Sound Transit officials say construction of the 1.6-mile light rail line from downtown Tacoma to the Tacoma Dome is coming in close to budget, and that makes Gary Merlino Construction feel pretty good.

The Seattle firm is the project’s primary contractor on a $23.3 million contract.

“It’s definitely a high-caliber job,” said Curtis Nakamura, a Gary Merlino Construction project manager. “For Sound Transit, it’s the biggest project they’ve had, so we feel it’s a showcase. It’s the start for Sound Transit not only in Tacoma but all the way up through Seattle. ... We’re getting it built.”

The 38-year-old firm has also found plenty of re-paving work at Sea-Tac International Airport. The recession has had its impact, however, as it has for most construction companies.

“It affects the whole bidding community,” Nakamura said. “There are fewer projects up for bid. That increases the competition,” lowering winning bid prices.

The company typically ranges between 300 and 500 employees. “We’ve probably let go about 25 percent” of the workers, Nakamura said. “I think everybody has (laid off people) in the last few months.”

Yearly revenues range from $50 million to $100 million, he said.

Nakamura said he sees more projects coming out to bid, so “by summertime we expect to be back up to where we were last summer, closer to 400 employees. ... Absolutely there will be more work by this summer.”

A transportation funding package headed for a November vote fuels some of that optimism. “The more money the public agencies have to spend, the more work we have,” he said.

Nakamura oversees two Merlino projects: Moving electric lines from overhead into underground conduits in the University District for Seattle City Light and replacing a water main in Capitol Hill.

“We do a lot of work for the cities of SeaTac and Seattle, underground utility work, water mains, sewer work, conduits,” Nakamura said.