Question-and-Answer Session
Operator
(Operator instructions) And the first question comes from the line of Richard Paget with Morgan Joseph. Please proceed.
Richard Paget – Morgan Joseph
Good afternoon, guys.
Ken Burk
Hi, Richard.
Richard Paget – Morgan Joseph
I wondered if you could give us an update about the bid market, if you’ve seen any changes or is it still the case that just given the large project focus that you guys have, you are not seeing as many bids at the table, has it gotten more competitive at all over the last quarter or so? And then with you guys starting to book more contracts, do you think that is particularly in this quarter just reflective of kind of the inherent lumpiness of construction awards or is the actual large project market starting to heat up more?
Ron Tutor
I would say it started with a large project market, it’s definitely heating up. That’s put undated with major project opportunities. We typically do not even follow or look at the civil work projects under a $100 million unless there is something specific and complicated about – if it gets our interest. We think at least what I can see this as Ron Tutor over the next 12 to 18 months. Our plate will be full of opportunities to compete and bid upon. So, we really believe that we can continue this momentum in civil work and continue to build that sector up to where it becomes significant fees [ph] of Tutor Perini moving forward.
Secondarily, going back to your question on how we see the competition, I will answer it the same way I did a year ago and six months ago. There are no new large entrees into the major civil work business. If I major, I am talking about those projects in a $175 million, $200 million and up. Be it 400, 500, there are only, to be every benefit of that maybe 10 to 12 in the United States both financially and physically qualify to bid those.
Our Caldecott Tunnel project that we were low bid out of four bidders contained us and three other joint ventures. That’s typical of what we bid against us and three other bidders, four bidders, two bidders, three bidders. There are no new entrees [ph]. It is the same people we were bidding against the year ago, and in most cases five year ago. It is unlike the building business which requires very limited capital and mostly subcontracted work performance. Our civil sector operates on requiring a large amount of capital as well as the equipment and the expertise to self perform the work is separated. That’s why our margins are significantly higher. I hope I answered it.
- To read the full transcript on Seeking Alpha, click here »
