Question-and-Answer Session
Operator
(Operator instructions) And your first question is from Bob Labick from CJS Securities.
Bob Labick – CJS Securities
Good morning. Congratulations on a strong quarter.
Bill Dorey
Thank you, Bob.
Bob Labick – CJS Securities
Okay. So I wanted to start with Granite West construction. Obviously, I think a lot of the strength versus our expectations came in the construction portion of Granite West with robust sales growth. Could you talk about the key drivers to that growth, particularly, in light of the aggregate volumes that you discussed down in the region? So what were the drivers of the growth in construction West?
Jim Roberts
Bob, this is Jim Roberts, I will be happy to answer that. Obviously, we're all ecstatic relative to the results of the third quarter in the construction business in the West. Really, the key is the fact that our teams out there are literally beating the estimate. They have increased their forecast because of the fact they have lowered their cost basis and the work that we've gotten up through the third quarter has been work with very good margin on it and when they beat those expectations, they certainly increase those margins. So it certainly comes down to the field hands and our teams out there just outperforming what are expectations were.
Bob Labick – CJS Securities
Got it. And then one of the things we were looking for starting in this quarter or I guess on a go-forward basis. You've obviously discussed the competitive environment on bids as being higher than a year ago. What – how should we expect gross margins to trend on a go-forward basis, particularly, with this very strong gross margin in the quarter?
Jim Roberts
Bob, that's a reasonable question. One of the things that our teams are doing and I think that Bill alluded to it in the opening discussion, was the fact that our teams are bidding just an enormous amount of work right now. And that gives us an opportunity to pick and choose the type of work that we are going to be competitive on and there are a lot of projects that do not have a significant level of competition and other projects that do. I think the key for us to try to keep our margins at a very reasonable level is to focus on the projects that we can vertically integrate with our skilled workforce and our materials, and find opportunities where we can have margins that will get close to where we're at to-date. It's definitely more competitive and it's going to be more difficult.
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