Lunda Construction Awarded $53.6 Million Kellogg/3rd Street Bridge Replacement Project

Rhea-AI Summary

Tutor Perini (NYSE: TPC) announced that its subsidiary, Lunda Construction Company, has secured a $53.6 million contract from the City of St. Paul, Minnesota. The project entails replacing the Kellogg/3rd Street Bridge with a new 2,100-foot bridge featuring 13 spans, four traffic lanes, and two 12-foot-wide barrier-separated trails for bicycles and pedestrians. Construction is set to commence in Q3 2024 and is expected to be substantially complete by fall 2027. This contract will be added to Tutor Perini's backlog in Q2 2024.

Positive

• Lunda Construction secured a $53.6 million project.
• The new bridge will be 2,100 feet in length and include 13 spans.
• The project features four traffic lanes and two 12-foot-wide trails for bicycles and pedestrians.
• The contract will boost the Company's backlog in Q2 2024.

Negative

• None.

Insights

Financial Analyst

The award of the Kellogg/3rd Street Bridge Replacement Project to Lunda Construction Company, a subsidiary of Tutor Perini, is a positive development for the company's financial outlook. The project, valued at $53.6 million, will be added to the company’s backlog in the second quarter of 2024, which suggests a future revenue stream. This is particularly important for investors as a strong backlog can be a sign of a company's robust pipeline of future work, enhancing financial stability and predictability. The project's completion timeline, stretching to fall 2027, indicates sustained revenue generation over several years, contributing to long-term financial health.

From a financial perspective, this project may also have a favorable impact on the company’s margins if managed effectively. Large infrastructure projects often provide economies of scale, allowing the company to potentially improve its profit margins through efficient resource management. Moreover, such projects can improve the company’s reputation and position it for future large-scale project bids.

However, investors should be mindful of potential risks, such as project delays or cost overruns, which could negatively affect financial performance. Monitoring quarterly updates for progress reports and any changes in estimated costs will be crucial.

Rating: 1

Construction Industry Expert

This project highlights Lunda Construction Company's capability and expertise in large-scale infrastructure projects. Winning such significant contracts can bolster the company's standing in the civil construction sector, positioning it as a key player in the industry. The scope of work, which includes constructing a new 2,100-foot bridge with 13 spans, suggests that the company is trusted with complex and substantial projects. This can serve as a strong endorsement of their technical skills and project management abilities.

The project also involves the construction of 12-foot-wide trails for bicycles and pedestrians, separated from vehicular traffic by a concrete barrier. This design aligns with current trends in urban planning that prioritize multi-modal transportation and safety. Successfully completing this project could set a precedence for Lunda in securing similar contracts focusing on integrated transportation solutions, which are increasingly in demand.

However, the long timeline until fall 2027 necessitates consistent performance and risk management over several years. Any disruptions, be they environmental, logistical, or regulatory, could impact the project’s progress and the company's reputation.

Rating: 1

BLACK RIVER FALLS, Wisc.--(BUSINESS WIRE)-- Tutor Perini Corporation (NYSE: TPC) (the “Company”), a leading civil, building and specialty construction company, announced today that its subsidiary, Lunda Construction Company, has been awarded a project by the City of St. Paul, Minnesota, valued at approximately $53.6 million for the Kellogg/3^rd Street Bridge Replacement Project. The scope of work includes construction of a new bridge with 13 spans totaling over 2,100 feet in length that will have four lanes of traffic (two in each direction) and a barrier-separated trail on both sides of the roadway. The trails will each be 12 feet wide, shared by bicycles and pedestrians, and separated from vehicle traffic by a concrete barrier.

Work is expected to begin in the third quarter of 2024 with substantial completion anticipated in the fall of 2027. The contract value will be added to the Company’s backlog 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/20240620709997/en/

Tutor Perini Corporation

Jorge Casado, 818-362-8391

Vice President, Investor Relations and Corporate Communications

www.tutorperini.com

Source: Tutor Perini Corporation

FAQ

What project has Lunda Construction been awarded?

Lunda Construction has been awarded the $53.6 million Kellogg/3rd Street Bridge Replacement Project by the City of St. Paul, Minnesota.

What is the value of the new contract awarded to Lunda Construction?

The contract is valued at approximately $53.6 million.

When will construction of the Kellogg/3rd Street Bridge Replacement Project begin?

Construction is expected to begin in the third quarter of 2024.

When is the Kellogg/3rd Street Bridge Replacement Project expected to be completed?

The project is expected to achieve substantial completion by fall 2027.

How will the new Kellogg/3rd Street Bridge be structured?

The new bridge will be 2,100 feet in length, consisting of 13 spans, four traffic lanes, and two barrier-separated 12-foot-wide trails for bicycles and pedestrians.

How will the Kellogg/3rd Street Bridge Replacement Project impact Tutor Perini's financials?

The $53.6 million contract will be added to Tutor Perini's backlog in the second quarter of 2024.