Costs, Estimated Earnings and Billings on Uncompleted Contracts

12 Months Ended

Jan. 31, 2014

Contractors [Abstract]

Costs, Estimated Earnings and Billings on Uncompleted Contracts

NOTE 7 – COSTS, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS

The Company’s billing practices are governed primarily by the contract terms of each project based on the achievement of milestones, pre-agreed schedules or progress towards completion approved by the project owner. Billings do not necessarily correlate with revenues recognized under the percentage-of-completion method of accounting.

The tables below set forth the aggregate amount of costs incurred and earnings accrued on uncompleted contracts compared with the billings on those contracts through January 31, 2014 and 2013, and reconcile the net amounts of billings in excess of costs and estimated earnings to the amounts included in the consolidated balance sheets at those dates.

	2014		2013
Costs incurred on uncompleted contracts	$	162,137,000	$	259,390,000
Estimated accrued earnings		21,961,000		48,724,000
		184,098,000		308,114,000
Less – Billings to date		318,307,000		380,295,000
	$	134,209,000	$	72,181,000
Costs and estimated earnings in excess of billings	$	527,000	$	1,178,000
Billings in excess of costs and estimated earnings		134,736,000		73,359,000
	$	134,209,000	$	72,181,000

Contract costs include all direct costs, such as material and labor, and those indirect costs related to contract performance such as payroll taxes, insurance, job supervision and equipment charges. The amounts of costs and estimated earnings in excess of billings are expected to be billed and collected in the normal course of business.