Three large, publicly held contractors—SNC-Lavalin Group Inc., Fluor Corp. and Granite Construction Inc.—are exiting fixed-price contracting as a business-growth strategy in the wake of megaproject risk imbalance, the companies said in disclosing their second quarter results.
After announcing a $1.6-billion quarter loss on Aug. 1 compared to a $62.7-million profit a year earlier, Canada design-builder SNC-Lavalin said it will not bid on future “lump-sum turnkey” projects and will reorganize its infrastructure, oil-and-gas and mining units into separate businesses. The firm also has exited from at least four large Canada infrastructure project bids, for which the firm or its team shortlisted, including two in Vancouver.