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ACCOUNTS RECEIVABLE
3 Months Ended
Apr. 30, 2017
ACCOUNTS RECEIVABLE  
ACCOUNTS RECEIVABLE

NOTE 5 — ACCOUNTS RECEIVABLE

 

Amounts retained by project owners under construction contracts and included in accounts receivable at April 30 and January 31, 2017 were $47.6 million and $36.2 million, respectively. Such retainage amounts represent funds withheld by project owners until a defined phase of a contract or project has been completed and accepted by the project owner. Retention amounts and the length of retention periods may vary. The amount outstanding as of April 30, 2017 relates substantially to active projects and will not be collected until the fiscal year ending January 31, 2019. Retainage amounts related to active contracts are classified as current assets regardless of the term of the applicable contract and amounts are generally collected by the completion of the applicable contract.

 

The Company monitors its exposure to credit losses and maintains an allowance for anticipated losses considered necessary under the circumstances based on historical experience with uncollected accounts and a review of its currently outstanding accounts and notes receivable. The amount of the allowance for uncollectible accounts as of April 30 and January 31, 2017 was approximately $1.9 million, and it related primarily to project development loans made in prior years. The provision for uncollectible accounts for the three months ended April 30, 2017 was not material. The Company did not record a provision for uncollectible accounts for the three months ended April 30, 2016.