Perini Management Services Awarded $48.6 Million Alcatraz Island Historic Structures Stabilization and Rehabilitation Project

Rhea-AI Summary

Tutor Perini (NYSE: TPC) announced that its subsidiary, Perini Management Services, has secured a $48.6 million contract from the National Park Service for the Alcatraz Island Historic Structures Stabilization and Rehabilitation Project. The project aims to address structural deficiencies and deterioration in the Alcatraz Main Prison Building, including hazardous material abatement, concrete and steel repairs, and window stabilization. The goal is to enhance safety and seismic resistance for the 1.4 million annual visitors and staff. Work begins this month with expected substantial completion by summer 2027. The contract value is included in the Company’s backlog for Q2 2024.

Positive

• Perini Management Services awarded a $48.6 million contract.
• Project addresses critical structural deficiencies in Alcatraz Main Prison Building.
• Enhances seismic resistance and safety for 1.4 million annual visitors.
• Contract value added to backlog in Q2 2024.

Negative

• None.

Insights

Financial Analyst

Tutor Perini's new contract for $48.6 million to stabilize and rehabilitate Alcatraz Island's historic structures is a significant addition to the company's backlog. From a financial perspective, this contract boosts the company's order book for the second quarter of 2024, enhancing future revenue visibility. This kind of long-term project can provide stable revenue streams over multiple years, which is attractive to investors.

However, investors should also consider the potential challenges. The project involves complex rehabilitation work, which can be subject to delays and cost overruns. Furthermore, the company's ability to manage hazardous materials and comply with strict regulatory standards can affect profitability. It's also important to monitor how this project impacts the company's overall margin since construction projects involving historical sites often come with higher-than-average risks and costs.

Construction Industry Expert

The awarded project at Alcatraz Island is a testament to Tutor Perini’s expertise and reputation in handling complex, high-stakes construction projects. Rehabilitation of historic structures is a specialized field requiring a high level of skill and precision. The scope of this project, which includes hazardous material abatement, concrete repair and seismic strengthening, indicates a comprehensive approach to restoring the structural integrity of the site.

Successfully executing this project can enhance Tutor Perini’s standing in the construction industry, potentially leading to more high-profile contracts. However, the unique challenges of working on a historic site, such as maintaining the authenticity of the structures while ensuring modern safety standards, could pose significant hurdles. Moreover, the project's duration until 2027 means sustained resource allocation, which needs careful management to avoid impacting other ongoing projects.

FRAMINGHAM, Mass.--(BUSINESS WIRE)-- Tutor Perini Corporation (NYSE: TPC) (the “Company”), a leading civil, building and specialty construction company, announced today that its subsidiary, Perini Management Services, Inc., has been awarded a contract valued at approximately $48.6 million by the National Park Service for the Alcatraz Island Historic Structures Stabilization and Rehabilitation Project. Located in the San Francisco Bay, the project will address deterioration and structural deficiencies associated with the Alcatraz Main Prison Building, which includes both interior and exterior work. The scope of work includes abatement of hazardous materials in the exterior walls and interior construction areas, repair of concrete spalls, replacement of deteriorated steel reinforcement, strengthening of unreinforced concrete foundation walls, repair and stabilization of exterior windows, and installation of storm windows. The project will provide a safe facility for the 1.4 million annual visitors and staff by increasing the building's ability to resist seismic forces and resolving aging and weather-related impacts to the exterior walls.

Work is expected to begin this month with substantial completion anticipated in the summer of 2027. The contract value was 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/20240709022480/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 is the value of the contract awarded to Perini Management Services for the Alcatraz Island project?

The contract is valued at approximately $48.6 million.

What is the scope of work for the Alcatraz Island Historic Structures project?

The scope includes hazardous material abatement, concrete repairs, steel reinforcement replacement, window stabilization, and seismic improvements.

When is the expected completion date for the Alcatraz Island project?

Substantial completion is anticipated by the summer of 2027.

How many visitors will benefit from the Alcatraz Island project?

The project will enhance safety for 1.4 million annual visitors.

When was the contract value added to Tutor Perini's backlog?

The contract value was added to the backlog in Q2 2024.