Company: BWMN
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001628280-25-012365
Chunk: 123

Company: Bowman Consulting Group Ltd.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1A
Chunk 123
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 our contracts at any time prior to their completion and, if we do not replace them, we may suffer a decline in revenue. 

Most government contracts may be modified, curtailed, or terminated by the government either at its discretion or upon the default of the contractor. If the government terminates a contract at its discretion, then we typically can recover only costs incurred or committed, settlement expenses and profit on work completed prior to termination, which could prevent us from recognizing all the potential revenue and profits from that contract. In addition, for some assignments, the government may attempt to “insource” the services to government employees rather than outsource to a contractor. If a governmental agency terminates a contract due to our default, we could be liable for excess costs incurred by the governmental agency in obtaining services from another source. 

Because we provide services to municipalities and other public agencies, we are more susceptible to the unique risks associated with government contracts. 

A substantial amount of our revenue is derived from our work for municipalities and other public agencies. Consequently, we are exposed to certain risks associated with public agency and government contracting, any one of which can have a material adverse effect on our business, results of operations and financial condition. These risks include: 

•The ability of the public agency to terminate the contract with 30 days’ prior notice or less;

•Changes in public agency spending and fiscal policies which can have an adverse effect on demand for our services; 

•Contracts that are subject to public agency budget cycles, and often are subject to renewal on an annual basis;

•The often wide variation of the types and pricing terms of contracts from agency to agency;

•The difficulty of obtaining change orders and additions to contracts; and

•The requirement to perform periodic audits as a condition of certain contract arrangements.

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Legislation, policy, rules, or regulations may be enacted that limit or change the ability of state, regional or local agencies to contract for our privatized services. Such changes would affect our ability to obtain new contracts and may decrease the demand for our services. 

Legislation is proposed periodically that attempts to limit the ability of governmental agencies to contract with private consultants to provide services. Should such changes occur and be upheld, demand for our services may be materially adversely affected. For each of the years ended December 31, 2024 and 2023, approximately 27% and 21% of our gross revenue was derived from services performed under contracts with governmental agencies, respectively. While attempts at such legislation have failed in