NOTE 8 - CONTRACTS

12 Months Ended

Dec. 28, 2013

Contractors [Abstract]

Long-term Contracts or Programs Disclosure [Text Block]

NOTE 8 - CONTRACTS

Costs, estimated earnings and billings on uncompleted contracts consisted of the following at December 28, 2013 and December 29, 2012 (dollars in thousands):

	2013			2012
Costs incurred on uncompleted contracts	$	43,342		$	51,649
Estimated earnings on uncompleted contracts		12,022			3,216
Earned revenues		55,364			54,865
Less: billings to date		61,212			55,855
Net costs in excess of billings on uncompleted contracts	$	(5,848	)	$	(990	)
Costs and estimated earnings in excess of billings on uncompleted contracts	$	1,206		$	3,840
Billings in excess of costs/earnings on uncompleted contracts		(7,054	)		(4,830	)
Net costs in excess of billings on uncompleted contracts	$	(5,848	)	$	(990	)

Revenue on fixed-price contracts is recorded primarily using the percentage-of-completion (cost-to-cost) method. Revenue and gross margin on fixed-price contracts are subject to revision throughout the lives of the contracts and any required adjustments are made in the period in which the revisions become known. To manage unknown risks, management may use contingency amounts to increase the estimated costs, therefore, lowering the earned revenues until the risks are better identified and quantified or have been mitigated. We currently have $3.6 million in contingency amounts as of December 28, 2013 compared to $4.4 million as of December 29, 2012. Losses on contracts are recorded in full as they are identified.

The Company recognizes service revenue as soon as the services are performed. For clients that we consider higher risk, due to past payment history or history of not providing written work authorizations, we have deferred revenue recognition until we receive either a written authorization or a payment. The current amount of revenue deferred for these reasons is $0.1 million as of December 28, 2013 compared to $0.4 million as of December 29, 2012.