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Revenue From Contracts With Customers
6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenue From Customers
4.REVENUE FROM CUSTOMERS
Backlog
The Company had the following backlog, by segment:
 June 30,
2020
December 31,
2019
Heavy Civil Backlog$874,822  $834,049  
Specialty Services Backlog258,992  233,976  
Total Heavy Civil and Specialty Services Backlog$1,133,814  $1,068,025  
The Company expects to recognize approximately 63% of its backlog as revenue during the next twelve months, and the balance thereafter.
Revenue Disaggregation
The following tables present the Company’s revenue disaggregated by major end market and contract type:
Three Months Ended June 30,Six Months Ended June 30,
Revenue by major end market2020201920202019
Heavy Highway$152,526  $129,964  $248,900  $223,574  
Aviation34,867  37,061  63,324  66,998  
Water Containment and Treatment16,529  15,515  38,338  30,749  
Other16,526  17,696  25,501  29,420  
Heavy Civil Revenue$220,448  $200,236  $376,063  $350,741  
Land Development$105,639  $—  $181,884  $—  
Commercial30,064  27,894  58,542  58,573  
Specialty Services Revenue$135,703  $27,894  $240,426  $58,573  
Residential Revenue$43,887  $35,956  $80,237  $78,721  
Revenues$400,038  $264,086  $696,726  $488,035  
Revenue by contract type
Fixed-Unit Price$203,692  $185,297  $345,431  $326,516  
Lump Sum147,460  43,666  261,712  82,798  
Residential and Other48,886  35,123  89,583  78,721  
Revenues$400,038  $264,086  $696,726  $488,035  
Each of these contract types presents advantages and disadvantages. Typically, the Company assumes more risk with lump-sum contracts. However, these types of contracts offer additional profits if the work is completed for less than originally estimated. Under fixed-unit price contracts, the Company’s profit may vary if actual labor-hour costs vary significantly from the negotiated rates. Also, because some contracts can provide little or no fee for managing material costs, the components of contract cost can impact profitability.
Variable Consideration
The Company has projects that it is in the process of negotiating, or awaiting final approval of, unapproved change orders and claims with its customers. The Company is proceeding with its contractual rights to recoup additional costs incurred from its customers based on completing work associated with change orders, including change orders with pending change order pricing, or claims related to significant changes in scope which resulted in substantial delays and additional costs in completing the work. Unapproved change order and claim information has been provided to the Company’s customers and negotiations with the customers are ongoing. If additional progress with an acceptable resolution is not reached, legal action will be taken.
Based upon the Company’s review of the provisions of its contracts, specific costs incurred and other related evidence supporting the unapproved change orders and claims, together in some cases as necessary with the views of the Company’s outside claim consultants, the Company concluded it was appropriate to include in project price amounts of $8,200 and $3,000, at June 30, 2020 and December 31, 2019, respectively, relating to unapproved change orders and claims. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined.
Contract Estimates
Accounting for long-term contracts and programs involves the use of various techniques to estimate total contract revenue and costs. For long-term contracts, the Company estimates the profit on a contract as the difference between the total estimated revenue and expected costs to complete a contract and recognizes such profit over the life of the contract.
Contract estimates are based on various assumptions to project the outcome of future events that often span several years. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials and the performance of subcontractors. Changes in job performance, job conditions and estimated profitability, including those changes arising from contract penalty provisions and final contract settlements may result in revisions to costs and income and are recognized in the period in which the revisions are determined.
Changes in estimated revenues and gross margin resulted in net increases of $2,197 and $2,292 for the three and six months ended June 30, 2020, and net increases of $3,500 and $3,300 for the three and six months ended June 30, 2019, included in “Operating income” on the Condensed Consolidated Statements of Operations.