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Revenue From Customers
9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
Revenue From Customers
3.REVENUE FROM CUSTOMERS
BacklogThe following table presents the Company’s backlog, by segment:
September 30,
2021
December 31,
2020
Heavy Civil Backlog$1,019,904 $898,183 
Specialty Services Backlog391,443 277,205 
Total Heavy Civil and Specialty Services Backlog$1,411,347 $1,175,388 
The Company expects to recognize approximately 64% of its backlog as revenue during the next twelve months, and the balance thereafter.
Revenue DisaggregationThe following tables present the Company’s revenue disaggregated by major end market and contract type:
Three Months Ended September 30,Nine Months Ended September 30,
Revenues by major end market2021202020212020
Heavy Highway$188,746 $148,239 $427,451 $397,139 
Aviation35,840 20,473 99,816 83,797 
Water Containment and Treatment11,463 17,751 41,890 56,089 
Other13,849 14,615 30,948 40,116 
Heavy Civil Revenues249,898 201,078 600,105 577,141 
Site Development121,286 114,961 341,601 296,845 
Commercial26,970 25,010 82,647 83,552 
Specialty Services Revenues148,256 139,971 424,248 380,397 
Residential Revenues65,295 42,409 156,078 122,646 
Total Revenues$463,449 $383,458 $1,180,431 $1,080,184 
Revenues by contract type
Fixed-Unit Price$267,093 $187,692 $670,526 $631,639 
Lump Sum129,742 148,463 348,313 301,025 
Residential and Other66,614 47,303 161,592 147,520 
Total Revenues$463,449 $383,458 $1,180,431 $1,080,184 
Each of these contract types presents advantages and disadvantages. Typically, the Company assumes more risk with lump-sum contracts. However, these types of contracts offer additional profits if the work is completed for less than originally estimated. Under fixed-unit price contracts, the Company’s profit may vary if actual labor-hour costs vary significantly from the negotiated rates. Also, because some contracts can provide little or no fee for managing material costs, the components of contract cost can impact profitability.
Variable Consideration
The Company has projects that it is in the process of negotiating, or awaiting final approval of, unapproved change orders and claims with its customers. The Company is proceeding with its contractual rights to recoup additional costs incurred from its customers based on completing work associated with change orders, including change orders with pending change order pricing, or claims related to significant changes in scope which resulted in substantial delays and additional costs in completing the work. Unapproved change order and claim information has been provided to the Company’s customers and negotiations with the customers are ongoing. If additional progress with an acceptable resolution is not reached, legal action will be taken. Based upon the Company’s review of the provisions of its contracts, specific costs incurred and other related evidence supporting the unapproved change orders and claims, together in some cases as necessary with the views of the Company’s outside claim consultants, the Company concluded it was appropriate to include in project price amounts of $13,900 and $7,142, at September 30, 2021 and December 31, 2020, respectively, relating to unapproved change orders and claims. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined.
Contract Estimates
Accounting for long-term contracts and programs involves the use of various techniques to estimate total contract revenue and costs. For long-term contracts, the Company estimates the profit on a contract as the difference between the total estimated revenue and expected costs to complete a contract and recognizes such profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events that often span several years. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials and the performance of subcontractors. Changes in job performance, job conditions and estimated profitability, including those changes arising from contract penalty provisions and final contract settlements may result in revisions to costs and income and are recognized in the period in which the revisions are determined. Changes in contract estimates resulted in a net decrease of $354 and a net increase of $11,678 for the three and nine months ended September 30, 2021, respectively, and net increases of approximately $2,725 and $5,017 for the three and nine months ended September 30, 2020, respectively, included in “Operating income” on the Condensed Consolidated Statements of Operations.