Costs and Estimated Earnings on Uncompleted Contracts

3 Months Ended

Mar. 31, 2018

Costs and Estimated Earnings on Uncompleted Contracts [Abstract]

Costs and Estimated Earnings on Uncompleted Contracts

5.	Costs and Estimated Earnings on Uncompleted Contracts

Costs and estimated earnings on uncompleted contracts consisted of the following at March 31, 2018 and December 31, 2017:

	March 31, 2018			December 31, 2017
Costs incurred on uncompleted contracts	$	5,026,529		$	3,681,965
Estimated earnings to date on uncompleted contracts		472,891			328,273
Subtotal		5,499,420			4,010,238
Less: billings to date		(6,661,210	)		(5,622,111	)
Net contract liabilities	$	(1,161,790	)	$	(1,611,873	)

The above amounts are included in the accompanying condensed consolidated balance sheets under the following captions at March 31, 2018 and December 31, 2017.

	March 31, 2018			December 31, 2017
Costs and estimated earnings in excess of billings on uncompleted contracts	$	1,412		$	61,175
Billings in excess of cost and estimated earnings on uncompleted contracts		(1,163,202	)		(1,673,048	)
Net contract liabilities	$	(1,161,790	)		(1,611,873	)

Although management believes it has established adequate procedures for estimating costs to complete on open contracts, it is at least reasonably possible that additional significant costs could occur on contracts prior to completion. The Company periodically evaluates and revises its estimates and makes adjustments when they are considered necessary.