Engineering and construction company, Jacobs Engineering Group Inc. (JEC) recently won two contracts. While the first was awarded by the Seattle Department of Transportation, the other was from the Civil Engineering and Development Department of the Special Administrative Region, Government of Hong Kong.
The Seattle contract deals with the provision of construction management services for the Elliott Bay Seawall Project. Construction value of the phase 1 of the project is estimated to be around $300 million. Per the contract, Jacobs will look after the construction of roughly 3,700 feet of a new seawall infrastructure, replacing the existing one, in an urban waterfront area. Phase 1, expected to start this month, deals with the construction of the central seawall. Jacobs will be responsible for overseeing, inspecting, monitoring, coordination and related documentation of the project.
The involvement in this project gives Jacobs a scope to utilize its expertise in large construction projects. Also, the company may be able to leverage the benefits of the experience in the second phase of the project, which is currently in the planning stage.
The Government of Hong Kong’s contract is related to the Landslip Prevention and Mitigation Program, dealing with landslides occurring on the natural hillside catchments as well as man-made slopes.
The financial value of the contract has been kept confidential. Per the contract, Jacobs will provide detailed studies, design and tender supervision for the natural terrain hillside catchments. Additionally, the company will be providing stability assessment and detailed design in the public sector and stability assessment in the private sector, related to the man-made slopes.
Jacobs’ association with the project dates back to 1995, when the project started. The company has a wide presence in Hong Kong which it expects to grow in the coming quarters.
After missing the Zacks Consensus Estimate for revenues in the past two quarters, we expect that contract wins like this might boost Jacobs’ top line and help improve the company's results.
Jacobs currently carries a Zacks Rank #3 (Hold). Other stocks worth a watch in the construction industry include Michael Baker Corporation (BKR), Foster Wheeler AG (FWLT) and VSE Corp. (VSEC). While Michael Baker Corp. carries a Zacks Rank #1 (Strong Buy), Foster Wheeler and VSE Corp. carry a Zacks Rank #2 (Buy).