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Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Revenue is recognized when a performance obligation is satisfied by transferring control over a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. The Company is considered an agent for certain taxes collected from customers. As such, the Company presents revenues net of these taxes at the time of sale to be remitted to governmental authorities, including sales and use taxes.
As part of the adoption of ASC 606 - Revenue from Contracts with Customers, the Company elected the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is 12 months or less.
Contract Estimates and Changes in Estimates
Changes in cost estimates on certain contracts may result in the issuance of change orders, which can be approved or unapproved by the customer, or the assertion of contract claims. The Company recognizes amounts associated with change orders and claims as revenue if it is probable that the contract price will be adjusted and the amount of any such adjustment can be reasonably estimated. Change orders and claims are negotiated in the normal course of business and represent management’s estimates of additional contract revenues that have been earned and are probable of collection.
As of December 31, 2024 and 2023, $56.2 million and $57.3 million, respectively, of unexecuted change orders were included in contract transaction price and in Contract assets on the consolidated balance sheets. The Company was in the process of negotiating execution of these change orders in the normal course of business and the recognized amounts represent the Company’s best estimates of additional contract revenues for which it is not probable that a significant reversal of the revenue amounts will occur in the future.
As of December 31, 2024 and 2023, in the normal course of business, the Company had additional priced work not approved by the customer to begin project work of approximately $265.3 million and $187.4 million, respectively, with minimal costs incurred. These amounts were excluded from contract transaction price. In addition, claim positions of $54.9 million and $42.7 million were excluded from the contract transaction price as of December 31, 2024 and 2023, respectively. The Company continues to evaluate these claims.
As of December 31, 2024 and 2023, the Company recorded loss provisions of $1.0 million and $1.5 million, respectively, in Contract liabilities on the consolidated balance sheets related to contracts that are still being completed and remain recorded.
The Company received notification in October 2023 from a customer that it was withholding payment of approximately $31.3 million on remaining outstanding billings, including retention, on a large project with a contract that was billed on a time and materials basis with no stated maximum price. The Company believes it has substantial defenses against these claims based upon the terms of the contract and it has performed under the terms of the contract. Therefore, the Company believes collection of the remaining outstanding billings, including retention, is probable and, as a result, the Company has recognized the revenue from this project in its results. However, there is uncertainty surrounding this matter, including the potential long-term nature of dispute resolution, the Company filing a lien on the property and the broad range of possible consideration amounts as a result of negotiations and potential litigation to resolve the dispute.
Disaggregation of Revenue
In the following tables, revenue is disaggregated by contract type and customer type for each reportable segment. The Company believes this level of disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. For more information on the Company’s reportable segments, refer to Note 12 – Business Segment Data.
The following tables present revenue disaggregated by contract type:
Year ended December 31, 2024
Electrical & MechanicalTransmission & Distribution
Total
(In thousands)
Fixed-price
$1,299,059 $385,868 $1,684,927 
Unit-price
61,964 155,599 217,563 
Cost reimbursable*
670,424 295,679 966,103 
Total contract revenues
2,031,447 837,146 2,868,593 
Eliminations(7,536)(11,372)(18,908)
Total operating revenues
$2,023,911 $825,774 $2,849,685 
__________________
*Includes time and material, time and equipment, and cost reimbursable plus fee contracts.
Year ended December 31, 2023
Electrical & MechanicalTransmission & Distribution
Total

(In thousands)
Fixed-price
$1,049,626 $353,836 $1,403,462 
Unit-price
81,786 94,794 176,580 
Cost reimbursable*
1,003,455 285,947 1,289,402 
Total contract revenues
2,134,867 734,577 2,869,444 
Eliminations(9,324)(5,730)(15,054)
Total operating revenues
$2,125,543 $728,847 $2,854,390 
__________________
*Includes time and material, time and equipment, and cost reimbursable plus fee contracts.
Year ended December 31, 2022
Electrical & MechanicalTransmission & Distribution
Total

(In thousands)
Fixed-price
$1,002,117 $308,530 $1,310,647 
Unit-price
91,565 116,831 208,396 
Cost reimbursable*
904,158 292,032 1,196,190 
Total contract revenues
1,997,840 717,393 2,715,233 
Eliminations(9,111)(6,872)(15,983)
Total operating revenues
$1,988,729 $710,521 $2,699,250 
___________________
*Includes time and material, time and equipment, and cost reimbursable plus fee contracts.
The following table presents revenue disaggregated by customer type:
Years Ended December 31,
202420232022
(In thousands)
Commercial
$1,197,760 $1,204,016 $1,082,456 
Industrial
322,661 473,339 405,730 
Institutional
364,611 262,344 215,509 
Renewables
36,975 55,402 151,100 
Service & other
109,440 139,766 143,045 
Total Electrical & Mechanical
2,031,447 2,134,867 1,997,840 
Utility
753,725 677,434 645,077 
Transportation
83,421 57,143 72,316 
Total Transmission & Distribution
837,146 734,577 717,393 
Eliminations
(18,908)(15,054)(15,983)
Total operating revenues
$2,849,685 $2,854,390 $2,699,250 
Uncompleted Contracts, Contract Assets and Contract Liabilities
Costs, estimated earnings and billings on uncompleted contracts were summarized as follows as of December 31:
20242023
(In thousands)
Costs incurred on uncompleted contracts
$7,034,838 $6,390,641 
Estimated earnings
995,766 840,994 
Costs and estimated earnings on uncompleted contracts8,030,604 7,231,635 
Less: billings to date
8,070,859 7,165,508 
Net contract assets (liabilities)
$(40,255)$66,127 
The timing of revenue recognition may differ from the timing of invoicing to customers. The timing of invoicing to customers does not necessarily correlate with the timing of revenues being recognized under the cost-to-cost method of accounting. Contracts from contracting services usually stipulate the timing of payment, which is defined by the terms found within the various contracts under which work was performed during the period. Contracts from contracting services are billed as work progresses in accordance with agreed upon contractual terms. Generally, billing to the customer occurs contemporaneous to revenue recognition. A variance in timing of the billings may result in contract assets or contract liabilities.
Contract assets consist of unbilled revenue and retainage. Unbilled revenue occurs when revenues are recognized under the cost-to-cost measure of progress, which exceeds amounts billed on uncompleted contracts. Such amounts will be billed as standard contract terms allow, usually based on various measures of performance or achievement. Retainage represents amounts that have been contractually invoiced to customers and where payments have been partially withheld pending the achievement of certain milestones, satisfaction of other contractual conditions, or completion of the project. Contract assets are not considered a significant financing component as they are intended to protect the customer in the event the Company does not perform on its obligations under the contract.
Contract liabilities occur when there are billings in excess of revenues recognized under the cost-to-cost measure of progress on uncompleted contracts. Contract liabilities decrease as revenue is recognized from the satisfaction of the related performance obligation. Contract liabilities are not considered to have a significant financing component as they are used to meet working capital requirements that generally are higher in the early stages of a contract and are intended to protect the Company from the other party failing to meet its obligations under the contract.
The Company classifies Contract assets and Contract liabilities that may be settled after one year from the balance sheet date as current, consistent with the timing of the Company’s project operating cycle.
Contract assets and Contract liabilities consisted of the following as of December 31:
20242023
(In thousands)
Unbilled revenue, net
$124,007 $158,529 
Retainage, net
43,042 47,706 
Contract assets, net
$167,049 $206,235 
Deferred revenue, net
$206,283 $138,563 
Accrued loss provision1,021 1,545 
Contract liabilities, net
$207,304 $140,108 
The following table presents the opening and closing balances of net contract assets (liabilities):
20242023
Contract assets
Contract liabilities
Net contract assets (liabilities)
Contract assets
Contract liabilities
Net contract assets (liabilities)
(In thousands)
Balance at beginning of year
$206,235 $(140,108)$66,127 $223,098 $(124,395)$98,703 
Change during year
(39,186)(67,196)(106,382)(16,863)(15,713)(32,576)
Balance at end of year
$167,049 $(207,304)$(40,255)$206,235 $(140,108)$66,127 
Contract assets and contract liabilities fluctuate period to period based on various factors, including, but not limited to, changes in the number and size of projects in progress at period end; variability in billing and payment terms, such as up-front or advance billings, interim or milestone billings, or deferred billings; variability in billing of retainage and the satisfaction of the specified condition; and unapproved change orders and contract claims recognized as revenues. The primary driver of the difference between the Company’s opening and closing contract asset and contract liability balances is the timing of the Company’s billings, including retainage, in relation to its performance of work.
The Company recognized a net increase in revenues of $117.5 million, $116.3 million and $127.3 million for the years ended December 31, 2024, 2023 and 2022, respectively, related to previously recognized deferred revenues that were included in Contract liabilities, net as of December 31, 2023, 2022 and 2021, respectively. The Company recognized a net increase in revenues of $83.4 million, $45.7 million and $46.9 million for the years ended December 31, 2024, 2023 and 2022, respectively, from performance obligations satisfied in prior periods.
Remaining Performance Obligations
Remaining performance obligations include unrecognized revenues that the Company reasonably expects to be realized from the uncompleted portion of services to be performed under job-specific contracts to the extent management believes additional contract revenues will be earned and are deemed probable of collection. The majority of the Company’s contracts for contracting services have an original duration of less than one year.
As of December 31, 2024 and 2023, the aggregate amount of the transaction price allocated to the Company’s remaining performance obligations was $2.46 billion and $2.01 billion, respectively. The table below shows additional information regarding the Company’s remaining performance obligations as of December 31, 2024, including an estimate of when the Company expects to recognize its remaining performance obligations as revenue:
Within 12 Months
Greater than 12 Months
(In thousands)
Electrical & Mechanical
$1,764,571 $435,208 
Transmission & Distribution
226,608 31,121 
Total $1,991,179 $466,329