Contract Assets and Contract Liabilities

9 Months Ended

Sep. 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 September 30, 2020 and December 31, 2019:

	2020			2019
Costs incurred on uncompleted contracts	$	631,790		$	513,558
Estimated earnings to date on uncompleted contracts		149,717			127,032
Gross contract assets		781,507			640,590
Less: billings to date		(3,491,007	)		(703,532	)
Net contract liabilities, on uncompleted contracts	$	(2,709,500	)	$	(62,942	)

             

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

	2020			2019
Contract assets	$	151,230		$	106,015
Contract liabilities		(2,860,730	)		(168,957	)
Net contract liabilities	$	(2,709,500	)	$	(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.