XML 41 R14.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Construction Contracts
 12 Months Ended
Dec. 31, 2019
Contractors [Abstract]  
Construction Contracts
Construction Contracts
 
Construction contract costs and estimated earnings in excess of billings represent reimbursable costs and amounts earned under contracts in progress as of the balance sheet date. Such amounts become billable according to contract terms, which usually consider the passage of time, achievement of certain milestones, or completion of the project. The Company expects to bill and collect substantially all construction contract costs and estimated earnings in excess of billings as of December 31, 2019 during the year ending December 31, 2020.  

Billings in excess of construction contract costs and estimated earnings represent billings or collections on contracts made in advance of revenue recognized.

The following table summarizes the changes to the balances in the Company’s construction contract costs and estimated earnings in excess of billings account and the billings in excess of construction contract costs and estimated earnings account for the year ended December 31, 2019 and 2018 (in thousands):

 
 
Year ended December 31, 2019
 
Year ended December 31, 2018
 
 
Construction contract costs and estimated earnings in excess of billings
 
Billings in excess of construction contract costs and estimated earnings
 
Construction contract costs and estimated earnings in excess of billings
 
Billings in excess of construction contract costs and estimated earnings
Beginning balance
 
$
1,358

 
$
3,037

 
$
245

 
$
3,591

Revenue recognized that was included in the balance at the beginning of the period
 
—

 
(3,037
)
 
—

 
(3,591
)
Increases due to new billings, excluding amounts recognized as revenue during the period
 
—

 
6,283

 
—

 
4,243

Transferred to receivables
 
(2,557
)
 
—

 
(245
)
 
—

Construction contract costs and estimated earnings not billed during the period
 
249

 
—

 
352

 
—

Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion
 
1,199

 
(977
)
 
1,006

 
(1,206
)
Ending balance
 
$
249

 
$
5,306

 
$
1,358

 
$
3,037



The Company defers pre-contract costs when such costs are directly associated with specific anticipated contracts and their recovery is probable. Pre-contract costs of $0.9 million and $1.4 million were deferred as of December 31, 2019 and 2018, respectively. Amortization of pre-contract costs for the years ended December 31, 2019 and 2018 was $0.6 million and less than $0.1 million, respectively.
 
Construction receivables and payables include retentions—amounts that are generally withheld until the completion of the contract or the satisfaction of certain restrictive conditions such as fulfillment guarantees. As of December 31, 2019 and 2018, construction receivables included retentions of $9.0 million and $8.5 million, respectively. The Company expects to collect substantially all construction receivables as of December 31, 2019 during the year ending December 31, 2020. As of December 31, 2019 and 2018, construction payables included retentions of $18.0 million and $21.6 million, respectively. The Company expects to pay substantially all construction payables as of December 31, 2019 during the year ending December 31, 2020.

The Company’s net position on uncompleted construction contracts comprised the following as of December 31, 2019 and 2018 (in thousands):
 
 
December 31, 
 
2019
 
2018
Costs incurred on uncompleted construction contracts
$
695,564

 
$
594,006

Estimated earnings
24,553

 
20,375

Billings
(725,174
)
 
(616,060
)
Net position
$
(5,057
)
 
$
(1,679
)
 
 
 
 
Construction contract costs and estimated earnings in excess of billings
$
249

 
$
1,358

Billings in excess of construction contract costs and estimated earnings
(5,306
)
 
(3,037
)
Net position
$
(5,057
)
 
$
(1,679
)
 
The Company's balances and changes in construction contract price allocated to unsatisfied performance obligations (backlog) for each of the three years ended December 31, 2019, 2018 and 2017 were as follows (in thousands):
 
Years Ended December 31, 
 
2019
 
2018
 
2017
Beginning backlog
$
165,863

 
$
49,167

 
$
217,718

New contracts/change orders
182,495

 
192,852

 
25,224

Work performed
(105,736
)
 
(76,156
)
 
(193,775
)
Ending backlog
$
242,622

 
$
165,863

 
$
49,167



The Company expects to complete a majority of the uncompleted contracts as of December 31, 2019 during the next 12 to 18 months.