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A tunnel award can add future work to a contractor’s backlog, but its announced value does not become revenue at once. Revenue is generally recognized as the contractor performs the work, with timing shaped by the project’s phase, progress, cost estimates, and contract changes. To understand what an award means, distinguish the award announcement, the company’s backlog rules, work performed, revenue recognized, and profit earned.
What a tunnel award changes—and what it does not
An award is evidence that a contractor has secured work, subject to the contract’s terms and any remaining conditions. Under the contractor’s reporting policy, it may increase backlog: the value of awarded work that remains to be performed. Backlog is not the same as revenue already earned, cash collected, or guaranteed profit.
Contractors set their own criteria for when work qualifies as backlog. Tutor Perini says it includes projects when awarded, or when it has definitive written notice and no major uncertainty that the work will proceed. In some cases, it may include work before formal contract execution or a notice to proceed if major uncertainties have been resolved. MYR Group, by contrast, says a customer’s intention to award fixed-price work is not enough: it requires an actual award and a contract for specific scope, terms, and pricing. Read each company’s definition before comparing reported backlog.
Backlog can also differ from the transaction price allocated to remaining performance obligations, as Tutor Perini notes in its filing. These are related disclosure measures, not interchangeable labels.
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- Reference Scale: 1:87, suitable for HO Scale.
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Why the award value does not become revenue immediately
Revenue is recognized as contracted work is performed. A project award may cover several years, and the amount recognized in any period depends on progress and the company’s accounting method—not simply the date or value of the announcement.
Design and construction can contribute at different rates
Tutor Perini says newer design-build projects may begin with a design phase lasting six to eighteen months. During that initial phase, the company says revenue and earnings are smaller; the following multi-year construction phase generates substantially larger revenue and earnings. That is a company disclosure about its projects, not a universal schedule for tunnel contracts.
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Progress and cost estimates affect recognition
MYR Group describes a cost-to-cost approach: costs incurred to date are compared with estimated total costs, and the resulting percentage of completion is applied to estimated revenue. Changes in performance, conditions, settlements, contract value, or estimated costs to complete can change recognized revenue and profit. The filing’s description is specific to MYR Group; check the accounting policy and estimates disclosed by the contractor being assessed.
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Tutor Perini reported a $1.18 billion Manhattan Tunnel project award in New York in 2025. For context, the company reported $20.56 billion in total backlog at December 31, 2025; $7.43 billion in new awards and contract adjustments during 2025; and $5.54 billion in revenue recognized during 2025. These rounded figures describe Tutor Perini and its reporting periods, not the construction industry as a whole. The award amount should not be treated as revenue recognized in the award year.
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The company estimated that approximately $6 billion—about 29% of its backlog at December 31, 2025—would be recognized as revenue in 2026. Tutor Perini says its Civil backlog typically converts to revenue over three to five years, while some large projects last longer. That segment-level range is a useful indication of timing, not a promise about any individual tunnel project or another contractor’s work.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to assess an award announcement or compare contractors
A headline award value is only one part of the picture. Use the company’s filing and announcement to check the following:
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- What qualifies as an award: Does the company count a notice of intent, or require an executed contract? Check whether funding, options, a notice to proceed, or protest conditions affect the status.
- What the value includes: Determine whether the figure is the base award, total contract value, a contractor’s share of a joint venture, options, or future phases.
- How backlog changes over time: Review beginning backlog, awards and contract adjustments, revenue recognized, other changes, and ending backlog. Tutor Perini provides a segment-level reconciliation in its filing.
- Where the project is in its schedule: Check the design stage, notice to proceed, ramp-up, expected conversion timing, and construction duration.
- How revenue and profit estimates may change: Read the revenue recognition policy and disclosures about progress measures, cost estimates, claims, change orders, loss contracts, or revisions.
- What could delay or reduce the work: Consider funding, owner decisions, schedule delays, scope changes, and whether the company says backlog is cancellable or subject to conditions.
These checks help distinguish an announced award from work the company has actually included in backlog, and both from revenue recognized as the project advances.
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