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3/25/22, 9:42 AM Table of Contents road -20210930 Our audit procedures related to revenue recognized under uncompleted long-term construction contracts included the following, among others: We obtained an understanding of the relevant controls related to revenue recognized under long-term construction contracts and tested such controls for design and operating effectiveness, including management's controls over the estimation of total contract costs to be incurred in order to complete uncompleted contracts. We selected a sample of long-term construction contracts and we performed the following: • Compared the current year costs incurred to prior year estimates of costs to complete, which involved comparing projects completed during the fiscal year with the estimates made as of the previous balance sheet date to evaluate management's ability to accurately estimate costs to complete on its long-term construction contracts. • Analyzed the estimated gross margins for uncompleted contracts by comparing the Company's three-year historical average gross margin stratified by customer type to the estimated margin for uncompleted contracts at fiscal year end. • Inquired with individuals outside of the accounting function, including project management teams and individuals responsible for oversight and performance of the contracts, to obtain corroborating evidence regarding estimates of costs to complete and estimated gross margins on uncompleted contracts. Compared the costs incurred during the month immediately subsequent to the fiscal year end to costs and estimated earnings to date on uncompleted contracts at September 30, 2021, and on a sample basis, inquired with individuals responsible for oversight and performance of the contracts in order to obtain corroborating evidence regarding estimated earnings on uncompleted contracts. Fair Value Estimation of Afineral Reserves Acquired in Business Combinations Critical Audit Matter Description As described in Note 4 to the consolidated financial statements, during the fiscal year ended September 30, 2021, the Company acquired a crushed stone and aggregates facility located near Goldston, North Carolina and a HMA contracting company located in Cullman, Alabama that includes four aggregate facilities, resulting in a total provisional fair value of acquired mineral reserves of $56,718,000. The Company accounted for these transactions as business acquisitions with the identifiable assets acquired and liabilities assumed recorded at their provisional estimated fair values. As described in Note 2 to the consolidated financial statements, the Company estimated the provisional fair values of acquired mineral reserves using an excess earnings approach, which required management to make significant estimates and assumptions related to forecasted sales prices, forecasted sales volumes, forecasted profit margins and the selection of a discount rate. We have identified the provisional fair value of mineral reserves acquired in business combinations as a critical audit matter because of the significant estimates and assumptions management used in estimating the provisional fair values. Auditing management's key estimates and assumptions involved a high degree of auditor judgment and increased audit effort, including the use of our valuation specialists. Our audit procedures related to the provisional fair value of mineral reserves acquired in business combinations included the following, among others: We obtained an understanding of the relevant controls related to selecting key assumptions and inputs inherent in the fair value estimation valuation models and tested such controls for design and operating effectiveness. We involved valuation professionals with specialized skills and knowledge, who assisted in the following: • Evaluating the elements of the discount rate assumption used by management by comparing them against publicly available market data • Evaluating the forecasted sales prices, forecasted sales volumes, forecasted profit margins by comparing management's estimates to market data !s! RSM US LLP We have served as the Company's auditor since 2017. Birmingham, Alabama November 29, 2021 https://www.sec.gov/Archives/edgar/data/0001718227/000171822721000107/road-20210930.htm 76/144