Note 7 - Contract Assets and Liabilities

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

7.  Contract Assets and Liabilities

As work is performed, revenue is recognized and the corresponding contract liabilities are reduced. We recognized revenue of $146.4 million and $95.8 million during the three months ended March 31, 2021 and 2020, respectively, that was included in the contract liability balances at December 31, 2020 and 2019, respectively.

As a result of changes in contract transaction price from items such as executed or estimated change orders and resolution of contract modifications and claims, we recognized revenue of $72.1 million and $43.9 million during the three months ended March 31, 2021 and 2020, respectively, related to performance obligations that were satisfied or partially satisfied prior to the end of the periods.

As of  March 31, 2021, December 31, 2020 and March 31, 2020, the aggregate claim recovery estimates included in contract asset and liability balances were $42.4 million, $37.7 million and $76.5 million, respectively.

The components of the contract asset balances as of the respective dates were as follows:

(in thousands)		March 31, 2021		December 31, 2020		March 31, 2020
Costs in excess of billings and estimated earnings	$	59,055	$	39,300	$	114,378
Contract retention		126,165		125,639		112,140
Total contract assets	$	185,220	$	164,939	$	226,518

As of  March 31, 2021, December 31, 2020 and March 31, 2020, no contract retention individually exceeded 10% of total net receivables at any of the presented dates. The majority of the contract retention balance is expected to be collected within one year. 

The components of the contract liability balances as of the respective dates were as follows:

(in thousands)		March 31, 2021		December 31, 2020		March 31, 2020
Billings in excess of costs and estimated earnings, net of retention	$	132,830	$	143,623	$	127,560
Provisions for losses		27,319		27,698		6,251
Total contract liabilities	$	160,149	$	171,321	$	133,811