Granite Embarks on Rehabilitation Project Near Stratford, California

Rhea-AI Summary

Granite (NYSE:GVA) has secured a $15 million contract from the California Department of Transportation (Caltrans) to rehabilitate pavement along State Route 41 (SR41) near Stratford, California. The project, funded by Caltrans and included in Granite’s Q2 CAP, involves removing and replacing failed pavement with 49,400 tons of Hot Mix Asphalt (HMA) and adding 19,100 tons of Rubberized Hot Mix Asphalt (RHMA) from Granite’s Coalinga plant. Other tasks include upgrading guard rails, barriers, and bridge approaches. The project is scheduled to start in July 2024 and finish by July 2025.

Positive

• $15 million contract adds to Granite's revenue.
• Project funding is confirmed from Caltrans.
• Inclusion in Granite’s Q2 CAP provides certainty.
• Utilization of Granite’s Coalinga plant indicates operational efficiency.
• Synergies with existing projects along SR41 enhance resource optimization.
• Expected to improve travel safety and efficiency.

Negative

• Project commencement is delayed until July 2024.
• Completion is expected to take a full year, potentially affecting cash flow.
• Resource allocation to multiple projects could strain management.

WATSONVILLE, Calif.--(BUSINESS WIRE)-- Granite (NYSE:GVA) has been awarded an approximately $15 million contract by the California Department of Transportation (Caltrans) to rehabilitate pavement along State Route 41 (SR41) near Stratford, California. Project funding comes from Caltrans and will be included in Granite’s second-quarter CAP.

This project aims to rehabilitate the pavement, providing a smoother ride and reducing maintenance demands. The rehabilitation will involve removing and replacing failed pavement areas with 49,400 tons of Hot Mix Asphalt (HMA) and then placing a surface course of 19,100 tons of Rubberized Hot Mix Asphalt (RHMA) which will be supplied by Granite’s Coalinga plant in Fresno County, California.

In addition to the pavement rehabilitation, culverts along the route will be lengthened and rehabilitated, guard railing and barriers will be upgraded, and failing bridge approaches pavement will be replaced with concrete approaches slabs.

“Our team is proud to take on the challenge of enhancing SR41, a vital connector between the Central Valley and the Central Coast,” said Carter Rohrbough, Granite Vice President of Regional Operations. “With numerous pavement failures impacting this heavily traveled two-lane highway, we’re committed to delivering smoother roads and reducing maintenance burdens for Caltrans crews. Our expertise and dedication will ensure a safer and more efficient journey for all travelers.”

Granite has two other projects under construction along SR41 that join or are in the middle of this new project. Several other projects in proximity will allow for efficient movement and synergies with crews and resources, making this a strategic win for the company.

The project is expected to begin in July 2024 and be completed in July of 2025.

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/20240613136440/en/

Granite Contacts

Media

Erin Kuhlman 831-768-4111

Investors

Wenjun Xu - 831-761-7861

Source: Granite Construction Incorporated

FAQ

What is Granite's new contract with Caltrans about?

Granite has been awarded a $15 million contract by Caltrans to rehabilitate pavement on State Route 41 near Stratford, California.

When will Granite's SR41 rehabilitation project start and end?

The project is scheduled to begin in July 2024 and be completed by July 2025.

What materials will be used in Granite’s SR41 project?

Granite will use 49,400 tons of Hot Mix Asphalt (HMA) and 19,100 tons of Rubberized Hot Mix Asphalt (RHMA) from its Coalinga plant.

How is Granite's SR41 project funded?

The project is funded by Caltrans and will be included in Granite's Q2 CAP.

What additional works are included in Granite's SR41 project?

The project includes upgrading guard rails, barriers, and replacing bridge approaches with concrete slabs.

Why is Granite undertaking the SR41 pavement rehabilitation?

The goal is to provide smoother roads, reduce maintenance demands, and ensure safer travel.