Contracts in Progress

6 Months Ended

Jun. 30, 2020

Contractors [Abstract]

Contracts in Progress

5.Contracts in Progress

Contracts in progress are as follows at June 30, 2020 and December 31, 2019:

	June 30,		December 31,
	2020		2019
Costs incurred on uncompleted contracts	$	1,004,176	$	884,244
Estimated earnings		158,982		144,160
		1,163,158		1,028,404
Less: Billings to date		(1,180,648)		(1,035,796)
	$	(17,490)	$	(7,392)
Included in the accompanying Condensed Consolidated Balance Sheets under the following captions:
Costs and estimated earnings in excess of billings on uncompleted contracts	$	36,339	$	41,389
Billings in excess of costs and estimated earnings on uncompleted contracts		(53,829)		(48,781)
	$	(17,490)	$	(7,392)

Included in cost and estimated earnings in excess of billings on uncompleted projects is approximately $1.7 million and $0.1 million at June 30, 2020 and December 31, 2019, respectively, related to claims and unapproved change orders. See Note 2 - Summary of Significant Accounting Policies to the Company’s condensed consolidated financial statements for discussion of the accounting for these claims.

Contract costs include all direct costs, such as materials and labor, and those indirect costs incurred that are related to contract performance such as payroll taxes and insurance. General and administrative costs are charged to expense as incurred. Incentive fees, if available, are billed to the customer based on the terms and conditions of the contract. 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 for purposes of calculating total profit or loss on long-term contracts. Changes in job performance and job conditions, including those arising from final contract settlements, may result in revisions to costs and revenues and are recognized in the period in which the revisions are determined. Provisions for estimated losses on contracts in progress are made in the period in which such losses are determined, without regard to the percentage of completion.