The Stirling Dam upgrade is designed to improve water security in the Great Southern, connecting the Integrated Water Supply System with the Great Southern Town Water Supply Scheme.
The scope of works will comprise an eight-kilometre pipeline to be built from the southern end of Stirling Dam, as well as construction of a new pump station at the dam.
Work is expected to be completed by the end of November.
The deals follow Valmec winning a $5.4 million deal to provide construction works at DBP Development Group’s Tubridgi gas storage facility last month.
At the time that contract was awarded, Valmec said its current order book in the gas and infrastructure markets exceeded $55 million.
Other big deals in its order book include a $13.3 million contract for John Holland at the Northlink WA road upgrade project, and new water pipelines and other facilities for Saracen Mineral Holdings, worth $6.6 million.
At the end of the first half of FY2017, Valmec’s revenue had grown 10 per cent, to $29.9 million, however, net profit was down 76.4 per cent, to just $83,000.
Valmec said client delays and a slow ramp-up of its gas construction projects impacted revenues in the half year, while flagging improved earnings returns in the second half of FY2017.
At 10:30AM WST, Valmec shares were down 11 per cent, at 12 cents.