The Duratec Ltd (ASX: DUR) share price is on the rise after the company announced it has executed a letter of intent for a $63 million contract.
If successful, the engineering, construction, and remediation company will begin preliminary works to refurbish the façade of a high-rise in Perth's CBD. Specifics as to which high-rise are yet to be made public.
The Duratec share price is currently sitting at 52 cents, up more than 10% from yesterday's closing price of 47 cents.
More about the $63 million contract
Up for grabs is the contract to re-clad and enhance the façade of a significant Perth high-rise building.
Duratec is in final contract negotiations with the owners of the building, Perron Investments and APF Management (acquired by Frasers Logistics & Commercial Asset Management).
Finalising of the contract is now conditional upon the issuing of a Certified Building Permit and final negotiations of terms and conditions.
Once granted the contract, Duratec will begin the construction phase of the refurbishment. The works are expected to take 165 weeks to complete.
Management commentary
Managing Director of Duratec Phil Harcout congratulated Duratec's Building and Façade Team on its professionality throughout negotiations.
This is a significant announcement for Duratec as we continue to execute on our national specialist façade strategy.
This is an excellent example of the success of Duratec's ECI business model meeting the needs and expectations of clients via transparency, consultation and provision of budget and programme certainty. We look forward to delivery of this project safely, on-time and to an outstanding standard of finish.
He added:
To date Duratec has successfully completed replacement of combustible cladding on buildings in NSW, Victoria and WA and we see this market sector is undergoing considerable growth, of which, we are well placed to capture a significant market share.
Duratec share price snapshot
Duratec has lost 13% of its value since it was first listed on the ASX in November 2020. It's currently down 19% year to date.
After today's rise of 10%, Duratec's share price is 52 cents apiece. It has a market capitalisation of $112.79 million with approximately 237 million shares outstanding.
