While undergone losses over recent years, 2024 has started on a sweet note for the Tutor Perini Corporation. The firm's Gulfport, Mississippi-based subsidiary, Roy Aderson, has won an $81 million contract to construct a new residence hall of the Mississippi State University in Starkville, North of Jackson.

Tes upcoming project is a five-story building covering 155,000 square feet and will feature 400 beds for students alongside a dining hall, various day spaces for student activities, offices, and a storm shelter. The construction is slated to begin in February, to complete the project by the spring of the following year.

This isn’t the first project that Tutor Perini has landed with Mississippi State University. It has previously worked on several construction projects within the university. These include constructing residence halls and expanding and renovating the Davis Wade Stadium. 

Bob Fullington, the president of Roy Anderson, expressed enthusiasm by stating, “Roy Anderson Corp. has been supporting Mississippi State University infrastructure needs through a relationship that has spanned over 30 years.”

Roy Anderson Corp. has a rich history since its founding in 1955 and became a part of Tutor Perini in 2011 following a purchase agreement worth approximately $65 million in cash, with additional payments based on the company’s performance over the following three years.

So, why is one of the biggest and most reputable construction companies, like Tutor Perini, facing such financial jeopardy?

As Contractor News has been reporting several times during the last year, although projects are being awarded, due to budgetary concerts, they are not taking off. Inflation and rising raw material prices make it difficult for contractors to bid at a lower price. Many projects across the country have overshot its initially sanctioned budget. 

However, the American economy has been struggling since the pandemic, and Chief Executive of Tutor Perini, Ron Tutor, explained that even in instances when the company was the lowest bidder, they were still over budget as per the client’s standard. This made the company lose $10 million worth of projects.

The company’s project backlog, which indicates future revenue potential from projects not yet started, had been shrinking, dropping from $8.2 billion at the end of 2021 to $7.9 billion a year later. However, with recent contract wins, including the Mississippi State residence hall, the backlog has increased to $10.6 billion as of September 30, showing signs of recovery and growth.

The company’s share price has begun seeing improvements, doubling from a low in April to $9.0 on January 10, although it still remains below its peak of $20 in March 2021. With these developments, Tutor Perini appears to be on a path to regain its footing in the construction industry, bolstered by strategic wins and a solidifying relationship with Mississippi State University.