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3/25/22, 9:42 AM
<br />Table of Contents
<br />road -20210930
<br />We depend on our information technology systems andprocesses, which are subject to cybersecurity and data leakage risks.
<br />We depend on information technology systems and infrastructure that could be damaged or interrupted by a variety of factors. Any
<br />significant breach, breakdown, destruction or interruption of these systems has the potential to negatively affect our operations. We
<br />could experience a business interruption, theft of information or reputational damage as a result of a cyber attack, such as the
<br />infiltration of a data center, or data leakage of confidential information either intemally or through our third -party providers. Although
<br />we have invested in the protection of our data and information technology to reduce these risks and periodically test the security of our
<br />information systems network, there can be no assurance that our efforts will prevent breakdowns or breaches in our systems that could
<br />have a material adverse effect on our financial condition, results of operations and liquidity. Similarly, our suppliers rely extensively on
<br />computer systems to process transactions and manage their businesses and, thus, are also at risk from, and may be impacted by,
<br />cybersecurity attacks. An interruption in the business operations of our suppliers and other third parties with which we do business
<br />resulting from a cybersecurity attack could indirectly impact our business operations.
<br />Design -build contracts subject its to the risk of design errors and omissions.
<br />Design -build contracts are used as a method of project delivery that provides the owner with a single point of responsibility for both
<br />design and construction. We generally subcontract design responsibility to architectural and engineering firms. However, in the event
<br />of a design error or omission that causes damages, there is a risk that the subcontractor and/or its errors and omissions insurance would
<br />not be able to absorb the full amount of the liability incurred. In this case, we may be responsible for the remaining liability, which
<br />could damage our reputation and adversely affect our financial position, results of operations, cash flows and liquidity.
<br />From time to time, we enter into joint venture contracts to perform certain projects, and these arrangements expose us to certain
<br />risks and uncertainties that are outside of our control.
<br />From time to time, we perform construction projects as part of a joint venture, under which our relationship to the other joint venture
<br />partners is governed by a written contract. Participation in these arrangements exposes us to risks and uncertainties, including the risk
<br />that our partners may fail to perform under the contracts, which could subject us to contractual liability. In addition, if our partners are
<br />not able or willing to provide their share of capital investment to fund the operations of the venture or the joint venture arrangement is
<br />terminated, there could be unanticipated costs to complete the project, or we could be liable for financial penalties or liquidated
<br />damages. In the event that we are not the controlling partner in the joint venture, we may have limited control over the decisions made
<br />with respect to the project. The occurrence of any of the foregoing could have a material adverse effect on our financial position,
<br />results of operations, cash flows and liquidity.
<br />Our continued success requires us to hire, train and retain qualified personnel and subcontractors in a competitive industry.
<br />The success of our business depends on our ability to attract, train and retain qualified, reliable personnel, including, but not limited to,
<br />our executive officers and key management personnel. In addition, we rely on engineers, project management personnel, and other
<br />employees and qualified subcontractors who possess the necessary and required experience and expertise to perform their respective
<br />services at a reasonable and competitive rate. Competition for these and other experienced personnel is intense, and it may be difficult
<br />to attract and retain qualified individuals with the requisite expertise and within the time frame demanded by our customers. In certain
<br />geographic areas, for example, we may not be able to satisfy the demand for our services because of our inability to successfully hire,
<br />train and retain qualified personnel. Also, it could be difficult to replace personnel who hold credentials that may be required to
<br />perform certain government projects and/or who have significant government contract experience.
<br />As some of our executives and other key personnel approach retirement age, we must provide for smooth transitions, which may
<br />require that we devote time and resources to identify and integrate new personnel into vacant leadership roles and other key positions.
<br />If we are unable to attract and retain a sufficient number of skilled personnel or effectively implement appropriate succession plans, our
<br />ability to pursue projects and our strategic plan may be adversely affected, the costs of executing both our existing and future projects
<br />may increase, and our financial performance may decline.
<br />In addition, the cost of providing our services, including the extent to which we utilize our workforce, affects our profitability. For
<br />example, the uncertainty of contract award timing can present difficulties in matching our workforce size with our contracts. If an
<br />expected contract award is delayed or not received, we could incur costs resulting from excess staff or redundancy of facilities that
<br />could have a material adverse impact on our business, financial condition and results of operations.
<br />Our results of operations can be adversely affected by labor shortages, turnover and labor cost increases.
<br />Labor is a primary component of operating our business. A number of factors may adversely affect the labor force available to us or
<br />increase labor costs from time to time, including high employment levels, federal unemployment subsidies, including unemployment
<br />benefits offered in response to the COVID-19 pandemic, and other government regulations. Although we have not experienced any
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