Construction Contract and Other Service Revenues
We disaggregate in the table below our construction contract and other service revenues by compensation arrangement as we believe it best depicts the nature, timing and uncertainty of our revenue (in thousands):
| | | | | | | | | | | | | | | | | |
| For the Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Construction contract revenue: | | | | | |
| FFP | $ | 18,925 | | | $ | 36,073 | | | $ | 30,846 | |
| GMP | 15,072 | | | 32,002 | | | 18,178 | |
| Cost-plus fee | 6,924 | | | 5,875 | | | 9,843 | |
| Other | 1,153 | | | 1,600 | | | 1,312 | |
| $ | 42,074 | | | $ | 75,550 | | | $ | 60,179 | |
We derived 98% of our construction contract revenue from the USG in 2025 and 2024 and 88% in 2023.
We recognized an insignificant amount of revenue in 2025, 2024 and 2023 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 Years Ended December 31, |
| 2025 | | 2024 |
| Beginning balance | $ | 8,828 | | | $ | 10,500 | |
| Ending balance | $ | 4,036 | | | $ | 8,828 | |
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 Years Ended December 31, |
| 2025 | | 2024 |
| Beginning balance | $ | 17,050 | | | $ | 15,086 | |
| Ending balance | $ | 17,925 | | | $ | 17,050 | |
Contract liabilities are included in other liabilities on our consolidated balance sheets. Changes in contract liabilities were as follows (in thousands):
| | | | | | | | | | | |
| For the Years Ended December 31, |
| 2025 | | 2024 |
| Beginning balance | $ | 2,016 | | | $ | 4,176 | |
| Ending balance | $ | 2,183 | | | $ | 2,016 | |
| Portion of beginning balance recognized in revenue during the year | $ | 228 | | | $ | 2,290 | |
Revenue allocated to the remaining performance obligations under existing contracts as of December 31, 2025 that will be recognized as revenue in future periods was $26.7 million, all of which we expect to recognize in 2026.
We have no deferred incremental costs incurred to obtain or fulfill our construction contracts or other service revenues as of December 31, 2025 and 2024. Credit loss expense or recoveries on construction contracts receivable and unbilled construction revenue were insignificant in 2025, 2024 or 2023.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.