11.	Commitments and Contingencies

Employment Agreements

December

31,

2016,

the Company’s Chief Executive Officer,

one

other officer and certain officers of its subsidiaries had employment agreements which provided for payments of annual salary, incentive compensation and, for certain of the officers, benefits if their employment is terminated without cause.

Self-Insurance

The Company’s policy is to accrue the estimated liability for known claims and for estimated employee health claims, workers compensation claims, general liability claims and other claims that have been incurred but not reported as of each reporting date for our self-insured plans. At

December

31,

2016

and

2015,

the Company has recorded an estimated liability of

$4.0

million and

$2.9

million, respectively, which it believes is adequate for such claims based on its claims history and actuarial studies.

In order to reduce the Company’s exposure to large self-insured health claims, it has obtained stop-loss coverage for the policy period. This covers medical and prescription drug claim amounts in excess of

$55,000

for RLW and JBC, and

$145,000

for all other entities, for each insured person within a plan year and has a combined stop-loss coverage for medical and prescription drug claim amounts in excess of

$5.2

million within a plan year.

In order to reduce the Company’s exposure to other large self-insured claims, it has obtained stop-loss coverage for the policy period for workers’ compensation, general liability, and auto claims in excess of

$500,000,

$250,000

and

$100,000

per occurrence, respectively, with a maximum aggregate liability of

$5.0

million combined casualty losses per year.

For the years ended

December

31,

2016,

2015

and

2014,

the Company incurred

$3.0

million,

$2.0

million and

$2.2

million, respectively, in claim expenses related to these plans.

The Company has a safety and training program in place to help prevent accidents and injuries and works closely with its employees and the insurance company to monitor all claims.

In addition to the self-insurance items noted above, the Company is required by our insurance provider to obtain and hold a standby letter of credit. This letter of credit serves as a guarantee by the banking institution to pay our insurance provider the incurred claim costs attributable to our general liability, workers compensation and automobile liability claims, up to the amount stated in the standby letter of credit, in the event that these claims were not paid by the Company. As a result of entering into our Equipment-based Facility in

2015,

we have cash collateralized the letter of credit, resulting in the cash being designated as restricted. Historically, this standby letter of credit has not been drawn upon. Refer to Note

for more information on our restricted cash and Note

for more information on our Equipment-based Facility, including the amount held in our standby letter of credit at

December

31,

2016

and

2015.

Guarantees

The Company obtains bonding on construction contracts through Travelers Casualty and Surety Company of America (“Travelers”). As is customary in the construction industry, the Company indemnifies Travelers for any losses incurred by it in connection with bonds that are issued. The Company has granted Travelers a security interest in accounts receivable and contract rights for that obligation.

The Company typically indemnifies contract owners for claims arising during the construction process and carries insurance coverage for such claims, which in the past have not been material.

The Company’s Certificate of Incorporation provides for indemnification of its officers and directors. The Company has a directors and officers insurance policy that limits their exposure to litigation against them in their capacities as such.

Litigation

The Company is the subject of certain other claims and lawsuits occurring in the normal course of business. Management, after consultation with legal counsel, does not believe that the outcome of these other actions will have a material impact on the financial statements of the Company. There are no significant unresolved legal issues as of

December

31,

2016

and

2015.

Purchase Commitments

To manage the risk of changes in material prices and subcontracting costs used in

tendering

bids for construction contracts, most of the time, we obtain firm quotations from suppliers and subcontractors before submitting a bid. These quotations do not include any quantity guarantees. As soon as we are advised that our bid is the lowest, we enter into firm contracts with most of our materials suppliers and sub-contractors, thereby mitigating the risk of future price variations affecting the contract costs.