Opening of Bids - 2023 Guardrail Install. & Replacement Proj No. 122-043R - Laporte Construction Co.

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LAPORTE CONSTRUCTION COMPANY, INC. AND NEW REGIME, LLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOVEMBER 30, 2022 AND 2021 9 modifications/change orders in which the scope of modification has been approved, but the price has not been determined or approved) are accounted for as changes in estimates in the current period, but limited to an amount that will not result in a significant reversal of revenue recognized to date. Contract Assets and Liabilities Contract assets represent revenues recognized in excess of amounts billed to customers, plus retainage receivable. Contract liabilities represent amounts billed to customers in excess of revenues recognized. Practical Expedients If LaPorte has a right to consideration from a customer in an amount that corresponds directly with the value of LaPorte’s performance completed to date (such as a contract in which LaPorte bills a fixed amount for each hour of service provided), LaPorte recognizes revenue in the amount to which it has a right to invoice for services performed. LaPorte does not adjust the contract price for the effects of a significant financing component if LaPorte expects, at contract inception, that the period between when LaPorte transfers a service to a customer and when the customer pays for that service will be one year or less. LaPorte has made an accounting policy election to exclude from the measurement of the transaction price all taxes assessed by governmental authorities that are collected by LaPorte from its customers. LaPorte has also made an accounting policy election to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. Warranties LaPorte generally provides limited warranties for work performed under its construction contracts. The warranty periods typically extend for a limited duration following substantial completion of LaPorte’s work on a project. Historically, warranty claims have not resulted in material costs incurred, and any estimated costs for warranties are included in the individual project cost estimates. Balance Sheet Classification LaPorte includes in current assets and liabilities retainage amounts receivable and payable under construction contracts, which may extend beyond one year. A period of one year from the balance sheet date is used as the basis for classifying all other current assets and liabilities.