906469--3/2/2006--WASHINGTON_GROUP_INTERNATIONAL

related topics

{cost, contract, operation}

{loss, insurance, financial}

{cost, regulation, environmental}

{cost, operation, labor}

{tax, income, asset}

{investment, property, distribution}

{customer, product, revenue}

{regulation, government, change}

{operation, international, foreign}

{interest, director, officer}

{competitive, industry, competition}

{personnel, key, retain}

{debt, indebtedness, cash}

{stock, price, share}

{provision, law, control}

{condition, economic, financial}

The documents governing our indebtedness restrict our ability and the ability of some of our subsidiaries to engage in some business transactions. We are engaged in highly competitive businesses and must typically bid against competitors to obtain engineering, construction and service contracts. Strikes, work stoppages and other similar events, as well as resulting increases in operating costs, would have a negative impact on our operations and results. Our success depends on attracting and retaining qualified personnel in a competitive environment. Economic downturns and reductions in government funding could have a negative impact on our businesses. Our fixed-price contracts subject us to the risk of increased project costs. The U.S. government can audit and disallow claims for compensation under our government contracts and can terminate those contracts without cause. Our dependence on one or a few customers could adversely affect us. Our backlog is subject to unexpected adjustments and cancellations and is, therefore, an uncertain indicator of our future earnings. Our businesses involve many project-related and contract-related risks. Our dependence on subcontractors and equipment manufacturers could adversely affect us. If we guarantee to a customer the timely completion or performance standards of a project, we could incur additional costs to meet our guarantee obligations. The success of our joint ventures is dependent on the performance of our joint venture partners of their contractual obligations. Our international operations involve special risks. Our international operations may require our employees or subcontractors to travel to high security risk countries, which may result in employee injury, repatriation costs or other unforeseen costs. We could be subject to liabilities as a result of our performance. We could be subject to liability under environmental laws and regulations. Changes in environmental laws, regulations and programs, could reduce demand for our environmental services, which could negatively impact our revenue. Expiration of the Price-Anderson Act s indemnification authority could have adverse consequences on our Power and Energy Environment business units. Actual results could differ from the estimates and assumptions used to prepare our financial statements. Our use of percentage-of-completion accounting could result in a reduction or elimination of previously reported profits. If we have to write off a significant amount of intangible assets, our earnings will be negatively impacted. Our organizational documents, some of our agreements and provisions of Delaware law could inhibit a change in control. Exercise of our outstanding stock options may dilute the ownership interests of our existing stockholders and could adversely affect the market price of our common stock. The significant demands on our cash resources could affect our ability to achieve our business plan. Adequate bonding is necessary for us to successfully win new work awards on some types of contracts. Unavailability of insurance coverage could have a negative impact on our operations and results. We have seen an increase in our claims against project owners for payment and our failure to recover adequately on these and future claims could have a material effect on us. If we experience delays and/or defaults in customer payments, we could suffer liquidity problems or we could be unable to recover all expenditures.

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906469--3/2/2006--WASHINGTON_GROUP_INTERNATIONAL_INC