Tutor Perini - O&G Joint Venture is the Apparent Selected Proposer for the New York City Borough-Based Jail System, Manhattan Facility

Rhea-AI Summary

Tutor Perini (NYSE: TPC), in a joint venture with O&G Industries, has been named the Apparent Selected Proposer for the new Manhattan Jail Facility project by the New York City Department of Design and Construction. The multi-billion-dollar design-build project is part of a four-jail initiative replacing the Rikers Island Jail Complex. The new facility will feature 886 beds, 125 below-grade parking spaces, and 20,000 square feet of community and commercial space. The project includes dedicated areas for on-site services, recreation, food services, and staff facilities. Tutor Perini leads the joint venture with 75% ownership, while O&G holds 25%, with HOK as the design partner.

Positive

• Selected as preferred contractor for multi-billion-dollar Manhattan jail project
• Leading position (75%) in strategic joint venture for major infrastructure project
• Project is part of larger NYC initiative, suggesting potential for additional contracts

Negative

• Contract terms and pricing still under negotiation
• Final award contingent on successful negotiations

Insights

Construction Industry Analyst

This major project win significantly strengthens Tutor Perini's position in the high-value government infrastructure sector. The Manhattan Jail Facility represents a multi-billion-dollar opportunity that will substantially boost TPC's backlog and provide steady revenue streams over several years. With TPC holding a 75% stake in the joint venture, this project could generate billions in revenue recognition.

The project's complexity and scale - including 886 beds, underground parking and mixed-use components - aligns well with TPC's core competencies in large-scale public works. The design-build contract structure typically offers better margin potential compared to traditional bid-build projects. The Borough-Based Jail System program's high-profile nature and essential role in replacing Rikers Island adds strategic importance beyond just financial metrics.

While final contract terms are still under negotiation, being named the Apparent Selected Proposer typically indicates a very high probability of securing the award. This positions TPC favorably for potential follow-on work in the broader jail replacement program.

NEW YORK--(BUSINESS WIRE)-- Tutor Perini Corporation (NYSE: TPC) (the “Company”), a leading civil, building and specialty construction company, announced today that the Company, in a joint venture with O&G Industries, Inc. (“O&G”), has been identified as the Apparent Selected Proposer by the New York City Department of Design and Construction (“DDC”) for the new Manhattan Jail Facility. This is one of four new jails that are being built in the boroughs of New York City to replace the Rikers Island Jail Complex, which will eventually be closed and decommissioned. The Company anticipates that it will be negotiating contractual terms and pricing for this multi-billion-dollar project with the owner and, if those negotiations are successful, expects to be awarded a design-build contract.

The project scope includes design and construction of a new state-of-the-art facility that will have dedicated space for on-site services and programming, indoor and outdoor recreation, food services, staff offices and facilities, amenities, below-grade accessory parking, and a secured entry. The new facility will contain 886 beds and provide 125 accessory parking spaces below grade for all staff and service providers. In addition, the facility will provide 20,000 square feet of community and commercial space on the ground floor.

Tutor Perini is the managing partner in the joint venture with O&G serving as a 25% partner. The joint venture’s design partner is HOK.

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/20241106322751/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 size of the new Manhattan Jail Facility project awarded to Tutor Perini (TPC)?

The project is a multi-billion-dollar design-build contract that includes an 886-bed facility with 125 parking spaces and 20,000 square feet of community space.

What is Tutor Perini's (TPC) ownership stake in the Manhattan Jail Facility joint venture?

Tutor Perini is the managing partner with 75% ownership, while O&G Industries holds 25% of the joint venture.

What is the current status of Tutor Perini's (TPC) Manhattan Jail Facility contract?

Tutor Perini has been named the Apparent Selected Proposer and is currently negotiating contractual terms and pricing with the NYC Department of Design and Construction.