<PAGE>
 
                                   CONTRACT


        THIS AGREEMENT made and executed in Four (4) original counterparts this
16th day of October A.D. 1996 between the Utah Department of Transportation,
hereinafter called "Department," first party, and Meadow Valley Contractors,
Inc. hereinafter called "Contractor," second party.

        WITNESSETH, That for and in consideration of payments, hereinafter 
mentioned, to be made by the Department, the Contractor agrees to furnish all 
labor and equipment; to furnish and deliver all materials not specifically 
mentioned as being furnished by the Department and to do and perform all work in
the construction of Roadway Widening, Bridge Replacement and Signalization in 
Davis County, State of Utah, the same being that section of I-15, I-215 to 2600 
South identified as *IM-INH-15-7(193)316 and Pin No. 89 approximately 3.156 
kilometers in length for the approximate sum of Fifteen Million Nine Hundred 
Eighty-Five Thousand One Hundred Fifty-Five and 47/100 Dollars ($15,985,155.47).

        The Contractor further covenants and agrees that all of said work and
labor shall be done and performed in the best and most workmanlike manner and in
strict conformity with the plans, and specifications. The said plans and
specifications and the notice to contractors, instruction to bidders, the
proposal, special provisions and contract bond are hereby made a part of this
agreement as fully and to the same effect as if the same had been set forth at
length herein.

        In consideration of the foregoing premises, the Department agrees to pay
to Contractor in the manner and in the amount provided in the said specification
and proposal. 

        IN WITNESS WHEREOF, the parties hereto have subscribed their names 
through their proper officers thereunto duly authorized as of the day and year 
first above written.


Attest:                                UTAH DEPARTMENT OF TRANSPORTATION

[SIGNATURE APPEARS HERE]
----------------------------------     [SIGNATURE APPEARS HERE]
        Secretary                      ----------------------------------------
                                       Director of Transportation - First Party

Witnesses:

[SIGNATURE APPEARS HERE]
----------------------------------         Meadow Valley Contractors, Inc.
                                       -----------------------------------------
----------------------------------
                                 
Approved as to form                    by [SIGNATURE APPEARS HERE]
                                         ---------------------------------------

by [SIGNATURE APPEARS HERE]                         UTAH AREA MANAGER
  --------------------------------     -----------------------------------------
   Assistant Attorney General                            Title

          CONTRACT RECEIVED AND
             PROCESSED BY
APPROVED   DIVISION OF FINANCE
        --------------------------     -----------------------------------------
           Director of Finance              Utah Contractor License Number


                                       FUNDS AVAILABLE
                                                      --------------------------

                                       [SIGNATURE APPEARS HERE]       10-21-96
                                       -----------------------------------------
                                       Budget Officer                   Date