Contract Assets and Contract Liabilities

12 Months Ended

Dec. 31, 2019

Contract Assets and Contract Liabilities [Abstract]

Contract Assets and Contract Liabilities

5. Contract Assets and Contract Liabilities 

Costs and estimated earnings on uncompleted contracts, which represent contract assets and contract liabilities, consisted of the following at December 31, 2019 and 2018:

	2019			2018
Costs incurred on uncompleted contracts	$	513,558		$	11,307,975
Estimated earnings to date on uncompleted contracts		127,032			838,615
Gross contract assets		640,590			12,146,590
Less: billings to date		(703,532	)		(13,221,152	)
Net contract assets (liabilities)	$	(62,942	)	$	(1,074,562	)

 The above amounts are included in the accompanying consolidated balance sheets under the following captions at December 31, 2019 and 2018.

	2019			2018
Contract assets	$	106,015		$	260,325
Contract liabilities		(168,957	)		(1,334,887	)
Net contract assets (liabilities)	$	(62,942	)	$	(1,074,562	)

Although management believes it has established adequate procedures for estimating costs to complete on open contracts, it is at least reasonably possible that additional significant costs could occur on contracts prior to completion. The Company periodically evaluates and revises its estimates and makes adjustments when they are considered necessary.