Granite Construction Incorporated · NYSE:GVA
Granite Construction — Investor Day (2005)
22 slides from Granite Construction's investor day presentation, 2005
Slide 1: 2005 Analyst Day: A look at Risk from the Field
Granite Construction Incorporated 2005 ANALYST DAY A look at Risk from the Field - Why we do what we do Mike Donnino Sr. Vice President & Heavy Construction Division Manager
Slide 2: Forward-Looking Disclaimer
Forward-Looking Disclaimer The following presentation contains forward-looking statements regarding the outlook for our business. Forward-looking statements may be identified by the use of words like "plan," "expect," "aim", "believe," "project," "anticipate," "intend," "estimate," "will," "should,"
Slide 3: Project Risk vs. Opportunity
Project Risk vs. Opportunity Hathaway Bridge, Panama City, FL
Slide 4: Finding Jobs to Bid
Opportunity Finding Jobs to Bid – Agency Letting Schedules – Services (Amtech, CMD, Dodge Report) – Business Development – Invitations – Engineering Firms
Slide 5: Choosing the right opportunity to bid
Choosing the right opportunity to bid depends on many factors. Current backlog Owner & history with Owner Mix of current backlog Expected number of Size of project bidders Type of project Type of contract (I.e. unit price, lump sum, History on similar etc) work Expected Cash Flow
Slide 6: Ideal Bid Opportunity
Ideal Bid Opportunity > $50,000,000 2 – 4 Bidders Complex Large schedule implications Lots of upside potential Distinct advantages Familiar Owner SH190/IH35E, Carrolton, TX
Slide 7: Projects we try to avoid
Projects we try to avoid More than 6 Bidders < $25,000,000 Straight forward New or Private Owner Unfamiliar with type of work Unacceptable contract language
Slide 8: How does Risk affect our choice?
How does Risk affect our choice ? We price it like everything else !
Slide 9: Preparing Bids
Preparing Bids Waters Ridge, Lewisville, TX
Slide 10: Project Bid Timeline
Project Bid Timeline Order plans and Methods meeting specs Site Investigation Bid item assignments – Site visits Preliminary take-off – Test digs Preliminary Design – Material Testing (DB only)
Slide 11: Project Bid Timeline
Project Bid Timeline RFQ (if required) Prepare Estimate Prepare project schedule Methods meeting Bid review Final adjustments & Bid closing
Slide 12: Project Bid Timeline
Project Bid Timeline Final adjustments & Bid closing – Equipment – Rentals, Fuel, Ownership – Insurance – WC, GL, BR – Escalations – Labor, Equipment – Subcontractor & supplier quotes – Risk SH 130 (proposal), Austin, TX
Slide 13: Sub's & supplier Comparisons
Sub’s & supplier Comparisons Price – More competitive – Less risk – Less control Schedule Bonding Past performance
Slide 14: Risk
Risk Schedule – Weather, Liquidated Damages, number of crews, etc. Mix of work – Labor & Equipment versus Material & subcontractors) Type of work Other Table Rock Dam, Branson, MO
Slide 15: Managing Risk
Managing Risk Ft Smith Dam, Ft Smith Arkansas
Slide 16: Post Award Risk Management
Post Award Risk Management Partnering Pre-construction meetings – Owner – Project Team Annual Project Safety Plans Job Hazard Analysis (JHA’s) Take 5 for Safety Daily game plans Weekly meetings Weekly & monthly reports Big Brown RR, Fairfield, TX
Slide 17: Sr. Management Review
Sr. Management Review US 75 –S1, Dallas, TX Bid lists Bid Reviews Monthly Impact Analysis Quarterly Cost/Revenue Forecasts Division Results Review
Slide 18: Looking Ahead...
Looking Ahead... e@@ GRANITE 2005
Slide 19: HCD's Strategic Plan
HCD’s Strategic Plan Mission Statement Expand HCD’s position as a Nationally Recognized Quality Builder Delivering Quality Projects while Maintaining a Commitment to Employee Development and Our Core Values Imperatives 1. Regional Diversification Dictated by Market 2. Attract, Develop, Reward & Reta
Slide 20: HCD Business Outlook
HCD Business Outlook Increased Federal Funding – More Bread & Butter DOT projects – More Mass Transit & Light Rail Projects Projects of Interest $100 mil - $500 mil range – IH35/IH694 (NPR) $120 mil – LA Exposition LRT (NPR) - $430 mil – St Francisville Bridge (NPR) - $200 mil – RT 52, New Jerse
Slide 21: HCD Business Outlook
HCD Business Outlook Projects of Interest $100 mil - $500 mil range: – Washington Bypass, NC (SE) –$170 mil – DART LRT (TX) –$300 mil – I-64, St Louis (NPR) - $400 mil – NYDOT Tappen Zee Bridge Deck Replacement $150mil – NJT Tonnelly Ave to Meadowlands LRT $175mil Several Mega-projects in the pi
Slide 22: Questions?
Questions ? US 75 – S2, Dallas TX