1050915--3/2/2009--QUANTA_SERVICES

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{cost, contract, operation}

{acquisition, growth, future}

{cost, operation, labor}

{cost, regulation, environmental}

{customer, product, revenue}

{tax, income, asset}

{condition, economic, financial}

{personnel, key, retain}

{financial, litigation, operation}

{capital, credit, financial}

{loss, insurance, financial}

{regulation, government, change}

{system, service, information}

{product, market, service}

{operation, international, foreign}

{competitive, industry, competition}

{control, financial, internal}

The recent economic downturn and the financial and credit crisis may adversely impact our customers future spending as well as payment for our services and, as a result, our operations and growth. An economic downturn in any of the industries we serve may lead to less demand for our services. Project delays or cancellations may result in additional costs to us, reductions in revenues or the payment of liquidated damages. We may be unsuccessful at generating internal growth. Our use of fixed price contracts could adversely affect our business. Our use of percentage-of-completion accounting could result in a reduction or elimination of previously reported profits. Our industry is highly competitive. Legislative actions and incentives relating to electric power and renewable energy may fail to result in increased demand for our services. Many of our contracts may be canceled on short notice or may not be renewed upon completion or expiration, and we may be unsuccessful in replacing our contracts in such events. Our business is labor intensive, and we may be unable to attract and retain qualified employees. Backlog may not be realized or may not result in profits. Our financial results are based upon estimates and assumptions that may differ from actual results. Factors beyond our control may affect our ability to successfully execute our acquisition strategy, which may have an adverse impact on our growth strategy. We may be unsuccessful at integrating companies that either we have acquired or that we may acquire in the future. Our results of operations could be adversely affected as a result of goodwill impairments. Our profitability and financial operations may be negatively affected by changes in, or interpretations of, existing state or federal telecommunications regulations or new regulations that could adversely affect our Dark Fiber segment. Our dark fiber licensing business is capital intensive and requires a substantial investment before returns can be realized. We extend credit to customers for purchases of our services, and in the past we have had, and in the future we may have, difficulty collecting receivables from major customers that have filed for bankruptcy or are otherwise experiencing financial difficulties. We are self-insured against potential liabilities. Our unionized workforce and related obligations could adversely affect our operations. We may incur liabilities or suffer negative financial or reputational impacts relating to occupational health and safety matters. Our dependence on suppliers, subcontractors and equipment manufacturers could expose us to the risk of loss in our operations. Our business growth could outpace the capability of our corporate management infrastructure. During the ordinary course of our business, we may become subject to lawsuits or indemnity claims, which could materially and adversely affect our business and results of operations. We may not realize all of the anticipated synergies and other benefits from acquiring InfraSource. A portion of our business depends on our ability to provide surety bonds. We may be unable to compete for or work on certain projects if we are not able to obtain the necessary surety bonds. The departure of key personnel could disrupt our business. We are in the process of implementing an information technology ( IT ) solution, which could temporarily disrupt day-to-day operations at certain operating units. We may not be successful in continuing to meet the requirements of the Sarbanes-Oxley Act of 2002. Our failure to comply with environmental laws could result in significant liabilities. Risks associated with operating in international markets could restrict our ability to expand globally and harm our business and prospects. Opportunities within the government arena could subject us to increased governmental regulation and costs. The industries we serve are subject to rapid technological and structural changes that could reduce the demand for the services we provide. We may not have access in the future to sufficient funding to finance desired growth and operations.

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1050915--3/2/2009--QUANTA_SERVICES_INC