Black Construction-Tutor Perini Joint Venture Awarded $74.4 Million Child Development Center at Andersen Air Force Base, Guam
Tutor Perini (TPC) has announced that its subsidiary, Black Construction , in a joint venture, has been awarded a $74.4 million contract by the U.S. Naval Facilities Engineering Systems Command, Pacific District.
The contract is for the construction of a Child Development Center at Andersen Air Force Base in Guam.
The project involves building a single-story, reinforced concrete facility with child development spaces, administrative areas, staff and facility support spaces, and outdoor activity areas. The construction includes foundations, roofing, utilities, and environmental mitigation work.
Work is set to commence this summer, with substantial completion expected by summer 2026. The contract value will be added to the Company's backlog in Q2 2024.
- Awarded $74.4 million contract by the U.S. Naval Facilities Engineering Systems Command.
- The project adds to the Company's backlog starting Q2 2024.
- Work is expected to begin this summer, providing immediate initiation of revenue recognition.
- Substantial completion anticipated by summer 2026, giving a clear project timeline.
- Long project timeline extending to 2026 could delay revenue realization.
- Potential risks associated with environmental mitigation, including cultural and natural resources, munitions, and explosives.
Insights
Tutor Perini Corporation has secured a
Considering the scale and duration of this project, it not only provides revenue visibility but also strengthens Tutor Perini's relationship with the U.S. Naval Facilities Engineering Systems Command. This could potentially lead to more such contracts in the future. However, investors should monitor the company's management of project costs and timelines, which are essential for maintaining profitability.
In the short term, the announcement could positively impact the stock price due to increased investor confidence. Long-term implications are also favorable as the project adds substantial value to the company's portfolio and could lead to further governmental contracts.
This contract involves building a Child Development Center at Andersen Air Force Base, Guam. The project encompasses various construction aspects including reinforced concrete foundations, roofing, electrical and telecommunication utilities. Given the complex nature of the work, involving environmental mitigation and explosives of concern, it showcases Tutor Perini's expertise and capacity to handle intricate and large-scale projects.
For retail investors, understanding that this type of work can position Tutor Perini as a preferred contractor for similar future projects is important. The execution of such a project will bolster the company's reputation in the government sector, leading to increased business opportunities. Additionally, the completion timeline aligning with summer 2026 provides a multi-year revenue stream, ensuring business continuity.
However, the construction industry faces risks such as fluctuating material costs and labor shortages, which could impact project profitability. Investors should keep an eye on these factors as they could affect the overall outcome of the project.
The scope of work includes construction of a Child Development Center facility with privately owned vehicle parking. The facility will feature a single-story, reinforced concrete building consisting of child development spaces, core administration, staff support, facility support spaces, outdoor storage and activity spaces and incidental related work. Construction will also include shallow, reinforced concrete foundations, slabs, walls, floors and roof, fluid applied roofing, doors, windows, louvers, exterior and interior finishes, kitchen equipment, signage, plumbing, ventilation, electrical power, lighting and telecommunications. Sitework will include grading, landscaping, walkways, fencing, equipment and trash enclosures, sewer, water, electrical and telecommunication utilities and environmental mitigation consisting of cultural and natural resources, and munitions, explosives of concern and incidental related work.
Work is expected to begin this summer with substantial completion anticipated in the summer of 2026. The contract value will be included in the Company’s backlog beginning in the second quarter of 2024.
About Tutor Perini Corporation
Tutor Perini Corporation is a leading civil, building and specialty construction company offering diversified general contracting and design-build services to private customers and public agencies throughout the world. We have provided construction services since 1894 and have established a strong reputation within our markets by executing large, complex projects on time and within budget, while adhering to strict quality control measures. We offer general contracting, pre-construction planning and comprehensive project management services, including planning and scheduling of manpower, equipment, materials and subcontractors required for a project. We also offer self-performed construction services including site work, concrete forming and placement, steel erection, electrical, mechanical, plumbing and heating, ventilation and air conditioning (HVAC).
View source version on businesswire.com: https://www.businesswire.com/news/home/20240529416733/en/
Tutor Perini Corporation
Jorge Casado, 818-362-8391
Vice President, Investor Relations and Corporate Communications
www.tutorperini.com
Source: Tutor Perini Corporation
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