Quarterly report pursuant to Section 13 or 15(d)

Construction Contract and Other Service Revenues

v3.20.2
Construction Contract and Other Service Revenues
 6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
Construction Contract and Other Service Revenues Construction Contract and Other Service Revenues

We disaggregate our construction contract and other service revenues by compensation arrangement and by service type as we believe it best depicts the nature, timing and uncertainty of our revenue. The table below reports construction contract and other service revenues by compensation arrangement (in thousands):
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Construction contract revenue:
 
 
 
 
 
 
 
Guaranteed maximum price
$
5,432

 
$
25,792

 
$
10,476

 
$
38,148

Firm fixed price
2,984

 
1,335

 
8,056

 
3,660

Cost-plus fee
3,563

 
14,969

 
6,872

 
17,029

Other
257

 
203

 
513

 
412

 
$
12,236

 
$
42,299

 
$
25,917

 
$
59,249


The table below reports construction contract and other service revenues by service type (in thousands):
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Construction contract revenue:
 
 
 
 
 
 
 
Construction
$
10,851

 
$
42,010

 
$
23,734

 
$
58,499

Design
1,128

 
86

 
1,670

 
338

Other
257

 
203

 
513

 
412

 
$
12,236

 
$
42,299

 
$
25,917

 
$
59,249



We recognized an increase (decrease) in revenue of $74,000 and $(14,000) in the three months ended June 30, 2020 and 2019, respectively, and $74,000 and $18,000 in the six months ended June 30, 2020 and 2019, respectively, from performance obligations satisfied (or partially satisfied) in previous periods.

Accounts receivable related to our construction contract services is included in accounts receivable, net on our consolidated balance sheets. The beginning and ending balances of accounts receivable related to our construction contracts were as follows (in thousands):
 
For the Six Months Ended June 30,
 
2020
 
2019
Beginning balance
$
12,378

 
$
6,701

Ending balance
$
8,898

 
$
34,837



The increase in the accounts receivable balance reported above for the six months ended June 30, 2019 was due primarily to significant amounts billed near the end of the period.

Contract assets, which we refer to herein as construction contract costs in excess of billings, net are included in prepaid expenses and other assets, net reported on our consolidated balance sheets. The beginning and ending balances of our contract assets were as follows (in thousands):
 
For the Six Months Ended June 30,
 
2020
 
2019
Beginning balance
$
17,223

 
$
3,189

Ending balance
$
5,508

 
$
12,629



Contract liabilities are included in other liabilities reported on our consolidated balance sheets. Changes in contract liabilities were as follows (in thousands):
 
For the Six Months Ended June 30,
 
2020
 
2019
Beginning balance
$
1,184

 
$
568

Ending balance
$
2,435

 
$
156

Portion of beginning balance recognized in revenue during:
 
 
 
Three months ended June 30
$
92

 
$
6

Six months ended June 30
$
738

 
$
445



Revenue allocated to the remaining performance obligations under existing contracts as of June 30, 2020 that will be recognized as revenue in future periods was $70.5 million, approximately $20 million of which we expect to recognize during the remainder of 2020.

We incurred no deferred incremental costs to obtain or fulfill our construction contracts or other service revenues and had no significant credit loss expense on construction contracts receivable or unbilled construction revenue in the three or six months ended June 30, 2020 and 2019.