 tons of granular backfill for bridge structures earthwork, 9,000 tons of structural backfill for bridge structures earthwork, 1,400 tons HMA for roadway reconstruction, and 1,800 tons AB for roadway reconstruction.

The construction portion of this project is expected to begin in May 2025 and be completed in August 2026.

About Granite

Granite is America’s Infrastructure Company™. Incorporated since 1922, Granite (NYSE:GVA) is one of the largest diversified construction and construction materials companies in the United States as well as a full-suite civil construction provider. Granite’s Code of Conduct and strong Core Values guide the Company and its employees to uphold the highest ethical standards. Granite is an industry leader in safety and an award-winning firm in quality and sustainability. For more information, visit the Granite website, graniteconstruction.com, and connect with Granite on LinkedIn, X, Facebook, and Instagram.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240903711325/en/

Granite Contacts

Media

Erin Kuhlman 831-768-4111

Investors

Wenjun Xu - 831-761-7861

Source: Granite

FAQ

What is the value of the Arlington Avenue Bridges Replacement Project awarded to Granite (GVA)?

The Arlington Avenue Bridges Replacement Project awarded to Granite (GVA) is valued at approximately $32 million.

When is construction expected to begin and end for Granite's (GVA) Arlington Avenue Bridges project in Reno?

Construction for Granite's (GVA) Arlington Avenue Bridges project in Reno is expected to begin in May 2025 and be completed in August 2026.

How much did Granite (GVA) save on the budget for the Arlington Avenue Bridges project through its CMAR process?

Through its collaborative Construction Manager at Risk (CMAR) process, Granite (GVA) achieved a collective saving of $7 million on the budget for the Arlington Avenue Bridges project.

What materials will Granite (GVA) supply from its Lockwood Facility for the Arlington Avenue Bridges project?

Granite (GVA) will supply 10,000 tons of granular backfill, 9,000 tons of structural backfill, 1,400 tons of HMA for roadway reconstruction, and 1,800 tons of AB for roadway reconstruction from its Lockwood Facility.