Contracts in Progress

3 Months Ended

Mar. 31, 2016

Contracts in progress are as follows at March 31, 2016 and December 31, 2015:



	March 31, 2016			December 31, 2015
Costs incurred on uncompleted contracts	$	747,613		$	782,934
Estimated earnings	115,007			132,694
	862,620			915,628
Less: Billings to date	(842,090		)	(884,504		)
	$	20,530		$	31,124
Included in the accompanying condensed consolidated balance sheet under the following captions:
Costs and estimated earnings in excess of billings on uncompleted contracts	$	48,492		$	59,608
Billings in excess of costs and estimated earnings on uncompleted contracts	(27,962		)	(28,484		)
	$	20,530		$	31,124

Costs and estimated earnings in excess of billings on completed contracts, net of billings totaled $2.8 million at March 31, 2016.

Contract costs include all direct costs, such as materials and labor, and those indirect costs related to contract performance such as payroll taxes and insurance. Changes in job performance, job conditions and estimated profitability may result in revisions to costs and income and are recognized in the period in which the revisions are determined. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined, without regard to the percentage of completion. Pending claims are recognized as an increase in contract revenue only when the collection is deemed probable and if the amount can be reasonably estimated.