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Washoe County's RTC Selects Granite as CMAR for $32M Project

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Granite Construction Incorporated (GVA - Free Report) has been selected as the Construction Manager at Risk (CMAR) by the Regional Transportation Commission (“RTC”) of Washoe County for the Arlington Avenue Bridges Replacement Project.

This approximately $32 million project is funded by federal and local fuel tax funds. The construction phase is expected to start in May 2025 and will be completed by August 2026.

Understanding GVA’s Role in the Project

The Arlington Avenue Bridges Replacement Project aims to replace two structurally lacking bridges that cross the Truckee River in the Riverwalk District of downtown Reno, NV. The key highlights of the project include safety improvements, structural replacements, ensuring hydraulic capacity for the Truckee River, roadway and utility upgrades, and aesthetic enhancements.

As the CMAR, during the preconstruction and various design stages of this transformative project, Granite reviewed plans, specifications and quantities. It also held risk and innovation workshops and conducted resolution meetings to shed light on the work requirements. Undergoing this process resulted in a collective saving of $7 million on the budget, reduced six months from the initial schedule and ensured the completion of all the in-river work in one season.

Furthermore, GVA will be offering materials from its nearby Lockwood Facility for this project. The building materials include granular and structural backfill for the bridge structure's earthwork and HMA and AB for roadway reconstruction.

GVA’s Approach Toward Projects

Granite claims to be quite selective about the projects it bids on and mainly focuses on distinct categories. The company primarily concentrates on its home markets, wherein it is well acquainted with the owners, vendors and subcontractors and has a robust employee base.  It also remains focused on best-value projects where it can leverage the established relationships in its home markets to deliver larger projects while minimizing risk.

GVA conforms to the collaborative delivery methods utilized in best-value projects as they allow it to identify and mitigate risks in the early phases of the projects. The best-value projects comprise a construction manager, general contractor and progressive design builds, to name a few. Granite believes that the best-value projects are more efficiently constructed and have a solid growth trajectory. Its history of best-value projects reinstates this belief.

At the end of the second quarter of 2024, best-value projects represented 42% or $2.3 billion of Granite’s total Committed and Awarded Projects (CAP). The quarter-end value indicated an increase of $98 million year over year and $584 million from the second quarter of 2022.

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GVA’s shares have gained 21% in the past three months, against the Zacks Building Products - Heavy Construction industry’s 3.9% decline. Granite’s focus on operational excellence and strategic decision-making across its construction and materials segments will likely continue fostering growth.

GVA’s Zacks Rank & Other Key Picks

Granite currently carries a Zacks Rank #2 (Buy).

Here are other top-ranked stocks from the Construction sector.

Comfort Systems USA, Inc. (FIX - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

FIX delivered a trailing four-quarter earnings surprise of 20.6%, on average. The stock has risen 69.8% in the past year. The Zacks Consensus Estimate for FIX’s 2024 sales and earnings per share (EPS) indicates growth of 29.4% and 50.9%, respectively, from the prior-year levels.

Century Communities, Inc. (CCS - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 35.6%, on average. Shares of CCS gained 37.2% in the past year.

The consensus estimate for CCS’ 2024 sales and EPS implies an increase of 18.1% and 32.5%, respectively, from the prior-year levels.

Frontdoor, Inc. (FTDR - Free Report) presently sports a Zacks Rank of 1. FTDR delivered a trailing four-quarter earnings surprise of 279%, on average. The stock has increased 46.6% in the past year.

The Zacks Consensus Estimate for FTDR’s 2024 sales and EPS indicates an increase of 3% and 18.7%, respectively, from a year ago.


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