Granite Construction Inc., a contractor and producer of construction materials, said Friday it received a $121 million deal from a Texas transit authority to start work on parts of the state's light rail transit system.



Granite, and its venture partners, received the notice from the Metropolitan Transit Authority of Harris County to begin expansion of Houston's existing light rail transit system.



Earlier this year, the joint venture, Houston Rapid Transit, received a total of $1.28 billion. Team members include: Granite, Kiewit Texas Construction L.P. and Stacy and Witbeck, Inc.



Granite expects to book its share of $41 million in its backlog in the third quarter.



The HRT team will expand the existing light rail transit system in four new corridors totaling an additional 20 miles of light rail transit. Scope of the work includes 32 stations, storage and inspection facilities, as well as a major renovation to the existing operations center.



Shares of Granite added 83 cents, or 2.5 percent, to $34.65 in afternoon trading.