Costs and Estimated Earnings on Uncompleted Contracts

3 Months Ended

Mar. 31, 2014

Costs and Estimated Earnings on Uncompleted Contracts [Abstract]

Costs and Estimated Earnings on Uncompleted Contracts

5.           Costs and Estimated Earnings on Uncompleted Contracts

Costs and estimated earnings on uncompleted contracts consist of the following at March 31, 2014 and December 31, 2013:

	2014			2013
Costs incurred on uncompleted contracts	$	239,083		$	228,643
Provision for loss on uncompleted contracts		11,630			9,896
Estimated income (loss)		(58,372	)		(47,932	)
		192,341			190,607
Less:  billings to date		(214,956	)		(214,956	)
	$	(22,615	)	$	(24,349	)

The above amounts are included in the accompanying condensed consolidated balance sheets under the following captions at March 31, 2014 and December 31, 2013.

	2014			2013
Costs and estimated earnings in excess of billings on uncompleted contracts	$	-		$	-
Billings in excess of cost and estimated earnings on uncompleted contracts		(22,615	)		(24,349)
	$	(22,615	)		(24,349	)

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.

As of March 31, 2014 and December 31, 2013, the Company has accrued anticipated losses on uncompleted contracts in the amount of $11,630 and $9,896, respectively. For the three months ended March 31, 2014, $1,734 is included in cost of revenue on the accompanying condensed consolidated statements of operations and comprehensive loss. This amount is included in accounts payable and accrued expenses on the accompanying condensed consolidated balance sheets.