BC Hydro and Valard Construction Finalize EPC Contract for Northwest Transmission Line

EDMONTON, Alberta, Sept. 2, 2011 /PRNewswire/ -- Valard Construction, a Quanta Services, Inc. (NYSE: PWR) company, today announced that the team of Valard and Burns & McDonnell has finalized its contract with BC Hydro for the engineering, procurement and construction (EPC) of the Northwest Transmission Line (NTL).  Under the terms of the contract, Valard will deliver comprehensive construction solutions for the approximately 213-mile (344-kilometer), 287-kilovolt transmission line between Skeena Substation and a new substation to be built near Bob Quinn Lake in British Columbia.  

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"We are pleased to have selected two high-quality contractors in the team of Valard Construction and Burns & McDonnell to build and design the Northwest Transmission Line," said Dave Cobb, President and CEO of BC Hydro.  "Both companies are leaders in the industry and these companies will provide the highest overall value to our ratepayers at the most cost-effective price."

The full scope of services to be provided by Valard and Burns & McDonnell includes design, engineering, project management, foundation construction, tower assembly and installation, conductor stringing, installation of fiber and associated equipment and line testing and commissioning. Under the terms of the contract, Valard will construct the line and related structures for an estimated $170 million.  Preliminary activities, including collaboration with the various First Nations and local organizations, are underway with construction expected to be complete in the fourth quarter of 2013. In general, Burns & McDonnell will provide engineering and procurement services.

"Our Valard operating unit brings a strong commitment to, as well as experience in, working with the local First Nations and communities. This expertise, combined with its strong Canadian presence, is expected to create regional employment opportunities and support the area's economic development initiatives," said Jim O'Neil, president and chief executive officer of Quanta Services.  "We are proud to bring a comprehensive solution to BC Hydro to help create a clean, reliable interconnection and support future industrial developments."

About BC Hydro

Fifty years ago, British Columbians turned to BC Hydro to build the clean electricity system they count on to power B.C.'s economy, create jobs in every region, and keep the lights on. Now, BC Hydro is building again for the next 50 years. B.C. continues to grow and so has the need for more electricity. That's why BC Hydro is building and renewing electricity infrastructure, and encouraging conservation to meet today's needs and those of future generations. In 2011, BC Hydro is celebrating 50 years of providing power for British Columbians and inviting them to help prepare for the next 50 years.

About Valard Construction and Quanta Services

Based in Edmonton, Alberta, Valard Construction is a full-service engineer, procure and construct (EPC) contractor, capable of providing its clients with turnkey solutions for power system requirements. Valard was founded in 1978 and is comprised of a workforce of 700 trades-related people, 500 pieces of dedicated utility equipment and an experienced management team.  Quanta Services is a leading specialized contracting services company, delivering infrastructure solutions for the electric power, natural gas and pipeline and telecommunication industries. The company's comprehensive services include designing, installing, repairing and maintaining network infrastructure nationwide. With operations throughout North America, Quanta has the manpower, resources and expertise to complete projects that are local, regional, national or international in scope.  

About Burns & McDonnell

Burns & McDonnell provides engineering, architecture, construction, environmental and consulting services to clients throughout North America and abroad. More than 3,000 engineers, architects, scientists, planners, estimators, economists, technicians and other professionals work in more than 30 regional, national and international offices. Founded in 1898, Burns & McDonnell is 100 percent employee-owned and is currently ranked Number 20 on the Engineering News-Record Top 500 Design Firms. For more information about Burns & McDonnell, visit its website at www.burnsmcd.com.

Forward-Looking Statements

This press release (and any oral statements regarding the subject matter of this press release) contains forward-looking statements intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include, but are not limited to: any expected value of Valard's contract to provide services to BC Hydro, the scope, services, term and results of the project awarded under the contract, the expected work to be performed by third parties, including Burns & McDonnell and the various benefits of the BC Hydro project, as well as statements reflecting expectations, intentions, assumptions or beliefs about future events and other statements that do not relate strictly to historical or current facts.  Although Quanta's management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.  These statements can be affected by inaccurate assumptions and by a variety of risks and uncertainties that are difficult to predict or beyond our control, including, among others, the successful performance and timely completion of services under the contract and the project awarded thereunder; Valard's reliance on Burns & McDonell and other third parties for performance of a portion of the work under the contract with BC Hydro and their potential failure to perform; failure to realize the anticipated value of the contract; the potential for incurrence of damages or other claims for schedule delays or performance shortfalls, including as a result of warranty claims following completion; the failure of Valard's and Burns & McDonnell's subcontractors to perform their obligations, including warranty obligations, under their subcontracts; adverse changes in economic conditions and trends in relevant markets; future growth in the electric utility and renewable energy industries; delays, reductions in scope or cancellations of the project awarded, including as a result of weather, regulatory or environmental processes; dependence on fixed-price contracts and the potential to incur losses with respect to these contracts; the inability of customers to pay for services; cancellation and termination provisions present in the contract; and other factors affecting the business of Valard and Quanta generally, including risks detailed in Quanta's Annual Report on Form 10-K for the year ended December 31, 2010, Quanta's Quarterly Reports on Form 10-Q for each quarter ended in fiscal year 2011 and any other documents of Quanta filed with the Securities and Exchange Commission (SEC).  Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Quanta and Valard do not undertake and expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Quanta and Valard further expressly disclaim any written or oral statements made regarding the subject matter of this press release by any third party.  For a discussion of these risks, uncertainties and assumptions, investors are urged to refer to Quanta's documents filed with the SEC that are available through Quanta's web site at www.quantaservices.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at www.sec.gov.

SOURCE Quanta Services