Sterling Construction subsidiary lands $26M highway revamp in Hawaii

ConDig (14-Aug-18).  A subsidiary of Texas-based civil contractor Sterling Construction Co has bagged a $26 million deal to upgrade the King Kamehameha highway in Pearl City, Hawaii.

Under the project with the Honolulu Authority for Rapid Transportation (HART), Road and Highway Builders LLC will resurface the highway along the path of guideway construction through Pearl City and Aiea. It will also carry out road widening, improvements to intersections, minor utility improvements, traffic signal work, turning loops and curb and gutter work.

The project is slated to start this month, with construction expected to last one year.

Sterling said the King Kamehameha highway is one of the main highways serving suburban and rural O‘ahu. Starting from Nimitz Highway near Pearl Harbor and Hickam Air Force Base in Honolulu, it serves the island’s older western suburbs, turning north across the O‘ahu Central Valley to the North.

“We completed smaller projects focused on milling and paving and safety improvements on the King Kamehameha Highway during 2015 and 2016. We are pleased that our solid execution on those jobs has led to additional, larger opportunities and we are looking forward to working with HART on enhancing this important element of the transportation infrastructure for O‘ahu motorists,” said Joe Cutillo, Sterling’s chief executive officer.

Earlier this month, Woodlands-based Sterling upped its full-year profit and revenue outlook on robust end market demand. It forecast revenues of between $1.030 billion and $1.045 billion this year and net income attributable to Sterling common stockholders of between $24 million and $26.5 million.

The latest figures from Dodge Data & Analytics showed that construction starts jumped up 11% in June to a seasonally adjusted annual rate of $896.3 billion. The increase marked the second double-digit gain in a row, following the 15% hike that was reported for May.

The rise in June follows a 57% surge in nonresidential building, which benefitted from the start of two large manufacturing plant projects and two substantial office building projects.

Residential building rose 4%, while nonbuilding construction (public works and electric utilities) declined 28% in June.

In June, a subsidiary of Sterling Construction Co bagged a $28 million contract to revamp and widen a portion of FM 664 in Ellis County, Texas.