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Contract Assets and Contract Liabilities
 9 Months Ended
Sep. 30, 2021
Contract Assets and Contract Liabilities [Abstract]  
Contract Assets and Contract Liabilities

5.

Contract Assets and Contract Liabilities  

 

Costs and estimated earnings on uncompleted contracts, which represent contract assets and contract liabilities, consisted of the following at September 30, 2021 and December 31, 2020:

 

 

 

2021

 

 

2020

 

 

Costs incurred on uncompleted contracts 

 

$

8,670,563

 

 

$

4,572,581

 


Provision for loss on uncompleted contracts

1,321,094


—

Estimated earnings (losses) to date on uncompleted contracts

 

 

(3,584,557

 )

 

 

872,302

 


Gross contract assets

 

 

6,407,100

 

 

 

5,444,883

 


Less: billings to date

 

 

(7,098,658

 )

 

 

(5,916,487

)


    Net contract liabilities on uncompleted contracts

 

$

(691,558

 )

 

$

(471,604

)

             

The above amounts are included in the accompanying condensed consolidated balance sheets under the following captions at September 30, 2021 and December 31, 2020. 

 

 

2021

 

 

2020

 

 

Contract assets  

 

$

484,622

 

 

$

1,303,136

 


Contract liabilities

 

 

(1,176,180

 )

 

 

(1,774,740

)

 

    Net contract liabilities

 

$

(691,558

 )

 

$

(471,604

)

 

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.  The Company has experienced accrued losses on legacy contract commitments from the acquisition of SG ECHO due to escalations in material pricing related to COVID-19 and labor overages.