Engineering and construction company,
Jacobs Engineering Group Inc.
) 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
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
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
Jacobs currently carries a Zacks Rank #3 (Hold). Other stocks
worth a watch in the construction industry include
Michael Baker Corporation
Foster Wheeler AG
). While Michael Baker Corp. carries a Zacks Rank #1 (Strong
Buy), Foster Wheeler and VSE Corp. carry a Zacks Rank #2
BAKER (MICHAEL) (BKR): Free Stock Analysis
FOSTER WHELR AG (FWLT): Free Stock Analysis
JACOBS ENGIN GR (JEC): Free Stock Analysis
VSE CORP (VSEC): Free Stock Analysis Report
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