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CONTRACT COSTS
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6 Months Ended |
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Jun. 30, 2011
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| CONTRACT COSTS |
NOTE 5 – CONTRACT COSTS Pass-through costs consist of material and sub-contract costs associated with projects that are included in revenue, but have little or no impact to the amount of gross margin. Pass-through costs, as a percentage of revenue, for the three-month period ended June 30, 2011 were 50.4% compared to 43.7% for the three month period ended June 30, 2010. Pass-through costs, as a percentage of revenue, for the six-month period ended June 30, 2011 were 46.4% compared to 40.6% for the six-month period ended June 30, 2010.
At June 30, 2011, we recorded revenue totaling $784,000 related to certain change orders on two projects which have been approved as to scope but not price. We expect to resolve these change orders in the third quarter of 2011. At June 30, 2010, we had no unapproved change orders recorded in revenue. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. We recognized contract losses of $688,000 and $1.2 million in the three months ended June 30, 2011 and 2010, respectively. We recognized contract losses of $1.1 million and $1.5 million in the six months ended June 30, 2011 and 2010, respectively. |