COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

12 Months Ended

Dec. 31, 2017

Contractors [Abstract]

COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

2. COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS ON UNCOMPLETED CONTRACTS

At December 31, 2017, costs and estimated earnings in excess of billings on uncompleted contracts (unbilled) consist of: 

	U.S. Government		Commercial		Total
Costs incurred on uncompleted contracts	$	380,585,374	$	176,564,952	$	557,150,326
Estimated earnings		44,708,920		65,341,115		110,050,035
		425,294,294		241,906,067		667,200,361
Less billings to date		370,755,359		185,361,108		556,116,467
Costs and estimated earnings in excess of billings on uncompleted contracts	$	54,538,935	$	56,544,959	$	111,083,894

At December 31, 2016, costs and estimated earnings in excess of billings on uncompleted contracts (unbilled) consist of:

	U.S. Government		Commercial		Total
Costs incurred on uncompleted contracts	$	341,003,461	$	153,898,425	$	494,901,886
Estimated earnings		39,638,231		58,346,518		97,984,749
		380,641,692		212,244,943		592,886,635
Less billings to date		331,277,942		162,145,504		493,423,446
Costs and estimated earnings in excess of billings on uncompleted contracts	$	49,363,750	$	50,099,439	$	99,463,189

The above amounts are included in the accompanying balance sheets under the following captions at December 31, 2017 and 2016.

	2017			2016
Costs and estimated earnings in excess of billings on uncompleted contracts	$	111,158,551		$	99,578,526
Billings in excess of costs and estimated earnings on uncompleted contracts		(74,657	)		(115,337	)
Totals	$	111,083,894		$	99,463,189

Unbilled costs and estimated earnings are billed in accordance with applicable contract terms. As of December 31, 2017, approximately $35 million of the balances above are not expected to be collected within one year. There are no amounts billed under retainage provisions.

Revisions in the estimated gross profits on contracts and contract amounts are made in the period in which the circumstances requiring the revisions occur. During the years ended December 31, 2017, 2016 and 2015, the effect of such revisions in total estimated contract profits resulted in a decrease to the total gross profit to be earned on the contracts of approximately $1,040,000, $1,667,000 and $1,875,000, respectively, from that which would have been reported had the revised estimate been used as the basis of recognition of contract profits in prior years.

Although management believes it has established adequate procedures for estimating costs to complete on uncompleted open contracts, it is at least reasonably possible that additional significant costs could occur on contracts prior to completion.