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A tunnel contract award can add future work to a contractor’s backlog, but it does not turn the full announced value into revenue immediately. Revenue is recognized as the contractor performs the work; the timing and amount depend on the contract, project phase, progress, costs, and revised estimates.
What an award adds to backlog—and what it does not
Backlog is generally a company-defined measure of awarded work that remains to be performed. Tutor Perini says it includes projects when awarded, or when the company has definitive written notice and no major uncertainty that the work will proceed. Under its policy, some work can enter backlog before formal contract execution or a notice to proceed if major uncertainties have been resolved. Tutor Perini’s 2025 Form 10-K describes backlog as the value of work remaining on awarded projects.
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Companies do not all use the same threshold. MYR Group says an intention to award fixed-price work is not enough: it excludes the work unless there is an actual award and a contract specifying scope, terms, and price. That means two contractors may treat similar announcements differently in their backlog figures. MYR Group’s 2025 Form 10-K explains its policy.
An award announcement, a backlog addition, the start of work, revenue recognized, and profit earned are separate events. Backlog is an outlook indicator, not a guarantee of revenue or profit. It is also not necessarily equivalent to remaining performance obligations: Tutor Perini says the measures may differ.
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How a tunnel award becomes revenue
Revenue is recognized as contracted work is performed, rather than all at once when the award is announced. A project may first pass through design and mobilization, then move into construction. The larger revenue contribution can therefore arrive later than the award date.
Design-build projects may ramp up gradually
Tutor Perini reports that newer design-build projects can have an initial design phase lasting six to eighteen months. During that phase, revenue and earnings may be smaller; the subsequent multi-year construction phase can generate substantially more. This is the company’s description of its projects, not a guaranteed timetable for every tunnel contract.
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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. Under that method, revenue and profit depend in part on estimates of remaining costs. Changes in performance, project conditions, settlements, contract value, or cost-to-complete estimates can change the amount recognized.
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What Tutor Perini’s 2025 figures show
Tutor Perini reported a $1.18 billion Manhattan Tunnel project award in New York in 2025. For the company as a whole, it reported $20.56 billion in backlog at December 31, 2025, $7.43 billion in new awards and contract adjustments during 2025, and $5.54 billion in revenue recognized during that year. These figures are rounded from its 2025 Form 10-K and describe Tutor Perini—not the construction industry generally.
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The company estimated that approximately $6 billion, or approximately 29% of its backlog at December 31, 2025, would be recognized as revenue in 2026. Tutor Perini says Civil backlog typically converts to revenue over three to five years, while some large projects last longer. That segment-level typical range is not a promise about the Manhattan Tunnel award or any individual project.
The figures illustrate why an award’s announced value, a contractor’s year-end backlog, and revenue recognized in a given year are different measures. The $1.18 billion award should not be treated as $1.18 billion of revenue in 2025.
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How to compare tunnel awards and contractor backlog
Before comparing an award headline or backlog total across contractors, check what each figure includes and how each issuer defines it.
- Qualification for backlog: Does the company require an executed contract, or can definitive written notice suffice? Check conditions such as funding, options, a notice to proceed, or protests.
- Scope and stated value: Determine whether the number is a base award, total contract value, the contractor’s share of a joint venture, an option, or a value that includes future phases.
- Backlog roll-forward: Compare beginning backlog with new awards and adjustments, revenue recognized, and other removals or changes. Tutor Perini provides a reconciliation for its reporting segments.
- Timing and phase: Look for design duration, notice to proceed, ramp-up, and expected construction schedule.
- Revenue method and estimation exposure: Read the revenue-recognition disclosures for the progress measure, cost estimates, claims, change orders, and any loss contracts or revisions.
- Execution uncertainty: Consider owner decisions, funding, delays, scope changes, and any stated cancellation rights or other conditions.
These checks help distinguish a large headline number from work that is contractually secured, underway, and being recognized as revenue.
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