Sterling Construction (STRL) Wins $21.5M Contract From CDOT

Sterling Construction Co. Inc. (NASDAQ:STRL) announced that its subsidiary – Ralph L. Wadsworth Construction Company, LLC (RLW) – has won a contract worth around $21.5 million from the Colorado Department of Transportation (CDOT) to reconstruct the Crossroads Bridge on I-25 in Larimer County, CO.

Per the contract, Sterling Construction will be responsible for the reconstruction of the I-25 interchange at Crossroads Boulevard and the associated roadway. The project work includes the removal of two existing three-span bridges and their replacement with two wider single-span bridges. In addition, approximately 1.5 miles of the I-25 roadway will be reconstructed.

The project will help to alleviate a traffic flow squeeze under the I-25 bridges across Crossroads Boulevard. The two-lane road under the bridges is often congested, especially during rush hour and periodic special events in the area.

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Replacing the I-25 bridges with wider-span bridges and a broader road beneath will certainly reduce the inconvenience drivers have experienced in the past. Traffic on I-25 will be maintained through the use of a temporary-paved crossover and a temporary bridge structure during the work. Construction is scheduled to begin in Sep2016 and be completed by the end of 2017.

At Jun 30, 2016, Sterling Construction’s backlog stood at $810 million compared to the end of second-quarter 2015 backlog of $243 million. Total backlog at the end of 2016 second-quarter, including projects where the company was the apparent low bidder but the contracts had not yet been signed, totaled $919 million, consistent with the end of the first quarter of 2016. The company expects the trend to continue throughout the balance of this year and beyond.

Houston, TX-based Sterling Construction is a leading heavy civil construction company engaged in building and reconstruction of transportation and water infrastructure projects in Texas, Utah, Nevada, Arizona, California and other states. Its transportation infrastructure projects include highways, roads, bridges, and light rail; and its water infrastructure projects comprise water, wastewater, and storm drainage systems.

Sterling Construction currently carries a Zacks Rank #4 (Sell).

Some better ranked stocks in the sector include MasTec, Inc. (NYSE:MTZ) , EMCOR Group Inc. (NYSE:EME) and Boise Cascade Company (NYSE:BCC) . While MasTec sports a Zacks Rank #1 (Strong Buy), EMCOR Group and Boise Cascade Company carry a Zacks Rank #2 (Buy).