THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Granite Construction Incorporated (GVA)

4/4/2006 Proxy Information

Mr. Dorey, our President and Chief Executive Officer and a director of Granite, is a non-managing member of a limited liability company, or LLC, in which he holds an 11.32% interest. During 2005, $33,499 in retention was paid to our wholly-owned subsidiary, Granite Construction Company, for work performed for the LLC in 2003. In addition, Granite Construction Company performed extra work along with minor remedial work for the LLC totaling $14,062, which Granite expects to receive in 2006.

Since he retired as our Chief Executive Officer in 2003, David H. Watts, our Chairman of the Board, has continued as an employee in a non-executive capacity and received compensation totaling $405,000 during fiscal year 2005. Mr. Watts received no additional compensation for service as a director of Granite.

David V. Watts, a son of David H. Watts, Chairman of the Board, is Granite’s Director of Information Technology. During fiscal year 2005, David V. Watts was paid a salary of $140,004, and other compensation totaling $45,644 (including a Profit Sharing cash bonus, a restricted stock dividends, a commission and a miscellaneous reimbursement). He also has a home loan from Granite as part of a relocation package. During fiscal year 2005, the largest amount outstanding on the loan was $50,000. At December 31, 2005, the outstanding amount was $50,000.

Director Searle’s son, George G. Searle, is an area manager with Granite’s subsidiary, Granite Construction Company. During fiscal year 2005, he received $140,000 in salary and other compensation totaling $7,627(including a Profit Sharing cash bonus and vehicle fringe benefits).

James B. Dorey, brother of William G. Dorey, President, CEO and a director of Granite, is a Custom Job Estimator for Granite Construction Company. During fiscal year 2005, he received a salary of $86,585 and other compensation totaling $5,373 (including a Profit Sharing cash bonus and vehicle fringe benefits).

4/4/2005 Proxy Information

David V. Watts, a son of David H. Watts, Chairman of the Board, is Granite’s Director of Information Technology. For fiscal year 2004, Mr. Watts was paid a salary of $120,000, a $27,600 bonus and other compensation totaling $24,585 (including Profit Sharing cash bonus, restricted stock dividend and moving reimbursement). He also has a home loan from Granite as part of a relocation package. During fiscal year 2004, the largest amount outstanding on the loan was $62,500. At December 31, 2004, the outstanding amount was $50,000.

Director Searle’s son, George G. Searle, is an area manager with Granite’s subsidiary, Granite Halmar Construction Company, Inc. During fiscal year 2004, he received $140,000 in salary, a $66,469 bonus and a Profit Sharing cash bonus of $8,980.

4/19/2004 Proxy Information

None of the members of the Compensation Committee as of the date of this proxy statement is or has been an officer of Granite, nor is any member currently an employee of Granite. Director Kelly’s son, Patrick Kelly, is an operations manager for Granite. He received $105,833 in salary, $53,741 in commissions and other compensation totaling $81,020 (including Profit Sharing cash bonus, vested restricted stock, vehicle benefit and restricted stock dividend) during fiscal year 2003. Director Searle’s son, George G. Searle, is an area manager with Granite’s subsidiary, Granite Halmar Construction Company, Inc. During fiscal year 2003, he received $139,999 in salary and a Profit Sharing cash bonus of $7,125.

Mr. Dorey, our President and Chief Executive Officer, is a non-managing member of a limited liability company, or LLC, in which he holds an 11.32% interest. During 2003, our wholly-owned subsidiary, Granite Construction Company, performed certain road and utility construction services under a contract with the LLC, which provides for the LLC to pay Granite Construction Company a total of $360,877. The work was substantially completed during 2003.

David V. Watts, a son of David H. Watts, Chairman of the Board, is Granite’s Director of Information Technology. For fiscal year 2003, Mr. Watts was paid a salary of $116,400, a $31,607 bonus and other compensation totaling $20,847 (including Profit Sharing cash bonus, restricted stock dividend and moving reimbursement). He also has a home loan from Granite as part of a relocation package. During fiscal year 2003, the largest amount outstanding on the loan was $75,000. At December 31, 2003, the outstanding amount was $62,500.

Director Kelly’s son, Patrick Kelly, is an operations manager for Granite. He received $105,833 in salary, $53,741 in commissions and other compensation totaling $81,020 (including Profit Sharing cash bonus, vested restricted stock, vehicle benefit and restricted stock dividend) during fiscal year 2003.

Director Searle’s son, George G. Searle, is an area manager with Granite’s subsidiary, Granite Halmar Construction Company, Inc. During fiscal year 2003, he received $139,999 in salary and a Profit Sharing cash bonus of $7,125.

4/3/2003 Proxy Information

Mr. Dorey, our President and Chief Operating Officer, is a non-managing member of a limited liability company, or LLC, in which he holds an 11.32% interest. During 2002, our wholly-owned subsidiary, Granite Construction Company, performed certain road and utility construction services under contracts with the LLC, valued at $2,794,225. The work was completed in the fall of 2002, and the LLC has no current ongoing contracts.