Economic Cyclicality Risk: Granite Construction's business is highly dependent on public and private infrastructure spending, which is cyclical and can be significantly impacted by economic downturns, changes in government funding priorities, or private sector investment reductions.

Material Price Volatility Risk: Fluctuations in the cost of key construction materials such as asphalt, cement, steel, and fuel, often influenced by global supply and demand or geopolitical events, can erode project profitability if not adequately managed or passed through to clients.

Labor Availability and Cost Risk: The construction industry faces persistent challenges with skilled labor shortages, and rising wages, benefits, and training costs can increase operational expenses and delay project completion, impacting overall financial performance.