Quarterly report pursuant to Section 13 or 15(d)

Construction Contract and Other Service Revenues

v3.23.1
Construction Contract and Other Service Revenues
 3 Months Ended
Mar. 31, 2023
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,
2023 2022
Construction contract revenue:
Guaranteed maximum price $ 6,743  $ 47,923 
Firm fixed price 5,879  3,444 
Cost-plus fee 2,709  1,306 
Other 489  527 
$ 15,820  $ 53,200 
The table below reports construction contract and other service revenues by service type (in thousands):
For the Three Months Ended March 31,
2023 2022
Construction contract revenue:
Construction $ 14,725  $ 52,569 
Design 606  104 
Other 489  527 
$ 15,820  $ 53,200 

We recognized an insignificant amount of revenue in the three months ended March 31, 2023 and 2022 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,
2023 2022
Beginning balance $ 7,618  $ 7,193 
Ending balance $ 6,786  $ 4,165 

Contract assets 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,
2023 2022
Beginning balance $ 22,331  $ 22,384 
Ending balance $ 20,619  $ 29,389 

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,
2023 2022
Beginning balance $ 2,867  $ 2,499 
Ending balance $ 3,399  $ 2,534 
Portion of beginning balance recognized in revenue during period $ 77  $ 26 

Revenue allocated to the remaining performance obligations under existing contracts as of March 31, 2023 that will be recognized as revenue in future periods was $61.5 million, of which we expect to recognize approximately $50 million in the nine months ending December 31, 2023 and the remainder in 2024.

We have no deferred incremental costs incurred to obtain or fulfill our construction contracts or other service revenues as of March 31, 2023 and December 31, 2022. We had credit loss recoveries on construction contracts receivable and unbilled construction revenue of $65,000 in the three months ended March 31, 2023 and $372,000 in the three months ended March 31, 2022.