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3/25/22, 9:42 AM
<br />Table of Contents
<br />road -20210930
<br />Climate change and related laws and regulations could adversely affect us.
<br />The potential impact of climate change on our operations and our customers remains uncertain. The primary risk that climate change
<br />poses to our business is the potential for increases in the volume, frequency and intensity of rainfall and tropical storms, which would
<br />impair our ability to perform our construction projects. Climate change could also lead to disruptions in our supply chain, thereby
<br />impairing our production capabilities, or the distribution of our products due to major storm events or prolonged adverse conditions,
<br />changing temperature levels or flooding from sea level changes, especially in our coastal markets. These changes could be severe and
<br />could negatively impact demand for our products and services. In addition, governmental initiatives to address climate change could, if
<br />adopted, restrict our operations, require us to make capital expenditures to comply with these initiatives, increase our costs, impact our
<br />ability to compete or negatively impact efforts to obtain permits, licenses and other approvals for existing and new facilities. Our
<br />inability to timely respond to the risks posed by climate change and the costs of compliance with climate change laws and regulations
<br />could have a material adverse impact on us.
<br />Our operations are subject to special hazards that may cause personal injury or property damage, subjecting us to liabilities and
<br />possible losses that may not be covered by insurance.
<br />Operating hazards inherent in our business, some of which may be outside of our control, can cause personal injury and loss of life,
<br />damage to or destruction of property, and environmental damage. We maintain insurance coverage in amounts and against risks that we
<br />believe are consistent with industry practice, but this insurance may be inadequate or unavailable to cover all losses or liabilities we
<br />may incur in our operations. Our insurance policies are subject to varying levels of deductibles. Losses up to our deductible amounts
<br />are accrued based on our estimates of the ultimate liability for claims incurred and an estimate of claims incurred but not reported.
<br />However, liabilities subject to insurance are difficult to estimate due to unknown factors, including the severity of an injury, the
<br />determination of our liability in proportion to other parties, the number of unreported incidents and the effectiveness of our safety
<br />programs. If we experience insurance claims or costs above our estimates, we may be required to use working capital to satisfy these
<br />claims rather than for maintaining or expanding our operations.
<br />Mandatory CO VID-19 vaccination of employees could impact our workforce and have a material adverse effect on our business
<br />and results of operations.
<br />On November 5, 2021, OSHA published an emergency temporary standard mandating that all employers with at least 100 employees
<br />require all of their employees to be fully vaccinated on or before January 4, 2022 or tested weekly for COVID-19 (the "ETS'). As a
<br />company with more than 100 employees, we are subject to the ETS. At this time, it is not possible to predict with certainty whether the
<br />ETS will remain in effect or be invalidated by the courts, and we cannot predict the exact impact that the ETS will have on us or on our
<br />workforce. If the ETS takes effect, the ETS may result in employee attrition, which could materially adversely affect future revenues
<br />and costs and could have a material adverse effect on our business and results of operations.
<br />Our failure to comply with immigration laws could result in significant liabilities, harm our reputation with our customers and
<br />disrupt our operations.
<br />Although we take steps to verify the employment eligibility status of all our employees, some of our employees may, without our
<br />knowledge, be unauthorized workers. Unauthorized workers are subject to deportation and may subject us to fines or penalties and, if
<br />any of our workers are found to be unauthorized, we could experience adverse publicity that could make it more difficult to hire and
<br />retain qualified employees. Termination of a significant number of unauthorized employees may disrupt our operations, cause
<br />temporary increases in our labor costs as we train new employees and result in additional adverse publicity. We could also become
<br />subject to fines, penalties and other costs related to claims that we did not fully comply with all recordkeeping obligations of federal
<br />and state immigration laws. If we fail to comply with these laws, our operations may be disrupted, and we may be subject to fines or, in
<br />extreme cases, criminal sanctions. In addition, many of our customer contracts specifically require compliance with immigration laws,
<br />and, in some cases, our customers audit compliance with these laws. Further, several of our customers require that we ensure that our
<br />subcontractors comply with these laws with respect to the workers that perform services for them. A failure to comply with these laws
<br />or to ensure compliance by our subcontractors could damage our reputation and may cause our customers to cancel contracts with us or
<br />to not award future business to us. These factors could adversely affect our results of operations and financial position.
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<br />https://www.sec.gov/Archives/edgar/data/0001 718227/000171822721000107/road-20210930.htm 341144
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