Annual report pursuant to Section 13 and 15(d)

Contracts in Progress

v3.7.0.1
Contracts in Progress
12 Months Ended
Dec. 31, 2016
Property, Plant and Equipment [Abstract]  
Contracts In Progress [Text Block]
Note 6 – Contracts in Progress
 
 
 
Successor
 
 
Predecessor
 
(in thousands)
 
December 31, 2016
 
 
December 31, 2015
 
Revenue earned on uncompleted contracts
 
$
532,549
 
 
$
390,847
 
Less: Billings to date
 
 
(539,780)
 
 
 
(396,374)
 
Net overbilling
 
$
(7,231)
 
 
 
(5,527)
 
 
 
 
 
 
 
 
 
 
The above is reflected in the accompanying consolidated balance sheets as follows:
 
 
 
 
 
 
 
 
Costs and estimated earnings in excess of billing on uncompleted contracts
 
 
31,959
 
 
 
20,745
 
Billings in excess of costs and estimated earnings on uncompleted contracts
 
 
(39,190)
 
 
 
(26,272)
 
Net overbilling
 
$
(7,231)
 
 
$
(5,527)
 
 
Accounts payable includes retainage due to subcontractors totaling $8.9 million and $6.0 million as of December 31, 2016 and 2015, 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 evaluates these items and estimates the recoverable amounts if this occurs. If significant, these recoverability estimates are evaluated to determine the net realizable value. If additional amounts are recovered, additional contract revenue would be recognized. The current estimated net realizable value on such items as recorded in costs and estimated earnings in excess of billings on uncompleted contracts in the consolidated balance sheets is listed below at December 31:
 
 
 
Successor
 
 
Predecessor
 
 
 
2016
 
 
2015
 
(in thousands)
 
 
 
 
 
 
 
 
Gross amount of unresolved change orders and claims
 
$
7,932
 
 
$
5,658
 
Valuation allowance
 
 
-
 
 
 
-
 
Net amount of unresolved change orders and claims
 
$
7,932
 
 
$
5,658
 
 
The Company anticipates that the majority of such amounts will be earned as revenue within one year.