Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 2136

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 4
Chunk 2136
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 the customer, and correspondingly, when performance obligations are satisfied for the related contracts.  For the years ended December 31, 2024, 2023 and 2022, consolidated revenue totaled approximately $12.3 billion, $12.0 billion and $9.8 billion, respectively.Contracts.  The Company derives revenue primarily from construction projects performed under: (i) master service and other service agreements, which generally provide a menu of available services in a specific geographic territory that are utilized on an as-needed basis, and are typically priced using either a time and materials or a fixed price per unit basis; and (ii) contracts for specific projects requiring the construction and installation of an entire infrastructure system, or specified units within an infrastructure system, which may be subject to one or multiple pricing models, including fixed price, unit price, time and materials, or cost plus a markup.  Revenue derived from projects performed under master service and other service agreements totaled 41%, 40% and 51% of consolidated revenue for the years ended December 31, 2024, 2023 and 2022, respectively.Revenue from contracts for specific projects, as well as for certain projects pursuant to master and other service agreements, is typically recognized over time using the cost-to-cost measure of progress, which is an input method.  Such contracts provide that the customer accept completion of progress to date and compensate the Company for services rendered.For certain master service and other service agreements, revenue is recognized at a point in time, primarily for install-to-the-home and certain other wireless services in the Company’s Communications segment.  Point in time revenue is recognized when the work order has been fulfilled, which, for the majority of the Company’s point in time revenue, is the same day it is initiated.  Point in time revenue accounted for approximately 2% of consolidated revenue for both the years ended December 31, 2024 and 2023, and totaled approximately 4% for the year ended December 31, 2022.Contract costs include all direct materials, labor, equipment and subcontracted costs, as well as indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and the operational costs of capital equipment.  Cost estimation processes used for recognizing revenue over time under the cost-to-cost method require management to make significant assumptions and judgments.  Total transaction price and cost estimation processes are based primarily on the professional knowledge and experience of the Company’s project managers, operational and financial professionals, and other professional expertise