Quarterly report pursuant to Section 13 or 15(d)

Contracts in Progress

v3.19.3
Contracts in Progress
9 Months Ended
Sep. 30, 2019
Contracts in Progress  
Contracts In Progress

Note 5 – Contracts in Progress

 

 

 

 

 

 

 

 

(in thousands)

    

September 30, 2019

    

December 31, 2018

Revenue earned on uncompleted contracts

 

$

809,414

 

$

731,923

Less: Billings to date

 

 

(808,191)

 

 

(750,068)

Net underbilling (overbilling)

 

$

1,223

 

 

(18,145)

 

 

 

 

 

 

 

The above is reflected in the accompanying Condensed Consolidated Balance Sheets as follows:

 

 

 

 

 

  

Costs and estimated earnings in excess of billing on uncompleted contracts

 

$

45,974

 

$

32,698

Billings in excess of costs and estimated earnings on uncompleted contracts

 

 

(44,751)

 

 

(50,843)

Net underbilling (overbilling)

 

$

1,223

 

$

(18,145)

 

Accounts payable includes retainage due to subcontractors totaling $11.8 million and $13.0 million as of September 30, 2019 and December 31, 2018, respectively.

The Company has asserted claims and unapproved change orders on certain construction projects. These occur typically as a result of scope changes and project delays. Management continually evaluates these items and estimates the recoverable amounts and, if significant, these recoverability estimates are evaluated to determine the net realizable value. If additional amounts are recovered, additional contract revenue would be recognized.

For the three months ended September 30, 2019, we recorded revisions in our contract estimates for certain construction and service projects. For individual construction projects with revisions having a material gross profit impact, this resulted in gross profit write ups totaling $0.6 million on one Mid-Atlantic region project and one New England region project. We also recorded revisions in contract estimates that resulted in project write downs totaling $3.7 million on six construction projects in our Southern California region and one construction project in our New England region.

For the nine months ended September 30, 2019, we recorded revisions in our contract estimates for certain construction and service projects. For individual construction projects with revisions having a material gross profit impact, this resulted in gross profit write ups totaling $3.4 million on seven construction projects, including two projects totaling $0.7 million for our Mid-Atlantic region. In addition, one of these project write ups in the amount of $1.4 million resulted from our settlement of a significant Michigan project. Revisions in our contract estimates on one service project resulted in a gross profit write up of $0.2 million on a Mid-Atlantic region project. We also recorded revisions in contract estimates that resulted in project write downs totaling $6.5 million on nine construction projects, including seven projects totaling $5.1 million in our Southern California region, one project for $1.0 million in our Western Pennsylvania region and one project for $0.4 million in our Mid-Atlantic region. Revisions in our contract estimates on one service project resulted in a gross profit write down of $0.4 million on a Southern California region project.