Quarterly report pursuant to Section 13 or 15(d)

Contracts in Progress

v3.10.0.1
Contracts in Progress
9 Months Ended
Sep. 30, 2018
Property, Plant and Equipment [Abstract]  
Contracts In Progress [Text Block]
Note 5 – Contracts in Progress
 
(
in thousands
)
 
September 30, 2018
 
 
December 31, 2017
 
Revenue earned on uncompleted contracts
 
$
649,582
 
 
$
557,164
 
Less: Billings to date
 
 
(669,595
)
 
 
(552,701
)
Net underbilling (overbilling)
 
$
(20,013
)
 
 
4,463
 
 
 
 
 
 
 
 
 
 
The above is reflected in the accompanying Condensed Consolidated Balance Sheets as follows:
 
 
 
 
 
 
 
 
Costs and estimated earnings in excess of billing on uncompleted contracts
 
$
32,407
 
 
$
33,006
 
Billings in excess of costs and estimated earnings on uncompleted contracts
 
 
(52,420
)
 
 
(28,543
)
Net underbilling (overbilling)
 
$
(20,013
)
 
$
4,463
 
 
Accounts payable includes retainage due to subcontractors totaling $11.8 million and $11.1 million as of September 30, 2018 and December 31, 2017, respectively.
 
The Company has asserted claims and may have 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.
 
We recorded revisions in our contract estimates for certain construction and service projects. For projects having revisions with a material gross profit impact, this resulted in gross profit write downs on construction projects of $9.0 million and $18.0 million for the three and nine months ended September 30, 2018, respectively, and gross profit write downs on service projects of $0.6
million and $1.5 million for the three and nine months ended September 30, 2018, respectively. The Company is pursuing recovery remedies for costs incurred due to delays and disruptions, but is not currently in a position to recognize any potential recoveries in its financial statements. We also recorded revisions in our contract estimates on construction projects resulting in gross profit write ups totaling
$2.6
million for the nine months ended September 30, 2018. Revisions in our contract estimates on service projects resulted in gross profit write ups 
of $0.6
million for the nine months ended September 30, 2018.