Quarterly report pursuant to Section 13 or 15(d)

Contract Assets and Contract Liabilities

v3.20.2
Contract Assets and Contract Liabilities
6 Months Ended
Jun. 30, 2020
Contract Assets and Contract Liabilities [Abstract]  
Contract Assets and Contract Liabilities

5.

Contract Assets and Contract Liabilities  

 

Costs and estimated earnings on uncompleted contracts, which represent contract assets and contract liabilities, consisted of the following at June 30, 2020 and December 31, 2019:

 

 

 

 

2020

 

 

2019

 

 

Costs incurred on uncompleted contracts 

 

$

622,745

 

 

$

513,558

 

 

Estimated earnings to date on uncompleted contracts

 

 

178,553

 

 

 

127,032

 

 

Gross contract assets

 

 

801,298

 

 

 

640,590

 

 

Less: billings to date

 

 

(938,319

)

 

 

(703,532

)

 

    Net contract liabilities 

 

$

(137,021

)

 

$

(62,942

)

 

The above amounts are included in the accompanying condensed consolidated balance sheets under the following captions at June 30, 2020 and December 31, 2019. 


   

 

 

2020

 

 

2019

 

 

Contract assets 

 

$

11,830

 

 

$

106,015

 

 

Contract liabilities

 

 

(148,851

)

 

 

(168,957

)

 

    Net contract liabilities

 

$

(137,021

)

 

$

(62,942

)

 

Although management believes it has established adequate procedures for estimating costs to complete on open contracts, it is at least reasonably possible that additional significant costs could occur on contracts prior to completion. The Company periodically evaluates and revises its estimates and makes adjustments when they are considered necessary.