ARB Inc., a unit of the West Construction Services segment of Primoris Services Corporation (PRIM), declared a new Master Service Agreement (MSA) worth $80 million from a major Northern California utility customer. Scope of the contract involves maintenance and repair work.

The contract secured by the underground division of ARB, comprises camera inspection that will help in final quality control, non-destructive testing and robotics or 3D measurement. Scope of work also includes repair of sewer mains and laterals to fix damage, as well as preventative measures for all new construction.

The contract work is expected to commence in Oct 2014. The MSA has a three year term with a one year option for a fourth year, estimated at $20 million per year.

On Aug 26, James Construction Group, a unit of Primoris secured two civil contracts worth $30 million. Further Primoris Energy Services acquired Ram-Fab, LLC for less than $10 million last month, in order to enhance fabricating capacity, especially in the Gulf Coast markets.

Primoris witnessed a solid second quarter with strong revenue growth in several end markets, especially in its operations on the Gulf Coast. The company remains optimistic about the second half of the year. In addition, the abundance of shale gas will drive need for new energy and petrochemical infrastructure.

During the next four quarters, Primoris is expected to realize revenues of around 50% of the East Construction Services segment backlog, about 93% of the West Construction Services segment backlog and 40% of the Engineering segment backlog.

Dallas, TX-based Primoris is a specialty contractor and infrastructure company that serves diverse-end markets. The company also provides a wide range of construction, fabrication, maintenance, replacement, water and wastewater as well as engineering services to major public utilities, petrochemical companies, energy companies, municipalities and other customers.

At present, Primoris has a Zacks Rank #3 (Hold).

Some better-ranked players in the same industry include Granite Construction Incorporated (GVA), Sterling Construction Co. Inc. (STRL) and UCP, Inc. (UCP). All these carry a Zacks Rank #2 (Buy).

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