Contracts in Progress
|6 Months Ended|
Jun. 30, 2018
|Property, Plant and Equipment [Abstract]|
|Contracts In Progress [Text Block]||
Note 5 – Contracts in Progress
Accounts payable includes retainage due to subcontractors totaling $11.2 million and $11.1 million as of June 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
$3.9 millionand $8.0 million for the three and six months ended June 30, 2018, respectively, and gross profit write downs on service projects of
$0.9 millionfor the six months ended June 30, 2018
.The Company is pursuing recovery remedies, 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 $0.4 million and $2.4 million for the three and six months ended June 30, 2018, respectively. Revisions in our contract estimates on service projects resulted in gross profit write ups of $0.4 million and
$0.6 millionfor the three and six months ended June 30, 2018, respectively