Quarterly report pursuant to Section 13 or 15(d)

Construction Contract and Other Service Revenues

v3.22.1
Construction Contract and Other Service Revenues
 3 Months Ended
Mar. 31, 2022
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 March 31,
2022 2021
Construction contract revenue:
Guaranteed maximum price $ 47,923  $ 2,101 
Firm fixed price 3,444  1,471 
Cost-plus fee 1,306  12,486 
Other 527  500 
$ 53,200  $ 16,558 
The table below reports construction contract and other service revenues by service type (in thousands):
For the Three Months Ended March 31,
2022 2021
Construction contract revenue:
Construction $ 52,569  $ 15,756 
Design 104  302 
Other 527  500 
$ 53,200  $ 16,558 

We recognized an insignificant amount of revenue in the three months ended March 31, 2022 and 2021 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 Three Months Ended March 31,
2022 2021
Beginning balance $ 7,193  $ 13,997 
Ending balance $ 4,165  $ 7,283 

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 on our consolidated balance sheets. The beginning and ending balances of our contract assets were as follows (in thousands):
For the Three Months Ended March 31,
2022 2021
Beginning balance $ 22,384  $ 10,343 
Ending balance $ 29,389  $ 13,046 

Contract liabilities are included in other liabilities on our consolidated balance sheets. Changes in contract liabilities were as follows (in thousands):
For the Three Months Ended March 31,
2022 2021
Beginning balance $ 2,499  $ 4,610 
Ending balance $ 2,534  $ 6,193 
Portion of beginning balance recognized in revenue during period $ 26  $ 547 

Revenue allocated to the remaining performance obligations under existing contracts as of March 31, 2022 that will be recognized as revenue in future periods was $98.9 million, of which we expect to recognize approximately $84 million in the nine months ending December 31, 2022 and most of the remainder in 2023.
We have no deferred incremental costs incurred to obtain or fulfill our construction contracts or other service revenues as of March 31, 2022 and December 31, 2021. We had credit loss recoveries on construction contracts receivable and unbilled construction revenue of $372,000 in the three months ended March 31, 2022 and $141,000 in the three months ended March 31, 2021.