Granite Awarded Final Construction Option in Denali National Park

Rhea-AI Summary

Granite (GVA) completes preconstruction services and secures $112 million construction option for Polychrome Area Improvements project in Denali National Park, Alaska, totaling $207,791,533. The project involves building a steel truss bridge to connect the western half of the park cut off by a landslide since 2021.

Financial Analyst

Granite's final construction contract award of $112 million for the Polychrome Area Improvements project signifies a significant addition to the company's backlog and is likely to have a positive impact on its financial performance. Given the total value of the project at over $207 million, this contract represents a substantial portion of Granite's current fiscal year revenue, assuming an average revenue base for a company of its size in the construction industry. It's important to note that large-scale infrastructure projects such as this often have a long-term revenue recognition cycle, which can smooth out earnings over several years, providing a level of financial stability and predictability.

Investors should monitor the progress of the project closely, as any delays or cost overruns could impact future earnings. Conversely, successful execution may lead to further government contracts, enhancing the company's reputation and competitive position. This project could also serve as a case study for Granite's expertise in complex infrastructure solutions, potentially leading to similar opportunities in the future.

Market Research Analyst

The awarding of the construction contract to Granite by the FHWA underscores the company's strong position in the government contracting market, particularly for critical infrastructure projects. The construction of the bridge over the Pretty Rocks Landslide is not only significant for Granite's portfolio but also for the accessibility and long-term viability of Denali National Park. The project's requirement for specialized techniques, such as the use of thermosyphons to address permafrost issues, highlights the growing need for innovative solutions in infrastructure, especially in challenging environments.

From a market perspective, Granite's ability to secure and execute such a complex project could signal to investors that the company possesses the necessary technical expertise and management capabilities to undertake similar high-value projects in the future. This may positively influence investor sentiment and could be reflected in the company's stock performance as the project progresses.

Civil Engineering Expert

The technical aspects of the Polychrome Area Improvements project, such as the construction of a 475-foot-long single-span steel truss bridge and the use of thermosyphons, demonstrate Granite's capability in advanced engineering and construction methods. The use of thermosyphons, a passive heat exchange system, is particularly noteworthy as it illustrates the company's commitment to sustainable engineering practices and its ability to work within the unique environmental constraints posed by permafrost regions.

The successful completion of this project could set a precedent for future infrastructure projects in similar geological and environmental conditions. For stakeholders, this could mean an expansion of Granite's market share in niche construction sectors that require such specialized approaches, potentially leading to long-term growth and an enhanced industry standing.

WATSONVILLE, Calif.--(BUSINESS WIRE)-- Granite (NYSE:GVA) successfully finished preconstruction services and, on February 1, 2024, was awarded the final $112 million construction option for the Polychrome Area Improvements Construction Manager/General Contractor (CM/GC) project by the Federal Highway Administration (FHWA) in Denali National Park, Alaska. This last construction award completes the scope of work the National Park Service (NPS) has planned for the project. The combined value of all awarded options is $207,791,533.

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A Granite drill rig stands at the ready while the majestic snowcapped Denali is seen in the distance. (Photo: Business Wire)

“We are pleased to have effectively delivered preconstruction services and successfully negotiated all the construction phase contracts,” said Derek Betts, Granite VP of Regional Operations. “As a partner with the FHWA and NPS, we look forward to building this critical bridge and providing the public with access to the western half of the park that has been cut off by a landslide since 2021.”

The Polychrome Area Improvements project is at the Pretty Rocks Landslide which intersects Denali Park Road near its midpoint at Mile 45.4. The project scope includes construction of an approximately 475-foot-long single-span steel truss bridge to span the active landslide. Supporting the bridge and improving ground conditions is a combination of earthwork, micro piles, rock anchors, soil nails, precast/post tensioned concrete abutments, and thermosyphons. Thermosyphons are part of a passive heat exchange system designed to prevent permafrost from thawing and creating instability.

Construction of the Polychrome Area Improvements project began in 2023 with mobilization, development of a worker camp, pioneering access across a landslide, blasting, and mass earthwork. Work planned for the 2024 season includes completion of mass earthwork, construction of the bridge abutments, installation of a temporary launching system, and partial erection of the structural steel bridge. Bridge erection will continue through 2025, along with launching of the structure to span the landslide. For the 2026 season, construction includes setting precast bridge approaches, building a retaining wall, installing thermosyphon condensers, coating the bridge deck, and demobilization.

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/20240213096076/en/

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Source: Granite

What project did Granite (GVA) complete preconstruction services for?

Granite completed preconstruction services for the Polychrome Area Improvements project in Denali National Park, Alaska.

How much was Granite (GVA) awarded for the construction option?

Granite was awarded a final $112 million construction option for the project.

What is the total combined value of all awarded options for the project?

The total combined value of all awarded options for the project is $207,791,533.

What is the scope of work planned for the Polychrome Area Improvements project?

The scope of work includes building a 475-foot-long single-span steel truss bridge to span an active landslide, along with various support structures.

When did construction of the Polychrome Area Improvements project begin?

Construction of the project began in 2023 and is planned to continue through the 2026 season.