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Contract Assets and Liabilities
 6 Months Ended
Jun. 30, 2019
Contractors [Abstract]  
Contract Assets and Liabilities
3. Contract Assets and Liabilities
 
Contracts with customers usually stipulate the timing of payment, which is defined by the terms found within the various contracts under which work was performed during the period. Therefore, contract assets and liabilities are created when the timing of costs incurred on work performed does not coincide with the billing terms, which frequently include retention provisions contained in each contract.
 
The Company’s consolidated balance sheets present contract assets which contain unbilled revenue and contract retainages associated with contract work that has been completed and billed but not paid by customers, pursuant to retainage provisions, that are generally due once the job is completed and approved. The allowance for collection of contract retainage was not significant as of June 30, 2019 and 2018.
 
Contract assets consisted of the following:
 
 
 
June 30,
 
 
December 31,
 
 
 
 
(in thousands)
 
2019
 
 
2018
 
 
Change
 
 
 
 
 
 
 
 
 
 
 
Unbilled revenue
 
$
109,287
 
 
$
111,153
 
 
$
(1,866
)
Contract retainages, net
 
 
65,518
 
 
 
49,128
 
 
 
16,390
 
Contract assets
 
$
174,805
 
 
$
160,281
 
 
$
14,524
 
 
The Company’s consolidated balance sheets present contract liabilities which contain deferred revenue and an accrual for contracts in a loss provision.
 
Contract liabilities consisted of the following:
 
 
 
June 30,
 
 
December 31,
 
 
 
 
(in thousands)
 
2019
 
 
2018
 
 
Change
 
 
 
 
 
 
 
 
 
 
 
Deferred revenue
 
$
52,364
 
 
$
57,051
 
 
$
(4,687
)
Accrued loss provision
 
 
1,217
 
 
 
1,483
 
 
 
(266
)
Contract liabilities
 
$
53,581
 
 
$
58,534
 
 
$
(4,953
)
 
The following table provides information about contract assets and contract liabilities from contracts with customers:
 
 
 
June 30,
 
 
December 31,
 
 
 
 
(in thousands)
 
2019
 
 
2018
 
 
Change
 
 
 
 
 
 
 
 
 
 
 
Contract assets
 
$
174,805
 
 
$
160,281
 
 
$
14,524
 
Contract liabilities
 
 
(53,581
)
 
 
(58,534
)
 
 
4,953
 
Net contract assets (liabilities)
 
$
121,224
 
 
$
101,747
 
 
$
19,477
 
 
The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing of the Company’s billings in relation to its performance of work. The amounts of revenue recognized in the period that were included in the opening contract liability balances were $4.4 million and $32.8
million for the three and six months ended June 30, 2019, respectively. The Company did not recognize any revenue that was included in the opening contract balance during the three months ended June 30, 2018 and recognized
$16.2
million for the six months ended June 30, 2018. This revenue consists primarily of work performed on previous billings to customers.
 
The net asset position for contracts in process consisted of the following:
 
 
 
June 30,
 
 
December 31,
 
(in thousands)
 
2019
 
 
2018
 
 
 
 
 
 
 
 
Costs and estimated earnings on uncompleted contracts
 
$
2,686,781
 
 
$
2,718,713
 
Less: billings to date
 
 
2,629,858
 
 
 
2,664,611
 
 
 
$
56,923
 
 
$
54,102
 
 
The net asset position for contracts in process is included within the contract asset and contract liability in the accompanying consolidated balance sheets as follows:
 
 
 
June 30,
 
 
December 31,
 
(in thousands)
 
2019
 
 
2018
 
 
 
 
 
 
 
 
Unbilled revenue
 
$
109,287
 
 
$
111,153
 
Deferred revenue
 
 
(52,364
)
 
 
(57,051
)
 
 
$
56,923
 
 
$
54,102