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| UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549FORM 10-K                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| [X]           annual report pursuant to section 13 or 15(d) of the securities exchange act of 1934For the fiscal year ended: December 31, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| [   ]           transition report pursuant to section 13 or 15(d) of the securities exchange act of 1934For the transition period from _______________________to ________________________________                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Commission file number 1-31993                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| STERLING CONSTRUCTION COMPANY, INC.(Exact name of registrant as specified in its charter)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| DelawareState or other jurisdiction ofincorporation or organization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 25-1655321(I.R.S. EmployerIdentification No.) |
| 20810 Fernbush LaneHouston, Texas(Address of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  77073(Zip Code) |
| Registrant's telephone number, including area code (281) 821-9091                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Securities registered pursuant to Section 12(b) of the Act:Title of each classCommon Stock, $0.01 par value per share(Title of Class)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Name of each exchange on which registeredThe NASDAQ Stock Market LLC |
| Securities registered pursuant to section 12(g) of the Act:None                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.[  ] Yes   [√] No                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.[  ] Yes   [√] No                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.[√] Yes  [   ] No                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter prior that the registrant was required to submit and post such files).[  ] Yes  [  ] NoIndicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K [ ]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.Large accelerated filer  [  ]                                                                                                                         Accelerated filer [√]Non-accelerated filer    [  ] (Do not check if a smaller reporting company)                                       Smaller reporting company [ ] |
| Indicate by check mark if the registrant is a shell company (as defined in Rule 12b-2 of the Act). [   ] Yes  [√] No                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Aggregate market value of the voting and non-voting common equity held by non-affiliates at June 30, 2010: $198,373,914.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| At March 2, 2011, the registrant had  16,454,478 shares of common stock outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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Sterling Construction Company, Inc.

| Part I                                                                                                                                      |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Cautionary Comment Regarding Forward-Looking Statements                                                                                     | 3      |
| Item 1.     Business                                                                                                    | 4      |
| Access to the Company's Filings                                                                                                             | 4      |
| Overview of the Company's Business                                                                                                          | 4      |
| Our Business Strategy                                                                                                                       | 5      |
| Our Markets                                                                                                                                 | 6      |
| Our Customers                                                                                                                               | 8      |
| Competition                                                                                                                                 | 9      |
| Backlog                                                                                                                                     | 10     |
| Construction Delivery Methods                                                                                                               | 10     |
| Contracts                                                                                                                                   | 11     |
| Joint Ventures                                                                                                                              | 12     |
| Insurance and Bonding                                                                                                                       | 12     |
| Government and Environmental Regulations                                                                                                    | 13     |
| Employees                                                                                                                                   | 13     |
| Item 1A.   Risk Factors                                                                                                           | 14     |
|     Risks Relating to Our Business                                                                                      | 14     |
|     Risks Relating to Our Financial Results and Financing Plans                                                         | 19     |
| Item 1B.   Unresolved Staff Comments                                                                                         | 21     |
| Item 2.     Properties                                                                                             | 21     |
| Item 3.     Legal Proceedings                                                                                      | 21     |
| Item 4.     Reserved by Security and Exchange Commision                                                            | 21     |
| Part II                                                                                                                                     |   |
| Item 5.     Market for the Registrant’s Common Equity, Related Stockholder Matters and                       |   |
|                  Issuer Purchases of Equity Securities | 22     |
| Dividend Policy                                                                                                                             | 22     |
| Equity Compensation Plan Information                                                                                                        | 22     |
| Performance Graph                                                                                                                           | 22     |
| Issuer Purchases of Equity Securities                                                                                                       | 23     |
| Item 6.     Selected Financial Data                                                                                | 24     |
| Item 7.     Management’s Discussion and Analysis of Financial Condition and Results of Operations            | 25     |
| Overview                                                                                                                                    | 25     |
| Critical Accounts Policies                                                                                                                  | 25     |
| Results of Operations                                                                                                                       | 27     |
| Historical Cash Flows                                                                                                                       | 31     |
| Liquidity                                                                                                                                   | 32     |
| Sources of Capital                                                                                                                          | 33     |
| Contractual Obligations                                                                                                                     | 34     |
| Capital Expenditures                                                                                                                        | 35     |
| Inflation                                                                                                                                   | 35     |
| Off-Balance Sheet Arrangements and Joint Ventures                                                                                           | 35     |
| New Accounting Pronouncements                                                                                                               | 35     |
| Item 7A. Quantitative and Qualitative Disclosures About Market Risk                                                                         | 36     |
| Item 8.    Financial Statements and Supplementary Data                                                                  | 36     |
| Item 9.    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                    | 36     |
| Item 9A. Controls and Procedures                                                                                                            | 36     |
| Evaluation of Disclosure Controls and Procedures                                                                                            | 36     |
| Management’s Report on Internal Control over Financial Reporting                                                                      | 36     |
| Changes in Internal Control over Financial Reporting                                                                                        | 36     |
| Inherent Limitations on Effectiveness of Controls                                                                                           | 37     |
| Item 9B. Other Information                                                                                                                  | 37     |
| Part III                                                                                                                                    |   |
| Item 10.   Directors , Executive Officers and Corporate Governance                                                                | 37     |
| Item 11.   Executive Compensation                                                                                                 | 37     |
| Item 12.   Security Ownership of Certain Beneficial Owners and Management and                                                     |   |
|                 Related Stockholder Matters                 | 37     |
| Item 13.   Certain Relationships and Related Transactions, and Director Independence                                              | 37     |
| Item 14.   Principal Accountant and Fees and Services                                                                             | 37     |
| Part IV                                                                                                                                     |   |
| Item 15.   Exhibits and Financial Statements, Schedules                                                                           | 38     |
| Financial Statements                                                                                                                        | 38     |
| Exhibits                                                                                                                                    | 39     |
| Signatures                                                                                                                                  | 40     |

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| ·   | changes in general economic conditions, including recessions, reductions in federal, state and local government funding for infrastructure services and changes in those governments’ budgets, practices, laws and regulations; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | delays or difficulties related to the completion of our projects, including additional costs, reductions in revenues or the payment of liquidated damages, or delays or difficulties related to obtaining required governmental permits and approvals; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | actions of suppliers, subcontractors, design engineers, joint venture partners, customers, competitors, banks, surety companies and others which are beyond our control, including suppliers’, subcontractors, and joint venture partners’ failure to perform; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the effects of estimates inherent in our percentage-of-completion accounting policies, including onsite conditions that differ materially from those assumed in our original bid, contract modifications, mechanical problems with our machinery or equipment and effects of other risks discussed in this document; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | design/build contracts which subject us to the risk of design errors and omissions; |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | cost escalations associated with our contracts, including changes in availability, proximity and cost of materials such as steel, cement, concrete, aggregates, oil, fuel and other construction materials, and cost escalations associated with subcontractors and labor; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our dependence on a few significant customers; |
|--------------------|------------------------------------------------|

| ·   | adverse weather conditions; although we prepare our budgets and bid contracts based on historical rain and snowfall patterns, the incidence of rain, snow, hurricanes, etc., may differ materially from these expectations; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the presence of competitors with greater financial resources or lower margin requirements than us, and the impact of competitive bidders on our ability to obtain new backlog at reasonable margins acceptable to us; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our ability to successfully identify, finance, complete and integrate acquisitions; |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | citations issued by any governmental authority, including the Occupational Safety and Health Administration; |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | federal, state and local environmental laws and regulations -- non-compliance can result in penalties and/or termination of contracts as well as civil and criminal liability; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the current instability of financial institutions, which could cause losses on our cash and cash equivalents and short-term investments;  |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | adverse economic conditions in our markets in Texas, Utah and Nevada; and |
|--------------------|---------------------------------------------------------------------------|

| ·   | the other factors discussed in more detail in Item 1A. —Risk Factors. |
|--------------------|-----------------------------------------------------------------------------|

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| ·   | Expand on RLW’s significant experience in design-build, CM/GC and other project delivery methods. |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | Utilize RLW’s significant structural construction expertise. |
|--------------------|--------------------------------------------------------------------|

| ·   | Expand into an attractive market with good long-term growth dynamics. |
|--------------------|-----------------------------------------------------------------------|

| ·   | Complement our existing market locations and advance our strategy of geographical diversification. |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | Partner with a strong and innovative management team with a similar corporate culture. |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | Benefit from RLW’s strong financial results and immediate accretion to our earnings per share. |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | Continue to Add Construction Capabilities - by adding capabilities that augment our core contracting and construction competencies, we are able to improve gross margin opportunities, and more effectively compete for contracts that might not otherwise be available to us. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Expand into New Markets and Selectively Pursue Opportunities and Strategic Acquisitions - we will continue to seek to identify attractive new markets and opportunities in select western, southwestern and southeastern U.S. areas. We will also continue to assess opportunities to extend our service capabilities and expand our markets through acquisitions. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Apply Core Competencies Across our Markets - we will seek to capitalize on opportunities to export our Texas experience constructing water infrastructure projects and our Nevada earthmoving, aggregates and asphalt paving experience into our Texas and Utah markets. Similarly, we believe that RLW’s experience with design-build, CM/GC and other alternative project delivery methods in Utah can enhance opportunities for us in our Texas and Nevada markets. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Increase our Market Leadership in our Core Markets - we have a strong presence in a number of markets in Texas, Utah and Nevada and intend to expand our presence in these states and other states where we believe contracting opportunities exist. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Position our Business for Future Infrastructure Spending - currently there are considerable uncertainties surrounding federal, state and local funding in our markets; however, we believe there is awareness of the need to build, reconstruct and repair our country’s infrastructure, including transportation infrastructure, such as bridges, highways, and mass transit systems and water infrastructure, such as water, wastewater and storm drainage systems.  We will continue to build our expertise to capture this infrastructure spending. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Continue to Attract, Retain and Develop our Employees - we believe that our employees are key to the successful implementation of our business strategy, and we will continue allocating significant resources in order to attract and retain talented managers and supervisory and field personnel. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Recent reductions in miles driven in the U.S. and more fuel efficient vehicles are reducing federal and state gasoline taxes, tolls and other highway related taxes collected, which are the primary funding sources for construction of highways and bridges.  Also, the federal and Texas highway gasoline tax rates per gallon have not increased since 1994 and 1991, respectively. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The federal government has not renewed the five-year SAFETEA-LU bill, which expired  September 30, 2009 and currently the federal government has extended funding for transportation infrastructure projects to September 30, 2011, which has caused uncertainty over subsequent month’s and years’ federal funding to the states for budgeting of future transportation infrastructure lettings. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The nationwide decline in home values as a result of the decline in home sales, the increase in foreclosures and a prolonged recession has resulted in decreases in property taxes and some other local taxes, which are among the sources of funding for municipal road, bridge and water infrastructure construction. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | While our business does not include residential and commercial infrastructure work, the severe fall-off in new project development in those markets has resulted in some residential and commercial infrastructure contractors bidding on smaller public sector transportation and water infrastructure projects, sometimes at bid levels below our break-even pricing, thus increasing competition and creating downward pressure on bid prices in our markets. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Traditional competitors on larger transportation and water infrastructure projects also appear to have been bidding at less than normal margins, and sometimes at bid levels below our break-even pricing, in order to replenish their reduced backlogs. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We have also seen some new competitors from out-of-state bidding on large transportation projects; thus, adding to the competitive environment. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | onsite conditions that differ from those assumed in the original bid or contract; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | failure to include required materials or work in a bid, or the failure to estimate properly the quantities or costs needed to complete a lump sum contract; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | delays caused by weather conditions; |
|--------------------|--------------------------------------|

| ·   | contract or project modifications creating unanticipated costs not covered by change orders; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | changes in availability, proximity and costs of materials, including steel, concrete, aggregates and other construction materials (such as stone, gravel, sand and oil for asphalt paving), as well as fuel and lubricants for our equipment; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | inability to predict the costs of accessing and producing aggregates and purchasing oil required for asphalt paving projects; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

| ·   | availability and skill level of workers in the geographic location of a project; |
|--------------------|----------------------------------------------------------------------------------|

| ·   | failure by our suppliers, subcontractors, designers, engineers, joint venture partners or customers to perform their obligations; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | fraud, theft or other improper activities by our suppliers, subcontractors, designers, engineers, joint venture partners or customers or our own personnel; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | mechanical problems with our machinery or equipment; |
|--------------------|------------------------------------------------------|

| ·   | citations issued by any governmental authority, including the Occupational Safety and Health Administration; |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | difficulties in obtaining required governmental permits or approvals; |
|--------------------|-----------------------------------------------------------------------|

| ·   | changes in applicable laws and regulations; and |
|--------------------|------------------------------------------------------|

| ·   | claims or demands from third parties for alleged damages arising from the design, construction or use and operation of a project of which our work is part. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | difficulties in the integration of operations and systems; |
|--------------------|------------------------------------------------------------|

| ·   | difficulties applying our expertise in one market into another market; |
|--------------------|------------------------------------------------------------------------|

| ·   | regulatory requirements that impose restrictions on bidding for certain projects because of historical operations by Sterling or the acquired company; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the key personnel, customers and project partners of the acquired company may terminate or diminish their relationships with the acquired company; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | we may experience additional financial and accounting challenges and complexities in areas such as tax planning and financial reporting; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | we may assume or be held liable for risks and liabilities (including for environmental-related costs and liabilities) as a result of our acquisitions, some of which we may not discover during our due diligence; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | we may not adequately anticipate competitive and other market factors applicable to the acquired company; |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | our ongoing business may be disrupted or receive insufficient management attention; and |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | we may not be able to realize cost savings or other financial benefits we anticipated or we may not realize the anticipated benefits in the time frame that we expected. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | make distributions, pay dividends and buy back shares; |
|--------------------|--------------------------------------------------------|

| ·   | incur liens or encumbrances; |
|--------------------|------------------------------|

| ·   | incur indebtedness; |
|--------------------|---------------------|

| ·   | guarantee obligations; |
|--------------------|------------------------|

| ·   | dispose of a material portion of assets or otherwise engage in a merger with a third party; |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | make acquisitions; and |
|--------------------|-----------------------------|

| ·   | incur losses for two consecutive quarters. |
|--------------------|--------------------------------------------|

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|   | Item 4. | Reserved by the Securities and Exchange Commission. |
|--------|---------|-----------------------------------------------------|

| Name                                 | Age    | Position/Offices                                                  | Executive Officer Since |
|--------------------------------------|--------|-------------------------------------------------------------------|-------------------------|
| Patrick T. Manning (1)               | 65     | Chairman & Chief Executive Officer                            | 2001                    |
| Joseph P. Harper, Sr. (1)            | 65     | President & Chief Operating Officer, Treasurer                | 2001                    |
| James H. Allen, Jr.                  | 70     | Chief Financial Officer                                           | 2007                    |
| Anthony F. Colombo                   | 50     | Executive Vice President — Operations                       | 2010                    |
| Joseph P. Harper, Jr.                | 39     | Executive Vice President — Finance                          | 2010                    |
| Brian R. Manning                     | 44     | Executive Vice President & Chief Business Development Officer | 2010                    |
| Roger M. Barzun                      | 69     | Senior Vice President & General Counsel, Secretary            | 2006                    |
| (1) Member of the Board of Directors |   |

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|   | Item 5. | Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------|

|                                      |   | High   |   |   | Low    |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|
| Year Ended December 31, 2009              |   |   |   |   |   |   |
| First Quarter                             |   | $      | 19.69  |   |   | $      | 14.01 |   |
| Second Quarter                            |   |   | 19.88  |   |   |   | 12.59 |   |
| Third Quarter                             |   |   | 18.25  |   |   |   | 14.48 |   |
| Fourth Quarter                            |   |   | 19.90  |   |   |   | 15.61 |   |
| Year Ended December 31, 2010              |   |   |   |   |   |   |   |   |
| First Quarter                             |   |   | 21.15  |   |   |   | 15.67 |   |
| Second Quarter                            |   |   | 17.94  |   |   |   | 12.94 |   |
| Third Quarter                             |   |   | 13.58  |   |   |   | 10.62 |   |
| Fourth Quarter                            |   |   | 14.08  |   |   |   | 11.92 |   |
| January 1, 2011 through February 28, 2011 |   |   | 13.88  |   |   |   | 12.42 |   |

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|                                      | December 2005($) | December 2006($) | December 2007($) | December 2008($) | December 2009($) | December 2010($) |
|-------------------------------------------|------------------|------------------|------------------|------------------|------------------|------------------|
|  Sterling Construction Company, Inc. | 100.00           | 129.29           | 129.65           | 110.10           | 113.73           | 77.48            |
|  Dow Jones US                        | 100.00           | 115.57           | 122.51           | 76.98            | 99.15            | 115.66           |
|  Dow Jones US Heavy Construction     | 100.00           | 124.74           | 236.96           | 106.34           | 121.55           | 156.07           |

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|                                                                                                             |   | Years Ended December 31,                    |    |
|------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|---------|
|                                                                                                             |   | 2010                                        |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                                                                             |   | (Amount in thousands except per-share data) |    |
| Operating Results:                                                                                               |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                                                                         |   | $                                           | 459,893 |   |   | $ | 390,847 |   |   | $ | 415,074 |   |   | $ | 306,220 |   |   | $ | 249,348 |   |
| Income from continuing operations before income taxes and earnings attributable to noncontrolling interests |   | $                                           | 36,494  |   |   | $ | 37,795 |   |   | $ | 28,999 |   |   | $ | 22,396 |   |   | $ | 19,204 |   |
| Income tax expense                                                                                               |   |                                        | (10,270 | ) |   |   | (12,267 | ) |   |   | (10,025 | ) |   |   | (7,890 | ) |   |   | (6,566 | ) |
| Income from continuing operations                                                                                |   |                                        | 26,224  |   |   |   | 25,528 |   |   |   | 18,974 |   |   |   | 14,506 |   |   |   | 12,638 |   |
| Income from discontinued operations, including gain on sale in 2006                                              |   |                                        | --      |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 682 |   |
| Net income                                                                                                       |   |                                        | 26,224  |   |   |   | 25,528 |   |   |   | 18,974 |   |   |   | 14,506 |   |   |   | 13,320 |   |
| Noncontrolling owners’ interests in earnings of subsidiaries                                               |   |                                        | (7,137  | ) |   |   | (1,824 | ) |   |   | (908 | ) |   |   | (62 | ) |   |   | -- |   |
| Net income attributable to Sterling common stockholders                                                          |   | $                                           | 19,087  |   |   | $ | 23,704 |   |   | $ | 18,066 |   |   | $ | 14,444 |   |   | $ | 13,320 |   |
| Basic and diluted per share amounts attributable to Sterling common stockholders:                                |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share from -                                                                                  |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing operations                                                                                            |   | $                                           | 1.15    |   |   | $ | 1.77 |   |   | $ | 1.38 |   |   | $ | 1.31 |   |   | $ | 1.19 |   |
| Discontinued operations                                                                                          |   |                                        | --      |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 0.06 |   |
| Basic earnings per share                                                                                         |   | $                                           | 1.15    |   |   | $ | 1.77 |   |   | $ | 1.38 |   |   | $ | 1.31 |   |   | $ | 1.25 |   |
| Basic weighted average shares                                                                                    |   |                                        | 16,195  |   |   |   | 13,359 |   |   |   | 13,120 |   |   |   | 11,044 |   |   |   | 10,583 |   |
| Diluted earnings per share from -                                                                                |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing operations                                                                                            |   | $                                           | 1.13    |   |   | $ | 1.71 |   |   | $ | 1.32 |   |   | $ | 1.22 |   |   | $ | 1.08 |   |
| Discontinued operations                                                                                          |   |                                        | --      |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 0.06 |   |
| Diluted earnings per share                                                                                       |   | $                                           | 1.13    |   |   | $ | 1.71 |   |   | $ | 1.32 |   |   | $ | 1.22 |   |   | $ | 1.14 |   |
| Diluted weighted average shares outstanding                                                                      |   |                                        | 16,563  |   |   |   | 13,856 |   |   |   | 13,702 |   |   |   | 11,836 |   |   |   | 11,714 |   |
|                                                                                                             |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends declared                                                                                          |   | $                                           | --      |   |   | $ | -- |   |   | $ | -- |   |   | $ | -- |   |   | $ | -- |   |
|                                                                                                             |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance Sheet:                                                                                                   |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                                                                     |   | $                                           | 367,131 |   |   | $ | 385,741 |   |   | $ | 289,615 |   |   | $ | 274,515 |   |   | $ | 167,772 |   |
| Long-term debt                                                                                                   |   | $                                           | 336     |   |   | $ | 40,409 |   |   | $ | 55,483 |   |   | $ | 65,556 |   |   | $ | 30,659 |   |
| Equity attributable to Sterling common stockholders                                                              |   | $                                           | 250,429 |   |   | $ | 230,766 |   |   | $ | 159,116 |   |   | $ | 138,612 |   |   | $ | 90,991 |   |
| Book value per share of outstanding common stock attributable to Sterling common stockholders                    |   | $                                           | 15.21   |   |   | $ | 14.35 |   |   | $ | 12.07 |   |   | $ | 10.66 |   |   | $ | 8.37 |   |
| Shares outstanding                                                                                               |   |                                        | 16,468  |   |   |   | 16,082 |   |   |   | 13,185 |   |   |   | 13,007 |   |   |   | 10,875 |   |

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| ·   | The nature of the products and services — each of our local offices perform similar construction projects: they build, reconstruct and repair roads, highways, bridges, light and commuter rail and water, waste water and storm drainage systems. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The nature of the production processes — our heavy civil construction services rendered in the construction production process for each of our construction projects performed by each local office is the same: they excavate dirt, remove existing pavement and pipe, lay aggregate or concrete pavement, pipe and rail and build bridges and similar large structures in order to complete our projects. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The type or class of customer for products and services — substantially all of our customers are federal and state departments of transportation, cities, counties, and regional water, rail and toll-road authorities. A substantial portion of the funding for the state departments of transportation to finance the projects we construct is furnished by the federal government. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The methods used to distribute products or provide services — the heavy civil construction services rendered on our projects are performed primarily with our own field work crews (laborers, equipment operators and supervisors) and equipment (backhoes, loaders, dozers, graders, cranes, pug mills, crushers, and concrete and asphalt plants). |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The nature of the regulatory environment — we perform substantially all of our projects for federal, state and municipal governmental agencies, and all of the projects that we perform are subject to substantially similar regulation under U.S. and state department of transportation rules, including prevailing wage and hour laws; codes established by the federal government and municipalities regarding water and waste water systems installation; and laws and regulations relating to workplace safety and worker health of the U.S. Occupational Safety and Health Administration and to the employment of immigrants of the U.S. Department of Homeland Security. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | While our business includes only minimal residential and commercial infrastructure work, the severe fall-off in new projects in those markets has resulted in some residential and commercial infrastructure contractors bidding on some public sector transportation and water infrastructure projects, sometimes at bid levels below our break-even pricing, thus increasing competition and creating downward pressure on bid prices in our markets. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Traditional competitors on larger transportation and water infrastructure projects also appear to have been bidding at less than normal margins, sometimes at bid levels below our break-even pricing, in order to replenish their reduced backlogs. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The entrance of new competitors from other states. |
|--------------------|----------------------------------------------------|

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|                                                                                  |   | 2010                          |    |   | 2009   |   |    | % Change |   |
|---------------------------------------------------------------------------------------|--------|-------------------------------|---------|--------|--------|--------|---------|----------|--------|
|                                                                                  |   | (Dollar amounts in thousands) |    |   |   |   |
| Revenues                                                                              |   | $                             | 459,893 |   |   | $      | 390,847 |     |   |   | 17.7 | % |
| Gross profit                                                                          |   |                          | 62,705  |   |   |   | 54,369  |     |   |   | 15.3 | % |
| Gross margin                                                                          |   |                          | 13.6    | %      |   |   | 13.9    | %        |   |   |   |   |
| General and administrative expenses                                                   |   |                          | (24,895 | )      |   |   | (14,971 | )        |   |   | 66.3 | % |
| Unusual items                                                                         |   |                          | --      |   |   |   | (2,211  | )        |   | NM |   |
| Other income (expense)                                                                |   |                          | (1,900  | )      |   |   | (249    | )        |   |   | 663.1 | % |
| Operating income                                                                      |   |                          | 35,910  |   |   |   | 36,938  |     |   |   | (2.8 | %) |
| Operating margin                                                                      |   |                          | 7.8     | %      |   |   | 9.5     | %        |   |   |   |   |
| Gain (loss) on the sale of short-term investments                                     |   |                          | (38     | )      |   |   | 519     |     |   |   | (107.3 | )% |
| Interest income                                                                       |   |                          | 1,809   |   |   |   | 572     |     |   |   | 216.3 | % |
| Interest expense                                                                      |   |                          | (1,187  | )      |   |   | (234    | )        |   |   | 407.3 | % |
| Income before taxes                                                                   |   |                          | 36,494  |   |   |   | 37,795  |     |   |   | (3.4 | %) |
| Income taxes                                                                          |   |                          | (10,270 | )      |   |   | (12,267 | )        |   |   | (16.3 | %) |
| Net income                                                                            |   |                          | 26,224  |   |   |   | 25,528  |     |   |   | 2.7 | % |
| Noncontrolling owners’ interests in earnings of subsidiaries and joint ventures |   |                          | (7,137  | )      |   |   | (1,824  | )        |   |   | 291.3 | % |
| Net income attributable to Sterling common stockholders                               |   | $                             | 19,087  |   |   | $      | 23,704  |     |   |   | (19.5 | %) |
| Contract backlog, end of year                                                         |   | $                             | 660,000 |   |   | $      | 647,000 |     |   |   | 2.3 | % |
| NM – not meaningful                                                             |   |                          |    |   |   |   |    |     |   |   |   |   |

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|                                                                                  |   | 2009                          |    |   | 2008   |   |    | % Change |   |
|---------------------------------------------------------------------------------------|--------|-------------------------------|---------|--------|--------|--------|---------|----------|--------|
|                                                                                  |   | (Dollar amounts in thousands) |    |   |   |   |
| Revenues                                                                              |   | $                             | 390,847 |   |   | $      | 415,074 |     |   |   | (5.8 | %) |
| Gross profit                                                                          |   |                          | 54,369  |   |   |   | 41,972  |     |   |   | 29.5 | % |
| Gross margin                                                                          |   |                          | 13.9    | %      |   |   | 10.1    | %        |   |   |   |   |
| General and administrative expenses                                                   |   |                          | (14,971 | )      |   |   | (13,763 | )        |   |   | 8.8 | % |
| Unusual items                                                                         |   |                          | (2,211  | )      |   |   | --      |     |   | NM |   |
| Other income (expense)                                                                |   |                          | (249    | )      |   |   | (81     | )        |   |   | 207.4 | % |
| Operating income                                                                      |   |                          | 36,938  |   |   |   | 28,128  |     |   |   | 33.2 | % |
| Operating margin                                                                      |   |                          | 9.5     | %      |   |   | 6.8     | %        |   |   |   |   |
| Gain (loss) on the sale of short-term investments                                     |   |                          | 519     |   |   |   | --      |     |   | NM |   |
| Interest income                                                                       |   |                          | 572     |   |   |   | 1,070   |     |   |   | (46.5 | %) |
| Interest expense                                                                      |   |                          | (234    | )      |   |   | (199    | )        |   |   | 17.6 | % |
| Income before taxes                                                                   |   |                          | 37,795  |   |   |   | 28,999  |     |   |   | 30.3 | % |
| Income taxes                                                                          |   |                          | (12,267 | )      |   |   | (10,025 | )        |   |   | 22.4 | % |
| Net income                                                                            |   |                          | 25,528  |   |   |   | 18,974  |     |   |   | 34.5 | % |
| Noncontrolling owners’ interests in earnings of subsidiaries and joint ventures |   |                          | (1,824  | )      |   |   | (908    | )        |   |   | 100.9 | % |
| Net income attributable to Sterling common stockholders                               |   | $                             | 23,704  |   |   | $      | 18,066  |     |   |   | 31.2 | % |
| Contract backlog, end of year                                                         |   | $                             | 647,000 |   |   | $      | 448,000 |     |   |   | 44.4 | % |
| NM – not meaningful                                                             |   |                          |    |   |   |   |    |     |   |   |   |   |

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|                                                      |   | Year ended December 31, |    |
|-----------------------------------------------------------|--------|-------------------------|---------|
|                                                      |   | 2010                    |    |   | 2009 |   |   | 2008 |   |
|                                                      |   | (Amounts in thousands)  |    |
| Cash and cash equivalents (at end of period)              |   | $                       | 49,441  |   |   | $ | 54,406 |   |   | $ | 55,305 |   |
| Net cash provided by (used in):                           |   |                    |    |   |   |   |   |   |   |   |   |   |
|     Operating activities              |   |                    | 47,073  |   |   |   | 47,346 |   |   |   | 26,721 |   |
|     Investing activities              |   |                    | (8,856  |  ) |   |   | (79,730 |  ) |   |   | (42,719 | ) |
|     Financing activities              |   |                    | (43,182 |  ) |   |   | 31,485 |   |   |   | (9,346 | ) |
| Supplementary information:                                |   |                    |    |   |   |   |   |   |   |   |   |   |
|   Capital expenditures                          |   |                    | 13,409  |   |   |   | 5,277 |   |   |   | 19,896 |   |
|   Working capital (at end of  period) |   |                    | 107,278 |   |   |   | 113,878 |   |   |   | 95,123 |   |

| ·   | depreciation and amortization (which for 2010 totaled $15.8 million) increased  $2.0 million from 2009 which had increased $0.6 million from 2008 as a result of capital expenditures of $13.4  million in 2010 and $5.3 million in 2009 and a full year's depreciation in 2010 on equipment purchased in the RLW acquisition in December 2009; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | deferred tax expense was $3.9 million, $4.5 million and $8.9 million in 2010, 2009 and 2008, respectively, mainly attributable to accelerated depreciation methods used on equipment for tax purposes and amortization for tax return purposes of goodwill arising in the acquisition of RHB and RLW. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | contracts receivable decreased by $10.0 million in the current year and $15.1 million in 2009 versus an increase of $6.2 million in 2008 due to the reductions in revenues in Texas and Nevada during 2010 and 2009 versus 2008; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the increase in cost and estimated earnings in excess of billings on uncompleted contracts of $4.1 million for 2010, versus a decrease of $3.8 million for 2009, was due to an increase in the volume of materials purchased for certain projects at December 31, 2010, but not billed to the customer until 2011 and the timing of other billings; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the increase in receivables from and the equity in construction joint ventures of $4.4 million for 2010 to $6.7 million at December 31, 2010 versus a balance of $2.3 million at December 31, 2009.  This increase resulted from increased activity in 2010 by joint ventures of our Utah operations. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | accounts payable increased by $2.3 million in 2010 as compared to a decrease of $11.2 million in 2009.  The decrease in 2009 was due to lower project activity during the fourth quarter of 2009; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | billings in excess of costs and estimated earnings on uncompleted contracts decreased by $13.3 million in 2010 as compared to a decrease of  $3.6 million in 2009 due to a reduction in advance billings. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | customer receivables and contract retentions; |
|--------------------|-----------------------------------------------|

| ·   | costs and estimated earnings in excess of billings; |
|--------------------|-----------------------------------------------------|

| ·   | billings in excess of costs and estimated earnings; |
|--------------------|-----------------------------------------------------|

| ·   | investments in our unconsolidated construction joint ventures; |
|--------------------|----------------------------------------------------------------|

| ·   | the size and status of contract mobilization payments and progress billings; and |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | the amounts owed to suppliers and subcontractors. |
|--------------------|---------------------------------------------------|

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| Net income                                        |   | $      | 26,224  |   |
|---------------------------------------------------|--------|--------|---------|--------|
| Depreciation and amortization                     |   |   | 15,770  |   |
| Deferred tax expense                              |   |   | 3,860   |   |
| Capital expenditures                              |   |   | (13,409 | )      |
| Debt repayment, net of drawdowns                  |   |   | (40,000 | )      |
| Dividends paid to noncontrolling interests owners |   |   | (4,160  | )      |
| Other                                             |   |   | 5,115   |   |
| Total decrease in working capital                 |   | $      | (6,600  | )      |

| ·   | Make distributions or pay dividends; |
|--------------------|--------------------------------------|

| ·   | Incur liens and encumbrances; |
|--------------------|-------------------------------|

| ·   | Incur further indebtedness; |
|--------------------|-----------------------------|

| ·   | Guarantee obligations; |
|--------------------|------------------------|

| ·   | Dispose of a material portion of assets or merge with a third party; |
|--------------------|----------------------------------------------------------------------|

| ·   | Incur negative income for two consecutive quarters. |
|--------------------|-----------------------------------------------------|

| ·   | Make investments in securities. |
|--------------------|---------------------------------|

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|             |   | Payments due by Period |   |
|------------------|--------|------------------------|--------|
|             |   | Total                  |   |   | < 1 Year |   |   | 1-3 Years |   |   | 4-5 Years |   |   | > 5 Years |   |
|             |   | (Amounts in thousands) |   |
| Credit Facility  |   | $                      | --     |   |   | $ | -- |   |   | $ | -- |   |   | $ | -- |   |   | $ | -- |   |
| Operating leases |   |                   | 6,525  |   |   |   | 1,048 |   |   |   | 1,457 |   |   |   | 908 |   |   |   | 3,112 |   |
| Mortgage         |   |                   | 409    |   |   |   | 73 |   |   |   | 219 |   |   |   | 117 |   |   |   | -- |   |
|             |   | $                      | 6,934  |   |   | $ | 1,121 |   |   | $ | 1,676 |   |   | $ | 1,025 |   |   | $ | 3,112 |   |

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| Item 7A. | Quantitative and Qualitative Disclosures About Market Risk. |
|----------|-------------------------------------------------------------|

| Item 8. | Financial Statements and Supplementary Data. |
|---------|----------------------------------------------|

| Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. |
|---------|---------------------------------------------------------------------------------------|

|   | None |
|--------|------|

| Item 9A. | Controls and Procedures. |
|----------|--------------------------|

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| Item 9B. | Other Information. |
|----------|--------------------|

|   | PART III |
|--------|----------|

| Item 10. | Directors, Executive Officers and Corporate Governance. |
|----------|---------------------------------------------------------|

| Item 10 Information                                                                                                                                               |   | Location/Heading in the Proxy Statement             |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| Directors                                                                                                                                                         |   | Election of Directors (Proposal 1)                  |
| Compliance With Section 16(a) of the Exchange Act                                                                                                                 |   | Stock Ownership Information                         |
| Code of Ethics                                                                                                                                                    |   | The Corporate Governance & Nominating Committee |
| Communication with the Board; nominations; Board and committee meetings; committees of the Board; Board leadership and risk oversight; and director compensation. |   | Board Operations                                    |

| Item 11. | Executive Compensation |
|----------|------------------------|

| Item 12. | Security Ownership of Certain Beneficial Owners and Management, and Related Stockholder Matters. |
|----------|--------------------------------------------------------------------------------------------------|

| Item 13. | Certain Relationships and Related Transactions, and Director Independence. |
|----------|----------------------------------------------------------------------------|

----

| Item 15. | Exhibits and Financial Statement Schedules. |
|----------|---------------------------------------------|

|   | The following Financial Statements and Financial Statement Schedules are filed with this Report: |
|--------|--------------------------------------------------------------------------------------------------|

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| Hallwood Holdings Incorporated | May 1991 to July 1993       |
|--------------------------------|-----------------------------|
| Oakhurst Capital, Inc.         | July 1993 to April 1995     |
| Oakhurst Company, Inc.         | April 1995 to November 2001 |

| Number  | Exhibit Title                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1     | Purchase Agreement by and among Richard H. Buenting, Fisher Sand & Gravel Co., Thomas Fisher and Sterling Construction Company, Inc. dated as of October 31, 2007 (incorporated by reference to Exhibit number 2.1 to Sterling Construction Company, Inc.'s Current Report on Form 8-K, Amendment No. 1 filed on November 21, 2007 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 2.2     | Purchase Agreement, dated as of December 3, 2009, by and among Kip Wadsworth, Ty Wadsworth, Con Wadsworth, Tod Wadsworth and Sterling Construction Company, Inc. (incorporated by reference to Exhibit 2.1 to Sterling Construction Company, Inc.'s Current Report on Form 8 K, filed on December 3, 2009 (SEC File No. 1-31993))                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 3.1     | Certificate of Incorporation of Sterling Construction Company, Inc. (incorporated by reference to Exhibit 3.0 to Sterling Construction Company, Inc.'s Quarterly Report on Form 10-Q, filed on August 10, 2009 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 3.2     | Bylaws of Sterling Construction Company, Inc. as amended through March 13, 2008 (incorporated by reference to Exhibit 3.1 to Sterling Construction Company, Inc.'s Current Report on Form 8-K, filed on March 19, 2008 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.1     | Form of Common Stock Certificate of Sterling Construction Company, Inc. (incorporated by reference to Exhibit 4.5 to its Form 8-A, filed on January 11, 2006 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.1#   | Oakhurst Company, Inc. 2001 Stock Incentive Plan (incorporated by reference to Exhibit 10.6 to Sterling Construction Company, Inc.'s Registration Statement on Form S-1, filed on November 17, 2005 (SEC File No. 333-129780)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.2#   | Forms of Stock Option Agreement under the Oakhurst Company, Inc. 2001 Stock Incentive Plan (incorporated by reference to Exhibit 10.51 to Sterling Construction Company, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2004, filed on March 29, 2005 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.3#   | Summary of the Compensation Plan for Non-Employee Directors of Sterling Construction Company, Inc. (incorporated by reference to Exhibit 10.1 to Sterling Construction Company, Inc.'s Quarterly Report on Form 10-Q, filed on August 11, 2008 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.4    | Credit Agreement by and among Sterling Construction Company, Inc., Texas Sterling Construction Co., Oakhurst Management Corporation and Comerica Bank and the other lenders from time to time party thereto, and Comerica Bank as administrative agent for the lenders, dated as of October 31, 2007 (incorporated by reference to Exhibit 10.1 to Sterling Construction Company, Inc.'s Current Report on Form 8-K, Amendment No. 1 filed on November 21, 2007 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.5    | Security Agreement by and among Sterling Construction Company, Inc., Texas Sterling Construction Co., Oakhurst Management Corporation and Comerica Bank as administrative agent for the lenders, dated as of October 31, 2007 (incorporated by reference to Exhibit 10.4 to Sterling Construction Company, Inc.'s Quarterly Report on Form 10-Q, filed on November 9, 2009 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.6    | Joinder Agreement by Road and Highway Builders, LLC and Road and Highway Builders Inc. dated as of October 31, 2007 (incorporated by reference to Exhibit 10.3 to Sterling Construction Company, Inc.'s Current Report on Form 8-K, Amendment No. 1 filed on November 21, 2007 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.7#   | Employment Agreement dated as of July 19, 2007 between Sterling Construction Company, Inc. and Patrick T. Manning (incorporated by reference to Exhibit 10.1 to Sterling Construction Company, Inc.'s Current Report on Form 8-K filed on January 17, 2008 (SEC File No. 1-31993))                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.8#   | Employment Agreement dated as of July 19, 2007 between Sterling Construction Company, Inc. and Joseph P. Harper, Sr. (incorporated by reference to Exhibit 10.2 to Sterling Construction Company, Inc.'s Current Report on Form 8-K filed on January 17, 2008 (SEC File No. 1-31993))                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.09#  | Employment Agreement dated as of July 16, 2007 between Sterling Construction Company, Inc. and James H. Allen, Jr. (incorporated by reference to Exhibit 10.3 to Sterling Construction Company, Inc.'s Current Report on Form 8-K filed on January 17, 2008 (SEC File No. 1-31993))                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.10#  | Option Agreement dated August 7, 2007 between Sterling Construction Company, Inc. and James H. Allen, Jr. (incorporated by reference to Exhibit 10.4 to Sterling Construction Company, Inc.'s Current Report on Form 8-K filed on January 17, 2008 (SEC File No. 1-31993))                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.11#  | Employment Agreement dated as of March 17, 2006 between Sterling Construction Company, Inc. and Roger M. Barzun (incorporated by reference to Exhibit 10.11 to Sterling Construction Company, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2009, filed on March 15, 2010 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.12#  | Employment Agreement dated as of December 3, 2009 between Ralph L. Wadsworth and Kip L. Wadsworth Barzun (incorporated by reference to Exhibit 10.11 to Sterling Construction Company, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2009, filed on March 15, 2010 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.13#* | Employment Agreement dated as of July 19, 2007 between Sterling Construction Company, Inc. and Anthony F. Colombo.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.14#* | Employment Agreement dated as of July 19, 2007 between Sterling Construction Company, Inc. and Joseph P. Harper, Jr.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.15#* | Employment Agreement dated as of July 19, 2007 between Sterling Construction Company, Inc. and Brian R. Manning.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 21      | Subsidiaries of Sterling Construction Company, Inc.:Name                                                                                       State of Incorporation or OrganizationTexas Sterling Construction Co.                                         DelawareRoad and Highway Builders, LLC                                      NevadaRoad and Highway Builders Inc.                                        NevadaRoad and Highway Builders of California, Inc.                CaliforniaRalph L. Wadsworth Construction Company, LLC         UtahRalph L. Wadsworth Construction Co. LP                       California |
| 23.1*   | Consent of Grant Thornton LLP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 31.1*   | Certification of Patrick T. Manning, Chief Executive Officer of Sterling Construction Company, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 31.2*   | Certification of James H. Allen, Jr., Chief Financial Officer of Sterling Construction Company, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 32.1*   | Certification pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) of Patrick T. Manning, Chief Executive Officer, and James H. Allen, Jr., Chief Financial Officer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

|   | #  Management contract or compensatory plan or arrangement. |
|--------|-----------------------------------------------------------------------|

----

|   | Signatures |
|--------|------------|

| Signature                                                                                                                                                                                                                                                                                                                                                                          | Title                                                                                     | Date           |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|----------------|
| /s/ Patrick T. Manning                                                      Patrick T. Manning       | Chairman of the Board of Directors; Chief Executive Officer (principal executive officer) | March 16, 2011 |
| /s/ Joseph P. Harper, Sr.                                                      Joseph P. Harper, Sr. | President, Treasurer & Chief Operating Officer; Director                              | March 16, 2011 |
| /s/James H. Allen, Jr.                                                      James H. Allen, Jr.      | Chief Financial Officer (principal financial officer and principal accounting officer)    | March 16, 2011 |
| /s/ John D. Abernathy                                                      John D. Abernathy         | Director                                                                                  | March 16, 2011 |
| /s/ Robert A. Eckels                                                      Robert A. Eckels           | Director                                                                                  | March 16, 2011 |
| /s/Maarten D. Hemsley                                                      Maarten D. Hemsley        | Director                                                                                  | March 16, 2011 |
| /s/ Richard O. Schaum                                                      Richard O. Schaum         | Director                                                                                  | March 16, 2011 |
| /s/ Milton L. Scott                                                      Milton L. Scott             | Director                                                                                  | March 16, 2011 |
| /s/ David R. A. Steadman                                                      David R. A. Steadman   | Director                                                                                  | March 16, 2011 |
| /s/ Kip L. Wadsworth                                                      Kip L. Wadsworth           | Director                                                                                  | March 16, 2011 |

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|                                                                        |   | 2010   |    |   | 2009   |   |
|-----------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| ASSETS                                                                      |   |   |    |   |   |   |
| Current assets:                                                             |   |   |    |   |   |   |
| Cash and cash equivalents                                                   |   | $      | 49,441  |   |   | $      | 54,406 |   |
| Short-term investments                                                      |   |   | 35,752  |   |   |   | 39,319 |   |
| Contracts receivable, including retainage                                   |   |   | 70,301  |   |   |   | 80,283 |   |
| Costs and estimated earnings in excess of billings on uncompleted contracts |   |   | 10,058  |   |   |   | 5,973 |   |
| Inventories                                                                 |   |   | 1,479   |   |   |   | 1,229 |   |
| Deferred tax asset, net                                                     |   |   | 82      |   |   |   | 127 |   |
| Receivables from and equity in construction joint ventures                  |   |   | 6,744   |   |   |   | 2,341 |   |
| Deposits and other current assets                                           |   |   | 2,472   |   |   |   | 5,510 |   |
| Total current assets                                                        |   |   | 176,329 |   |   |   | 189,188 |   |
| Property and equipment, net                                                 |   |   | 74,681  |   |   |   | 80,282 |   |
| Goodwill                                                                    |   |   | 114,745 |   |   |   | 114,745 |   |
| Other assets, net                                                           |   |   | 1,376   |   |   |   | 1,526 |   |
| Total assets                                                                |   | $      | 367,131 |   |   | $      | 385,741 |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                  |   |   |    |   |   |   |   |   |
| Current liabilities:                                                        |   |   |    |   |   |   |   |   |
| Accounts payable                                                            |   | $      | 35,432  |   |   | $      | 32,619 |   |
| Billings in excess of costs and estimated earnings on uncompleted contracts |   |   | 17,807  |   |   |   | 31,132 |   |
| Current maturities of long-term debt                                        |   |   | 73      |   |   |   | 73 |   |
| Income taxes payable                                                        |   |   | 1,493   |   |   |   | 351 |   |
| Accrued compensation                                                        |   |   | 6,920   |   |   |   | 4,311 |   |
| Other accrued expenses                                                      |   |   | 7,326   |   |   |   | 6,824 |   |
| Total current liabilities                                                   |   |   | 69,051  |   |   |   | 75,310 |   |
| Long-term liabilities:                                                      |   |   |    |   |   |   |   |   |
| Long-term debt, net of current maturities                                   |   |   | 336     |   |   |   | 40,409 |   |
| Deferred tax liability, net                                                 |   |   | 18,591  |   |   |   | 15,369 |   |
| Total long-term liabilities                                                 |   |   | 18,927  |   |   |   | 55,778 |   |
|                                                                        |   |   |    |   |   |   |   |   |
| Commitments and contingencies                                               |   |   |    |   |   |   |   |   |
|                                                                        |   |   |    |   |   |   |   |   |
| Noncontrolling owners' interests in subsidiaries and joint ventures         |   |   | 28,724  |   |   |   | 23,887 |   |
|                                                                        |   |   |    |   |   |   |   |   |
| Stockholders’ equity:                                                 |   |   |    |   |   |   |   |   |
| Preferred stock, par value $0.01 per share; authorized                      |   |   |    |   |   |   |   |   |
| 1,000,000 shares, none issued                                               |   |   | --      |   |   |   | -- |   |
| Common stock, par value $0.01 per share; authorized                         |   |   |    |   |   |   |   |   |
| 19,000,000 shares, 16,468,369 and 16,081,878 shares issued             |   |   | 164     |   |   |   | 160 |   |
| Treasury stock, 3,147 shares of common stock at no cost                     |   |   | --      |   |   |   | -- |   |
| Additional paid in capital                                                  |   |   | 198,849 |   |   |   | 197,898 |   |
| Retained earnings                                                           |   |   | 51,553  |   |   |   | 32,466 |   |
| Accumulated other comprehensive income (loss)                               |   |   | (137    | )      |   |   | 242 |   |
| Total Sterling common stockholders’ equity                            |   |   | 250,429 |   |   |   | 230,766 |   |
| Total liabilities and stockholders’ equity                            |   | $      | 367,131 |   |   | $      | 385,741 |   |

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|                                                                                                    |   | 2010    |             |   | 2009   |    |             | 2008   |   |
|---------------------------------------------------------------------------------------------------------|--------|---------|------------------|--------|--------|---------|------------------|--------|--------|
| Revenues                                                                                                |   | $       | 459,893          |   |   | $       | 390,847          |   |   | $ | 415,074 |   |
| Cost of revenues                                                                                        |   |    | 397,188          |   |   |    | 336,478          |   |   |   | 373,102 |   |
| Gross profit                                                                                            |   |    | 62,705           |   |   |    | 54,369           |   |   |   | 41,972 |   |
| General and administrative expenses                                                                     |   |    | (24,895          | )      |   |    | (14,971          | )      |   |   | (13,763 | ) |
| Direct costs of acquisition                                                                             |   |    | --               |   |   |    | (1,211           | )      |   |   | -- |   |
| Provision for loss on lawsuit                                                                           |   |    | --               |   |   |    | (1,000           | )      |   |   | -- |   |
| Other income (expense)                                                                                  |   |    | (1,900           | )      |   |    | (249             | )      |   |   | (81 | ) |
| Operating income                                                                                        |   |    | 35,910           |   |   |    | 36,938           |   |   |   | 28,128 |   |
| Gain (loss) on sale of securities                                                                       |   |    | (38              | )      |   |    | 519              |   |   |   | -- |   |
| Interest income                                                                                         |   |    | 1,809            |   |   |    | 572              |   |   |   | 1,070 |   |
| Interest expense                                                                                        |   |    | (1,187           | )      |   |    | (234             | )      |   |   | (199 | ) |
| Income before income taxes and earnings attributable to noncontrolling interests                        |   |    | 36,494           |   |   |    | 37,795           |   |   |   | 28,999 |   |
| Income tax expense:                                                                                     |   |    |             |   |   |    |             |   |   |   |   |   |
| Current                                                                                                 |   |    | (6,410           | )      |   |    | (7,785           | )      |   |   | (1,087 | ) |
| Deferred                                                                                                |   |    | (3,860           | )      |   |    | (4,482           | )      |   |   | (8,938 | ) |
| Total income tax expense                                                                                |   |    | (10,270          | )      |   |    | (12,267          | )      |   |   | (10,025 | ) |
| Net income                                                                                              |   |    | 26,224           |   |   |    | 25,528           |   |   |   | 18,974 |   |
| Noncontrolling owners’ interests in earnings of subsidiaries and joint ventures                   |   |    | (7,137           | )      |   |    | (1,824           | )      |   |   | (908 | ) |
| Net income attributable to Sterling common stockholders                                            |   | $       | 19,087           |   |   | $       | 23,704           |   |   | $ | 18,066 |   |
| Net income per share attributable to Sterling common stockholders                                       |   |    |             |   |   |    |             |   |   |   |   |   |
|      Basic                                                                          |   |  $ | 1.15        |   |   |  $ | 1.77        |   |   |  $ | 1.38  |   |
| Diluted                                                                                                 |   |  $ | 1.13        |   |   |  $ | 1.71        |   |   |  $ | 1.32  |   |
| Weighted average number of common shares outstanding used in computing earnings per share amounts: |   |    |             |   |   |    |             |   |   |   |   |   |
| Basic                                                                                                   |   |    | 16,194,708  |   |   |    | 13,358,903  |   |   |   | 13,119,987  |   |
| Diluted                                                                                                 |   |    | 16,563,169  |   |   |    | 13,855,709  |   |   |   | 13,702,488  |   |

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|                                                                 |   |  Common Stock |         |   | Treasury Stock  |   | Additional paid in Capital  |   | Retained earnings (deficit)  |   | Accumulated other comprehensive income (loss)  |   | Total  |
|----------------------------------------------------------------------|--------|--------------------|--------------|--------|----------------------|--------|---------------------------------------|--------|-----------------------------------|--------|----------------------------------------------------------|--------|-------------|
|                                                                 |   |               | Shares  |   |                 |   | Amount                           |   |                              |   | Shares                                              |   |        |   | Amount  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2007                                         |   |               | 13,007       |   |                 | $      | 130                                   |   |                              |   | --                                                       |   |        | $ | -- |   |   | $ | 147,786 |   |   | $ | (9,304 | ) |   | $ | -- |   |   | $ | 138,612 |   |
| Net income  attributable to Sterling common stockholders   |   |               |         |   |                 |   |                                  |   |                              |   |                                                     |   |        |   |   |   |   |   |   |   |   |   | 18,066 |   |   |   |   |   |   |   | 18,066 |   |
| Stock issued upon option and warrant exercises                       |   |               | 154          |   |                 |   | 1                                     |   |                              |   |                                                     |   |        |   |   |   |   |   | 237 |   |   |   |   |   |   |   |   |   |   |   | 238 |   |
| Stock based compensation expense                                     |   |               |         |   |                 |   |                                  |   |                              |   |                                                     |   |        |   |   |   |   |   | 210 |   |   |   |   |   |   |   |   |   |   |   | 210 |   |
| Issuance and amortization of restricted stock                        |   |               | 24           |   |                 |   | --                                    |   |                              |   |                                                     |   |        |   |   |   |   |   | 307 |   |   |   |   |   |   |   |   |   |   |   | 307 |   |
| Excess tax benefits from exercise of stock options                   |   |               |         |   |                 |   |                                  |   |                              |   |                                                     |   |        |   |   |   |   |   | 1,218 |   |   |   |   |   |   |   |   |   |   |   | 1,218 |   |
| Revaluation of noncontrolling interest put/call liability            |   |               |         |   |                 |   |                                  |   |                              |   |                                                     |   |        |   |   |   |   |   | 607 |   |   |   |   |   |   |   |   |   |   |   | 607 |   |
| Expenditures related to equity offering                              |   |               |         |   |                 |   |                                  |   |                              |   |                                                     |   |        |   |   |   |   |   | (142 | ) |   |   |   |   |   |   |   |   |   |   | (142 | ) |
| Balance at December 31, 2008                                         |   |               | 13,185       |   |                 |   | 131                                   |   |                              |   | --                                                       |   |        |   | -- |   |   |   | 150,223 |   |   |   | 8,762 |   |   |   | -- |   |   |   | 159,116 |   |
| Net income attributable to Sterling common stockholders              |   |               |         |   |                 |   |                                  |   |                              |   |                                                     |   |        |   |   |   |   |   |   |   |   |   | 23,704 |   |   |   |   |   |   |   | 23,704 |   |
| Unrealized holding gain on available-for-sale securities, net of tax |   |               |         |   |                 |   |                                  |   |                              |   |                                                     |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   | 242 |   |   |   | 242 |   |
| Stock issued upon option and warrant exercises                       |   |               | 109          |   |                 |   | 1                                     |   |                              |   |                                                     |   |        |   |   |   |   |   | 307 |   |   |   |   |   |   |   |   |   |   |   | 308 |   |
| Stock based compensation expense                                     |   |               |         |   |                 |   |                                  |   |                              |   |                                                     |   |        |   |   |   |   |   | 181 |   |   |   |   |   |   |   |   |   |   |   | 181 |   |
| Issuance and amortization of restricted stock                        |   |               | 28           |   |                 |   | --                                    |   |                              |   |                                                     |   |        |   |   |   |   |   | 405 |   |   |   |   |   |   |   |   |   |   |   | 405 |   |
| Stock issued in equity offering, net of expenses                     |   |               | 2,760        |   |                 |   | 28                                    |   |                              |   |                                                     |   |        |   |   |   |   |   | 46,782 |   |   |   |   |   |   |   |   |   |   |   | 46,810 |   |
| Balance at December 31, 2009                                         |   |               | 16,082       |   |                 |   | 160                                   |   |                              |   | --                                                       |   |        |   | -- |   |   |   | 197,898 |   |   |   | 32,466 |   |   |   | 242 |   |   |   | 230,766 |   |
| Net income attributable to Sterling common stockholders              |   |               |         |   |                 |   |                                  |   |                              |   |                                                     |   |        |   |   |   |   |   |   |   |   |   | 19,087 |   |   |   |   |   |   |   | 19,087 |   |
| Unrealized holding loss on available-for-sale securities, net of tax |   |               |         |   |                 |   |                                  |   |                              |   |                                                     |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   | (379 | ) |   |   | (379 | ) |
| Stock issued upon option and warrant exercises                       |   |               | 350          |   |                 |   | 3                                     |   |                              |   |                                                     |   |        |   |   |   |   |   | 1,048 |   |   |   |   |   |   |   |   |   |   |   | 1,051 |   |
| Stock based compensation expense                                     |   |               |         |   |                 |   |                                  |   |                              |   |                                                     |   |        |   |   |   |   |   | 121 |   |   |   |   |   |   |   |   |   |   |   | 121 |   |
| Issuance and amortization (surrender) of restricted stock            |   |               | 36           |   |                 |   | 1                                     |   |                              |   | (3                                                       | )      |        |   | -- |   |   |   | 473 |   |   |   |   |   |   |   |   |   |   |   | 474 |   |
| Revaluation of noncontrolling interest put/call liability            |   |               |         |   |                 |   |                                  |   |                              |   |                                                     |   |        |   |   |   |   |   | (691 | ) |   |   |   |   |   |   |   |   |   |   | (691 | ) |
| Balance at December 31, 2010                                         |   |               | 16,468       |   |                 | $      | 164                                   |   |                              |   | (3                                                       | )      |        | $ | -- |   |   | $ | 198,849 |   |   | $ | 51,553 |   |   | $ | (137 | ) |   | $ | 250,429 |   |

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|                                                                                   |   | For the year ended December 31, |   |
|----------------------------------------------------------------------------------------|--------|---------------------------------|--------|
|                                                                                   |   | 2010                            |   |   | 2009 |   |   | 2008 |   |
| Net income attributable to Sterling common stockholders                                |   | $                               | 19,087 |   |   | $ | 23,704 |   |   | $ | 18,066 |   |
| Add/deduct other comprehensive income, net of tax                                      |   |                            |   |   |   |   |   |   |   |   |   |   |
| Realized (gain) loss from available-for-sale securities                                |   |                            | 25     |   |   |   | (337 | ) |   |   | -- |   |
| Net unrealized/realized holding gain (loss) on available-available-for-sale securities |   |                            | (404   | ) |   |   | 579 |   |   |   | -- |   |
| Comprehensive net income attributable to Sterling common stockholders                  |   | $                               | 18,708 |   |   | $ | 23,946 |   |   | $ | 18,066 |   |

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|                                                                                                   |   | 2010   |     |   | 2009   |   |     | 2008   |   |
|--------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
| Net income attributable to Sterling common stockholders                                                |   | $      | 19,087   |   |   | $      | 23,704   |   |   | $ | 18,066 |   |
| Plus: Noncontrolling  owners’ interests in earnings of subsidiaries and joint ventures |   |   | 7,137    |   |   |   | 1,824    |   |   |   | 908 |   |
| Net income                                                                                             |   |   | 26,224   |   |   |   | 25,528   |   |   |   | 18,974 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:                      |   |   |     |   |   |   |     |   |   |   |   |   |
| Depreciation and amortization                                                                          |   |   | 15,770   |   |   |   | 13,730   |   |   |   | 13,168 |   |
| (Gain) loss on disposal of property and equipment                                                      |   |   | 1,900    |   |   |   | 249      |   |   |   | 81 |   |
| Deferred tax expense                                                                                   |   |   | 3,860    |   |   |   | 4,482    |   |   |   | 8,938 |   |
| Stock based compensation expense                                                                       |   |   | 595      |   |   |   | 586      |   |   |   | 517 |   |
| Excess tax benefits from exercise of stock options                                                     |   |   | --       |   |   |   | --       |   |   |   | (1,218 | ) |
| Interest expense accreted on noncontrolling interest                                                   |   |   | 1,169    |   |   |   | 206      |   |   |   | 199 |   |
| Loss (gain) on sale of securities                                                                      |   |   | 38       |   |   |   | (519     | )      |   |   | -- |   |
| Other changes in operating assets and liabilities:                                                     |   |   |     |   |   |   |     |   |   |   |   |   |
| (Increase) decrease  in contracts receivable                                                 |   |   | 9,982    |   |   |   | 15,138   |   |   |   | (6,188 | ) |
| (Increase) decrease in costs and estimated earnings in excess of billings on uncompleted contracts     |   |   | (4,085   | )      |   |   | 3,778    |   |   |   | (3,761 | ) |
| (Increase) decrease in prepaid expenses and other assets                                               |   |   | 2,284    |   |   |   | (1,582   | )      |   |   | (1,945 | ) |
| (Increase) decrease in receivables from and equity in construction joint ventures                      |   |   | (4,403   | )      |   |   | (13      | )      |   |   | -- |   |
| Increase (decrease) in trade payables                                                                  |   |   | 2,316    |   |   |   | (11,185  | )      |   |   | (1,079 | ) |
| Increase (decrease) in billings in excess of costs and estimated earnings on uncompleted contracts     |   |   | (13,325  | )      |   |   | (3,571   | )      |   |   | (2,222 | ) |
| Increase (decrease) in accrued compensation and other liabilities                                      |   |   | 4,748    |   |   |   | 519      |   |   |   | 1,257 |   |
| Net cash provided by operating activities                                                              |   |   | 47,073   |   |   |   | 47,346   |   |   |   | 26,721 |   |
| Cash flows from investing activities:                                                                  |   |   |     |   |   |   |     |   |   |   |   |   |
| Cash paid for business combinations, net of cash acquired                                              |   |   | --       |   |   |   | (60,490  | )      |   |   | -- |   |
| Additions to property and equipment                                                                    |   |   | (13,409  | )      |   |   | (5,277   | )      |   |   | (19,896 | ) |
| Proceeds from sale of property and equipment                                                           |   |   | 1,607    |   |   |   | 435      |   |   |   | 1,298 |   |
| (Issuance) payments on note receivables                                                                |   |   | --       |   |   |   | (350     | )      |   |   | 204 |   |
| Purchases of short-term securities, available for sale                                                 |   |   | (137,547 | )      |   |   | (71,386  | )      |   |   | (24,325 | ) |
| Sales of short-term securities, available for sale                                                     |   |   | 140,493  |   |   |   | 57,338   |   |   |   | -- |   |
| Net cash used in investing activities                                                                  |   |   | (8,856   | )      |   |   | (79,730  | )      |   |   | (42,719 | ) |
| Cash flows from financing activities:                                                                  |   |   |     |   |   |   |     |   |   |   |   |   |
| Cumulative daily drawdowns – Credit Facility                                                     |   |   | 57,700   |   |   |   | 188,000  |   |   |   | 235,000 |   |
| Cumulative daily repayments – Credit Facility                                                    |   |   | (97,700  | )      |   |   | (203,000 | )      |   |   | (245,000 | ) |
| Repayments under long-term obligations                                                                 |   |   | (73      | )      |   |   | (74      | )      |   |   | (98 | ) |
| Increase in deferred loan costs                                                                        |   |   | --       |   |   |   | (151     | )      |   |   | -- |   |
| Issuance of common stock pursuant to warrants and options exercised                                    |   |   | 1,051    |   |   |   | 308      |   |   |   | 238 |   |
| Utilization of excess tax benefits from exercise of stock options                                      |   |   | --       |   |   |   | --       |   |   |   | 1,218 |   |
| Distributions to noncontrolling interest owners                                                        |   |   | (4,160   | )      |   |   | (408     | )      |   |   | (562 | ) |
| Net proceeds from sale of common stock                                                                 |   |   | --       |   |   |   | 46,810   |   |   |   | (142 | ) |
| Net cash provided by (used in) financing activities                                                    |   |   | (43,182  | )      |   |   | 31,485   |   |   |   | (9,346 | ) |
| Net increase (decrease) in cash and cash equivalents                                                   |   |   | (4,965   | )      |   |   | (899     | )      |   |   | (25,344 | ) |
| Cash and cash equivalents at beginning of period                                                       |   |   | 54,406   |   |   |   | 55,305   |   |   |   | 80,649 |   |
| Cash and cash equivalents at end of period                                                             |   | $      | 49,441   |   |   | $      | 54,406   |   |   | $ | 55,305 |   |
|                                                                                                   |   |   |     |   |   |   |     |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                                                     |   |   |     |   |   |   |     |   |   |   |   |   |
| Cash paid during the period for interest                                                               |   | $      | 44       |   |   | $      |  31 |   |   | $ |  167 |   |
| Cash paid during the period for income taxes                                                           |   | $      | 3,740    |   |   | $      | 7,000    |   |   | $ | 3,000 |   |

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| ·   | While our business includes only minimal residential and commercial infrastructure work, the severe fall-off in new projects in those markets has resulted in some residential and commercial infrastructure contractors bidding on smaller public sector transportation and water infrastructure projects, sometimes at bid levels below our break-even pricing, thus increasing competition and creating downward pressure on bid prices in our markets. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Traditional competitors on larger transportation and water infrastructure projects also appear to have been bidding at less than normal margins, sometimes at bid levels below our break-even pricing, in order to replenish their reduced backlogs. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                     |   | December 31, 2010 |   |
|--------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                     |   | Total             |   |   | Level 1 |   |   | Gross Unrealized Gains (pre-tax) |   |   | Gross Unrealized Losses (pre-tax) |   |
| Fixed income mutual funds                                                |   | $                 | 31,992 |   |   | $ | 31,992 |   |   | $ | 2 |   |   | $ | 189 |   |
| Exchange traded funds                                                    |   |              | 3,510  |   |   |   | 3,510 |   |   |   | 13 |   |   |   | 36 |   |
| Total securities available-for-sale                                      |   |              | 35,502 |   |   | $ | 35,502 |   |   | $ | 15 |   |   | $ | 225 |   |
| Certificates of deposit with original maturities between 90 and 365 days |   |              | 250    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total short-term investments                                             |   | $                 | 35,752 |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                     |   | December 31, 2009 |   |
|--------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                     |   | Total             |   |   | Level 1 |   |   | Gross Unrealized Gains (pre-tax) |   |   | Gross Unrealized Losses (pre-tax) |   |
| Fixed income mutual funds                                                |   | $                 | 35,055 |   |   | $ | 35,055 |   |   | $ | 55 |   |   | $ | 1 |   |
| Exchange traded funds                                                    |   |              | 2,494  |   |   |   | 2,494 |   |   |   | 319 |   |   |   | -- |   |
| Total securities available-for-sale                                      |   |              | 37,549 |   |   | $ | 37,549 |   |   | $ | 374 |   |   | $ | 1 |   |
| Certificates of deposit with original maturities between 90 and 365 days |   |              | 1,770  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total short-term investments                                             |   | $                 | 39,319 |   |   |   |   |   |   |   |   |   |   |   |   |   |

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| Buildings                     | 39 years   |
|-------------------------------|------------|
| Construction equipment        | 5-15 years |
| Land improvements             | 5-15 years |
| Office furniture and fixtures | 3-10 years |
| Transportation equipment      | 5 years    |

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| ·   | The nature of the products and services — each of our local offices perform similar construction projects — they build, reconstruct and repair roads, highways, bridges, light and commuter rail and water, waste water and storm drainage systems. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The nature of the production processes — our heavy civil construction services rendered in the construction production process for each of our construction projects performed by each local office is the same — they excavate dirt, remove existing pavement and pipe, lay aggregate or concrete pavement, pipe and rail and build bridges and similar large structures in order to complete our projects. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The type or class of customer for products and services — substantially all of our customers are federal and state departments of transportation, cities, counties, and regional water, rail and toll-road authorities. A substantial portion of the funding for the state departments of transportation to finance the projects we construct is furnished by the federal government. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The methods used to distribute products or provide services — the heavy civil construction services rendered on our projects are performed primarily with our own field work crews (laborers, equipment operators and supervisors) and equipment (backhoes, loaders, dozers, graders, cranes, pug mills, crushers, and concrete and asphalt plants). |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The nature of the regulatory environment — we perform substantially all of our projects for federal, state and municipal governmental agencies, and all of the projects that we perform are subject to substantially similar regulation under U.S. and state department of transportation rules, including prevailing wage and hour laws; codes established by the federal government and municipalities regarding water and waste water systems installation; and laws and regulations relating to workplace safety and worker health of the U.S. Occupational Safety and Health Administration and to the employment of immigrants of the U.S. Department of Homeland Security. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                |   | 2010   |    |   | 2009   |   |
|-------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Total combined:                                                                     |   |   |    |   |   |   |
| Current assets                                                                      |   | $      | 79,588  |   |   | $      | 10,328 |   |
| Less current liabilities                                                            |   |   | (61,629 | )      |   |   | (964 | ) |
| Net assets                                                                          |   | $      | 17,959  |   |   | $      | 9,364 |   |
|                                                                                |   |   |    |   |   |   |   |   |
| Revenues                                                                            |   | $      | 302,289 |   |   | $      | -- |   |
| Income before tax                                                                   |   | $      | 24,573  |   |   | $      | -- |   |
| Backlog                                                                             |   | $      | 750,398 |   |   | $      | 1,100,235 |   |
|                                                                                |   |   |    |   |   |   |   |   |
| Sterling's noncontrolling interest:                                                 |   |   |    |   |   |   |   |   |
| Share of revenues                                                                   |   | $      | 37,684  |   |   | $      | -- |   |
| Share of income before tax                                                          |   | $      | 3,018   |   |   | $      | -- |   |
| Backlog                                                                             |   | $      | 93,931  |   |   | $      | 137,559 |   |
|                                                                                |   |   |    |   |   |   |   |   |
| Sterling's receivables from and equity in net assets of construction joint ventures |   | $      | 6,744   |   |   | $      | 2,341 |   |

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|                                                                                                          |   | Years Ended December 31, |
|---------------------------------------------------------------------------------------------------------------|--------|--------------------------|
|                                                                                                          |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
| Numerator:                                                                                                    |   |                     |   |   |   |   |   |   |   |
| Net income attributable to Sterling common stockholders                                                       |   | $                        | 19,087 |   |   | $ | 23,704 |   |   | $ | 18,066 |   |
| Revaluation of noncontrolling interest put/call liability reflected in additional paid in capital, net of tax |   |                     | (449 | ) |   |   | -- |   |   |   | -- |   |
|                                                                                                          |   | $                        | 18,638 |   |   | $ | 23,704 |   |   | $ | 18,066 |   |
|                                                                                                          |   |                     |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                                  |   |                     |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding — basic                                                      |   |                     | 16,195 |   |   |   | 13,359 |   |   |   | 13,120 |   |
| Shares for dilutive stock options and warrants                                                                |   |                     | 368 |   |   |   | 497 |   |   |   | 582 |   |
| Weighted average common shares outstanding andassumed conversions — diluted                             |   |                     | 16,563 |   |   |   | 13,856 |   |   |   | 13,702 |   |
|                                                                                                          |   |                     |   |   |   |   |   |   |   |   |   |   |
| Basic net income per share attributable to Sterling common stockholders                                       |   | $                        | 1.15 |   |   | $ | 1.77 |   |   | $ | 1.38 |   |
|                                                                                                          |   |                     |   |   |   |   |   |   |   |   |   |   |
| Diluted net income per share attributable to Sterling common stockholders                                     |   | $                        | 1.13 |   |   | $ | 1.71 |   |   | $ | 1.32 |   |

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|                          |   | As of December 31, |    |
|-------------------------------|--------|--------------------|---------|
|                          |   | 2010               |    |   | 2009 |   |
| Construction equipment        |   | $                  | 109,432 |   |   | $ | 105,085 |   |
| Transportation equipment      |   |               | 14,915  |   |   |   | 13,472 |   |
| Buildings                     |   |               | 4,673   |   |   |   | 4,699 |   |
| Office equipment              |   |               | 870     |   |   |   | 892 |   |
| Construction in progress      |   |               | 870     |   |   |   | 471 |   |
| Land                          |   |               | 2,916   |   |   |   | 2,916 |   |
| Water rights                  |   |               | 200     |   |   |   | 200 |   |
|                          |   |               | 133,876 |   |   |   | 127,735 |   |
| Less accumulated depreciation |   |               | (59,195 | ) |   |   | (47,453 | ) |
|                          |   | $                  | 74,681  |   |   | $ | 80,282 |   |

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|                                      |   | As of December 31, |   |
|-------------------------------------------|--------|--------------------|--------|
|                                      |   | 2010               |   |   | 2009 |   |
|                                      |   |               |   |   |   |   |
| Credit Facility, due October 2012         |   | $                  | --     |   |   | $ | 40,000 |   |
| Mortgage due monthly through June 2016    |   |               | 409    |   |   |   | 482 |   |
|                                      |   |               | 409    |   |   |   | 40,482 |   |
| Less current maturities of long-term debt |   |               | (73    | ) |   |   | (73 | ) |
| Total long-term debt                      |   | $                  | 336    |   |   | $ | 40,409 |   |

| ·   | Make distributions and dividends; |
|--------------------|-----------------------------------|

| ·   | Incur liens and encumbrances; |
|--------------------|-------------------------------|

| ·   | Incur further indebtedness; |
|--------------------|-----------------------------|

| ·   | Guarantee obligations; |
|--------------------|------------------------|

| ·   | Dispose of a material portion of assets or merge with a third party; |
|--------------------|----------------------------------------------------------------------|

| ·   | Make acquisitions; |
|--------------------|--------------------|

| ·   | Incur losses for two consecutive quarters; |
|--------------------|--------------------------------------------|

| ·   | Make investments in securities |
|--------------------|--------------------------------|

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| Years Ending December 31,: |   |   |   |
|----------------------------|--------|--------|--------|
| 2011                       |   | $      | 73     |   |
| 2012                       |   |   | 73     |   |
| 2013                       |   |   | 73     |   |
| 2014                       |   |   | 73     |   |
| 2015                       |   |   | 73     |   |
| Thereafter                 |   |   | 44     |   |
|                       |   | $      | 409    |   |

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|                                                                 |   | As of December 31, |   |
|----------------------------------------------------------------------|--------|--------------------|--------|
|                                                                 |   | 2010               |   |   | 2009 |   |
|                                                                 |   | Current            |   |   | Long Term |   |   | Current |   |   | Long Term |   |
| Assets related to:                                                   |   |               |   |   |   |   |   |   |   |   |   |   |
|      Accrued compensation and other         |   | $                  | 82     |   |   | $ | -- |   |   | $ | 127 |   |   | $ | -- |   |
|                                                                 |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities related to:                                              |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Amortization of goodwill               |   |               | --     |   |   |   | (4,473 | ) |   |   | -- |   |   |   | (2,361 | ) |
|      Depreciation of property and equipment |   |               | --     |   |   |   | (15,068 | ) |   |   | -- |   |   |   | (13,163 | ) |
|      Accreted interest on put               |   |               | --     |   |   |   | 551 |   |   |   |   |   |   |   | 142 |   |
|      Contingency loss on lawsuit            |   |               | --     |   |   |   | 321 |   |   |   |   |   |   |   | 321 |   |
|      Other                                  |   |               | --     |   |   |   | 78 |   |   |   | --- |   |   |   | (308 | ) |
| Net asset/liability                                                  |   | $                  | 82     |   |   | $ | (18,591 | ) |   | $ | 127 |   |   | $ | (15,369 | ) |

|                                                                                                            |   | Years Ended December 31, |    |
|-----------------------------------------------------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                                                            |   | 2010                     |    |   | 2009 |   |   | 2008 |   |
|                                                                                                            |   | Amount                   |    |   | % |   |   | Amount |   |   | % |   |   | Amount |   |   | % |   |
| Tax expense at the U.S. federal statutory rate                                                             |   | $                        | 12,773  |   |   |   | 35.0 | % |   | $ | 13,228 |   |   |   | 35.0   | % |   | $ | 10,149 |   |   |   | 35.0 | % |
| State franchise and income tax based on income, net of refunds and federal tax benefits                         |   |                     | 879     |   |   |   | 2.4 |   |   |   | 233 |   |   |   | 0.6 |   |   |   | 195 |   |   |   | 0.7 |   |
| Taxes on subsidiaries’ and joint ventures’ earnings attributable to noncontrolling interests owners |   |                     | (2,498  | ) |   |   | (6.8 | ) |   |   | (638 | ) |   |   | (1.7 | ) |   |   | (319 | ) |   |   | (1.1 | ) |
| Tax benefits of Domestic Production Activities Deduction                                                        |   |                     | (500    | ) |   |   | (1.4 | ) |   |   | (563 | ) |   |   | (1.5 | ) |   |   | -- |   |   |   | -- |   |
| Non-taxable interest income                                                                                     |   |                     | (494    | ) |   |   | (1.4 | ) |   |   | (23 | ) |   |   | -- |   |   |   | (35 | ) |   |   | -- |   |
| Other permanent differences                                                                                     |   |                     | 110     |   |   |   | 0.3 |   |   |   | 30 |   |   |   | 0.1 |   |   |   | 35 |   |   |   | -- |   |
| Income tax expense                                                                                              |   | $                        | 10, 270 |   |   |   | 28.1 | % |   | $ | 12,267 |   |   |   | 32.5 | % |   | $ | 10,025 |   |   |   | 34.6 | % |

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|                                                                                  |   | As of December 31, |     |
|---------------------------------------------------------------------------------------|--------|--------------------|----------|
|                                                                                  |   | 2010               |     |   | 2009 |   |
| Costs incurred and estimated earnings on uncompleted contracts                   |   | $                  | 855,611  |   |   | $ | 705,566 |   |
| Billings on uncompleted contracts                                                     |   |               | (863,360 | ) |   |   | (730,725 | ) |
| Excess of billings over costs incurred andestimated earnings on uncompleted contracts |   | $                  | (7,749   | ) |   | $ | (25,159 | ) |

|                                                                                   |   | As of December 31, |    |
|----------------------------------------------------------------------------------------|--------|--------------------|---------|
|                                                                                   |   | 2010               |    |   | 2009 |   |
| Costs and estimated earnings in excess of billings on uncompleted contracts            |   | $                  | 10,058  |   |   | $ | 5,973 |   |
| Billings in excess of costs and estimated earningson uncompleted contracts             |   |               | (17,807 | ) |   |   | (31,132 | ) |
| Excess of billings over costs incurred and estimated earnings on uncompleted contracts |   | $                  | (7,749  | ) |   | $ | (25,159 | ) |

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|                                                                  |   | Years Ended December 31, |    |
|-----------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                  |   | 2010                     |    |   | 2009 |   |   | 2008 |   |
| Shares awarded to each non-employee director                          |   |                     | 3,147   |   |   |   | 2,800 |   |   |   | 2,564 |   |
| Total shares awarded                                                  |   |                     | 25,176  |   |   |   | 19,600 |   |   |   | 17,948 |   |
| Grant-date market price per share                                     |   | $                        | 15.89   |   |   | $ | 17.86 |   |   | $ | 19.50 |   |
| Total compensation cost attributable to shares awarded                |   | $                        | 400,000 |   |   | $ | 350,000 |   |   | $ | 350,000 |   |
| Compensation cost recognized related to current and prior year awards |   | $                        | 283,333 |   |   | $ | 233,000 |   |   | $ | 129,000 |   |

|                             |   | 2001 Plan |     |   | 1994 Non-Employee Director Plan |   |   | 1994 Omnibus Plan |   |
|----------------------------------|--------|-----------|----------|--------|---------------------------------|--------|--------|-------------------|--------|
|                             |   | Shares    |     |   | Weighted Average Exercise Price |   |   | Shares            |   |   | Weighted Average Exercise Price |   |   | Shares |   |   | Weighted Average Exercise Price |   |
| Outstanding at January 1, 2008   |   |      | 457,140  |   |                            | $      | 9.06   |              |   |   | 10,166 |   |   | $ | 0.93 |   |   |   | 76,190 |   |   | $ | 0.88 |   |
| Exercised                        |   |      | (45,940  | )      |                            | $      | 2.81   |              |   |   | (10,166 | ) |   | $ | 0.93 |   |   |   | (76,190 | ) |   | $ | 0.88 |   |
| Expired/forfeited                |   |      | (200     | )      |                            | $      | 25.21  |              |   |   | -- |   |   |   |   |   |   |   | -- |   |   |   |   |   |
| Outstanding at December 31, 2008 |   |      | 411,000  |   |                            | $      | 9.75   |              |   |   | -- |   |   |   |   |   |   |   | -- |   |   |   |   |   |
| Exercised                        |   |      | (89,640  | )      |                            | $      | 3.10   |              |   |   | -- |   |   |   |   |   |   |   | -- |   |   |   |   |   |
| Expired/forfeited                |   |      | (1,620   | )      |                            | $      | 2.65   |              |   |   | -- |   |   |   |   |   |   |   | -- |   |   |   |   |   |
| Outstanding at December 31, 2009 |   |      | 319,740  |   |                            | $      | 11.65  |              |   |   | -- |   |   |   |   |   |   |   | -- |   |   |   |   |   |
| Exercised                        |   |      | (111,620 | )      |                            | $      | 6.21   |              |   |   | -- |   |   |   |   |   |   |   | -- |   |   |   |   |   |
| Expired/forfeited                |   |      | (41,580  | )      |                            | $      | 13.41  |              |   |   | -- |   |   |   |   |   |   |   | -- |   |   |   |   |   |
| Outstanding at December 31, 2010 |   |      | 166,540  |   |                            | $      | 14.85  |              |   |   | -- |   |   |   |   |   |   |   | -- |   |   |   |   |   |

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|   |                              |   | Options Outstanding |   | Options Excercisable                                |   |
|--------|-----------------------------------|--------|---------------------|--------|-----------------------------------------------------|--------|
|   | Range of Exercise Price Per Share |   | Number of Shares    |   | Weighted Average Remaining Contractual Life (years) |   |   | Weighted Average  |   | Number of Shares |   |   | Weighted Average  |   |
| $      | 0.94-$1.50                        |   | 10,200              |   | 0.56                                                |   | $ | 1.50 |   | 10,200 |   | $ | 1.50 |   |
| $      | 1.73-$2.00                        |   | 13,200              |   | 1.56                                                |   | $ | 1.73 |   | 13,200 |   | $ | 1.73 |   |
| $      | 2.75-$3.38                        |   | 48,033              |   | 3.25                                                |   | $ | 3.08 |   | 48,033 |   | $ | 3.09 |   |
| $      | 18.99                             |   | 13,707              |   | 6.61                                                |   | $ | 18.99 |   | 13,707 |   | $ | 18.99 |   |
| $      | 21.60                             |   | 2,800               |   | 1.55                                                |   | $ | 21.60 |   | 2,800 |   | $ | 21.60 |   |
| $      | 24.96                             |   | 62,800              |   | 0.55                                                |   | $ | 24.96 |   | 62,800 |   | $ | 24.96 |   |
| $      | 25.21                             |   | 15,800              |   | 0.69                                                |   | $ | 25.21 |   | 12,720 |   | $ | 25.21 |   |
|   |                              |   | 166,540             |   | 1.94                                                |   | $ | 14.85 |   | 163,460 |   | $ | 14.65 |   |

|                                                        |   | Number of Shares |    |   | Aggregate intrinsic value |   |
|-------------------------------------------------------------|--------|------------------|---------|--------|---------------------------|--------|
| Total outstanding in-the-money options at December 31, 2010 |   |             | 71,433  |   |                      | $      | 745,404 |   |
| Total vested in-the-money options at December 31, 2010      |   |             | 71,433  |   |                      | $      | 745,404 |   |
| Total options exercised during 2010                         |   |             | 111,620 |   |                      | $      | 838,277 |   |

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|                                    |   | Warrants Exercised |    |   |                                 |   |
|-----------------------------------------|--------|--------------------|---------|--------|--------------------------------------|--------|
|                                    |   | Shares             |    |   | Company’s Proceeds of Exercise |   |   | Year-End Warrant Share Balance |   |
| Warrants outstanding on January 1, 2008 |   |               | --      |   |                                 |   | -- |   |   |   | 356,266 |   |
| Warrants exercised in 2008              |   |               | 22,220  |   |                                 | $      | 33,330 |   |   |   | 334,046 |   |
| Warrants exercised in 2009              |   |               | 19,634  |   |                                 | $      | 29,451 |   |   |   | 314,412 |   |
| Warrants exercised in 2010              |   |               | 238,981 |   |                                 | $      | 358,471 |   |   |   | 75,431 |   |

| Years Ending December 31,            |   |   |   |
|--------------------------------------|--------|--------|--------|
| 2011                                 |   | $      | 1,048  |   |
| 2012                                 |   |   | 511    |   |
| 2013                                 |   |   | 473    |   |
| 2014                                 |   |   | 473    |   |
| 2015                                 |   |   | 448    |   |
|     Thereafter        |   |   | 3,572  |   |
| Total future minimum rental payments |   | $      | 6,525  |   |

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|                                                                |   | Years Ended December 31, |    |
|---------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                |   | 2010                     |    |   | 2009 |   |   | 2008 |   |
|                                                                |   | Contract Revenues        |    |   | % of Revenues |   |   | Contract Revenues |   |   | % of Revenues |   |   | Contract Revenues |   |   | % of Revenues |   |
| Texas Department of Transportation (“TXDOT”)            |   | $                        | 95,198  |   |   |   | 20.7 | % |   | $ | 81,599 |   |   |   | 20.9 | % |   | $ | 162,041 |   |   |   | 39.2 | % |
| Utah Department of Transportation (“UDOT”)              |   | $                        | 120,492 |   |   |   | 26.2 | % |   |   | ** |   |   |   | ** |   |   |   | N/A | * |   |   | N/A | * |
| Nevada Department of Transportation (“NDOT”)            |   |                     | **      |   |   |   | ** |   |   |   | 92,137 |   |   |   | 23.6 | % |   |   | 88,159 |   |   |   | 21.3 | % |
| North Texas TollRoad Authority (“NTTA”)                 |   |                     | **      |   |   |   | ** |   |   |   | 52,183 |   |   |   | 13.4 | % |   |   | ** |   |   |   | ** |   |
|   *N/A related to RLW not acquired until December 03,2009 |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Represents less than 10% of revenues                              |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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| Assets acquired and liabilities assumed:                             |   |   |    |
|----------------------------------------------------------------------|--------|--------|---------|
| Current assets, including cash of $3,370                             |   | $      | 43,053  |   |
| Current liabilities                                                  |   |   | (31,953 | ) |
| Working capital acquired                                             |   |   | 11,100  |   |
| Property and equipment                                               |   |   | 11,212  |   |
| Total tangible net assets acquired at fair value                     |   |   | 22,312  |   |
| Goodwill                                                             |   |   | 57,513  |   |
| Total consideration                                                  |   |   | 79,825  |   |
| Fair value of noncontrolling owners' interests in RLW, including Put |   |   | (15,965 | ) |
| Cash paid                                                            |   | $      | 63,860  |   |

|                                                                      |   | 2009 (unaudited) |    |   | 2008 (unaudited) |   |
|---------------------------------------------------------------------------|--------|------------------|---------|--------|------------------|--------|
| Revenues                                                                  |   | $                | 546,747 |   |             | $      | 541,196 |   |
| Net income attributable to Sterling common stockholders                   |   | $                | 43,475  |   |             | $      | 28,054 |   |
| Diluted net income per share attributable to Sterling common stockholders |   | $                | 3.14    |   |             | $      | 2.05 |   |

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| Tangible assets acquired at estimated fair value, including approximately $10,000 of property, plant and equipment |   | $      | 19,334 |   |
|--------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| Current liabilities assumed                                                                                        |   |   | (9,686 | )      |
| Goodwill                                                                                                           |   |   | 44,496 |   |
| Total                                                                                                              |   | $      | 54,144 |   |

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|                                                                             |   | Years Ended December 31, |   |
|----------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                             |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
| Balance, beginning of period                                                     |   | $                        | 23,887 |   |   | $ | 6,300 |   |   | $ | 6,362 |   |
| Fair value of noncontrolling interest, including Put, related to purchase of RLW |   |                     | --     |   |   |   | 15,965 |   |   |   | -- |   |
| Noncontrolling owners' interests in earnings of subsidiaries and joint ventures  |   |                     | 7,137  |   |   |   | 1,824 |   |   |   | 908 |   |
| Accretion of interest on Puts                                                    |   |                     | 1,169  |   |   |   | 206 |   |   |   | 199 |   |
| Change in fair value of Put of RHB                                               |   |                     | 691    |   |   |   | -- |   |   |   | (607 | ) |
| Distributions to noncontrolling interests owners                                 |   |                     | (4,160 | ) |   |   | (408 | ) |   |   | (562 | ) |
| Balance, end of period                                                           |   | $                        | 28,724 |   |   | $ | 23,887 |   |   | $ | 6,300 |   |

|   | • Specific excess reinsurance coverage for medical and prescription drug claims per insured person in excess of $60,000 within a plan year with a maximum lifetime reimbursement of $2,000,000. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • Aggregate reinsurance coverage for medical and prescription drug claims within a plan year with a maximum of $1.0 million in excess of an aggregate deductible of $2.0 million. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                            |   | 2010 Quarters Ended (unaudited)                      |   |   |    |    |
|-------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|--------|---------|---------|
|                                                                                            |   | March 31                                             |   |   | June 30 |    |   | September 30 |   |   | December 31 |   |   | Total |   |
|                                                                                            |   | (Dollar amounts in thousands, except per share data) |   |
| Revenues                                                                                        |   | $                                                    | 86,157 |   |    | $       | 116,865 |   |   | $ | 118,874 |   |   | $ | 137,997 |   |   | $ | 459,893 |   |
| Gross profit                                                                                    |   |                                                 | 8,249  |   |    |    | 12,707 |   |   |   | 12,998 |   |   |   | 28,751 |   |   |   | 62,705 |   |
| Income before income taxes and earnings attributable to noncontrolling interests                |   |                                                 | 3,138  |   |    |    | 8,113 |   |   |   | 6,545 |   |   |   | 18,698 |   |   |   | 36,494 |   |
| Net income attributable to Sterling common stockholders                                         |   |                                                 | 1,552  |   |    |    | 4,667 |   |   |   | 3,496 |   |   |   | 9,372 |   |   |   | 19,087 |   |
| Net income attributable to Sterling common stockholders per share:    Basic |   | $                                                    | 0.10   |   |    | $       | 0.29 |   |   | $ | 0.21 |   |   | $ | 0.55 |   |   | $ | 1.15 |   |
|      Diluted                                                           |   | $                                               | 0.09   |   |    | $  | 0.29 |   |   | $  | 0.21 |   |   | $  | 0.54 |   |   | $  | 1.13 |   |

|                                                                                            |   | 2009 Quarters Ended (unaudited)                      |   |   |    |    |
|-------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|--------|---------|---------|
|                                                                                            |   | March 31                                             |   |   | June 30 |    |   | September 30 |   |   | December 31 |   |   | Total |   |
|                                                                                            |   | (Dollar amounts in thousands, except per share data) |   |
| Revenues                                                                                        |   | $                                                    | 94,866 |   |    | $       | 120,375 |   |   | $ | 103,929 |   |   | $ | 71,677 |   |   | $ | 390,847 |   |
| Gross profit                                                                                    |   |                                                 | 11,811 |   |    |    | 18,579 |   |   |   | 16,542 |   |   |   | 7,437 |   |   |   | 54,369 |   |
| Income before income taxes and earnings attributable to noncontrolling interests                |   |                                                 | 8,785  |   |    |    | 14,791 |   |   |   | 13,041 |   |   |   | 1.178 |   |   |   | 37,795 |   |
| Net income attributable to Sterling common stockholders                                         |   |                                                 | 5,565  |   |    |    | 9,285 |   |   |   | 8,092 |   |   |   | 762 |   |   |   | 23,704 |   |
| Net income attributable to Sterling common stockholders per share:    Basic |   | $                                                    | 0.42   |   |    | $       | 0.70 |   |   | $ | 0.61 |   |   | $ | 0.04 |   |   | $ | 1.77 |   |
|      Diluted                                                           |   | $                                               | 0.41   |   |    | $  | 0.68 |   |   | $  | 0.59 |   |   | $  | 0.03 |   |   | $  | 1.71 |   |

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| Number  | Exhibit Title                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1     | Purchase Agreement by and among Richard H. Buenting, Fisher Sand & Gravel Co., Thomas Fisher and Sterling Construction Company, Inc. dated as of October 31, 2007 (incorporated by reference to Exhibit number 2.1 to Sterling Construction Company, Inc.'s Current Report on Form 8-K, Amendment No. 1 filed on November 21, 2007 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 2.2     | Purchase Agreement, dated as of December 3, 2009, by and among Kip Wadsworth, Ty Wadsworth, Con Wadsworth, Tod Wadsworth and Sterling Construction Company, Inc. (incorporated by reference to Exhibit 2.1 to Sterling Construction Company, Inc.'s Current Report on Form 8 K, filed on December 3, 2009 (SEC File No. 1-31993))                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 3.1     | Certificate of Incorporation of Sterling Construction Company, Inc. (incorporated by reference to Exhibit 3.0 to Sterling Construction Company, Inc.'s Quarterly Report on Form 10-Q, filed on August 10, 2009 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 3.2     | Bylaws of Sterling Construction Company, Inc. as amended through March 13, 2008 (incorporated by reference to Exhibit 3.1 to Sterling Construction Company, Inc.'s Current Report on Form 8-K, filed on March 19, 2008 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 4.1     | Form of Common Stock Certificate of Sterling Construction Company, Inc. (incorporated by reference to Exhibit 4.5 to its Form 8-A, filed on January 11, 2006 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.1#   | Oakhurst Company, Inc. 2001 Stock Incentive Plan (incorporated by reference to Exhibit 10.6 to Sterling Construction Company, Inc.'s Registration Statement on Form S-1, filed on November 17, 2005 (SEC File No. 333-129780)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.2#   | Forms of Stock Option Agreement under the Oakhurst Company, Inc. 2001 Stock Incentive Plan (incorporated by reference to Exhibit 10.51 to Sterling Construction Company, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2004, filed on March 29, 2005 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.3#   | Summary of the Compensation Plan for Non-Employee Directors of Sterling Construction Company, Inc. (incorporated by reference to Exhibit 10.1 to Sterling Construction Company, Inc.'s Quarterly Report on Form 10-Q, filed on August 11, 2008 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.4    | Credit Agreement by and among Sterling Construction Company, Inc., Texas Sterling Construction Co., Oakhurst Management Corporation and Comerica Bank and the other lenders from time to time party thereto, and Comerica Bank as administrative agent for the lenders, dated as of October 31, 2007 (incorporated by reference to Exhibit 10.1 to Sterling Construction Company, Inc.'s Current Report on Form 8-K, Amendment No. 1 filed on November 21, 2007 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.5    | Security Agreement by and among Sterling Construction Company, Inc., Texas Sterling Construction Co., Oakhurst Management Corporation and Comerica Bank as administrative agent for the lenders, dated as of October 31, 2007 (incorporated by reference to Exhibit 10.4 to Sterling Construction Company, Inc.'s Quarterly Report on Form 10-Q, filed on November 9, 2009 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.6    | Joinder Agreement by Road and Highway Builders, LLC and Road and Highway Builders Inc. dated as of October 31, 2007 (incorporated by reference to Exhibit 10.3 to Sterling Construction Company, Inc.'s Current Report on Form 8-K, Amendment No. 1 filed on November 21, 2007 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.7#   | Employment Agreement dated as of July 19, 2007 between Sterling Construction Company, Inc. and Patrick T. Manning (incorporated by reference to Exhibit 10.1 to Sterling Construction Company, Inc.'s Current Report on Form 8-K filed on January 17, 2008 (SEC File No. 1-31993))                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.8#   | Employment Agreement dated as of July 19, 2007 between Sterling Construction Company, Inc. and Joseph P. Harper, Sr. (incorporated by reference to Exhibit 10.2 to Sterling Construction Company, Inc.'s Current Report on Form 8-K filed on January 17, 2008 (SEC File No. 1-31993))                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.09#  | Employment Agreement dated as of July 16, 2007 between Sterling Construction Company, Inc. and James H. Allen, Jr. (incorporated by reference to Exhibit 10.3 to Sterling Construction Company, Inc.'s Current Report on Form 8-K filed on January 17, 2008 (SEC File No. 1-31993))                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.10#  | Option Agreement dated August 7, 2007 between Sterling Construction Company, Inc. and James H. Allen, Jr. (incorporated by reference to Exhibit 10.4 to Sterling Construction Company, Inc.'s Current Report on Form 8-K filed on January 17, 2008 (SEC File No. 1-31993))                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.11#  | Employment Agreement dated as of March 17, 2006 between Sterling Construction Company, Inc. and Roger M. Barzun (incorporated by reference to Exhibit 10.11 to Sterling Construction Company, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2009, filed on March 15, 2010 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.12#  | Employment Agreement dated as of December 3, 2009 between Ralph L. Wadsworth and Kip L. Wadsworth Barzun (incorporated by reference to Exhibit 10.11 to Sterling Construction Company, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2009,   filed on March 15, 2010 (SEC File No. 1-31993)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.13#* | Employment Agreement dated as of July 19, 2007 between Sterling Construction Company, Inc. and Anthony F. Colombo.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.14#* | Employment Agreement dated as of July 19, 2007 between Sterling Construction Company, Inc. and Joseph P. Harper, Jr.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.15#* | Employment Agreement dated as of July 19, 2007 between Sterling Construction Company, Inc. and Brian R. Manning.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 21      | Subsidiaries of Sterling Construction Company, Inc.:Name                                                                                         State of Incorporation or OrganizationTexas Sterling Construction Co.                                           DelawareRoad and Highway Builders, LLC                                        NevadaRoad and Highway Builders Inc.                                          NevadaRoad and Highway Builders of California, Inc.                  CaliforniaRalph L. Wadsworth Construction Company, LLC           UtahRalph L. Wadsworth Construction Co. LP                          California |
| 23.1*   | Consent of Grant Thornton LLP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 31.1*   | Certification of Patrick T. Manning, Chief Executive Officer of Sterling Construction Company, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 31.2*   | Certification of James H. Allen, Jr., Chief Financial Officer of Sterling Construction Company, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 32.1*   | Certification pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) of Patrick T. Manning, Chief Executive Officer, and James H. Allen, Jr., Chief Financial Officer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

|   | #  Management contract or compensatory plan or arrangement. |
|--------|-----------------------------------------------------------------------|

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