14 Construction contracts
Contracts in progress at the balance sheet date:
| 2008 £m |
2007 £m |
|
|---|---|---|
| Amounts due from construction contract customers | 189.2 | 209.1 |
| Amounts due to construction contract customers | (78.3) | (67.4) |
| Carrying amount at end of year | 110.9 | 141.7 |
| Contract costs incurred plus recognised profits less recognised losses to date | 5,158.5 | 9,979.0 |
| Less: progress billings | (5,047.6) | (9,837.3) |
| Net work in progress | 110.9 | 141.7 |
Contract costs incurred plus recognised profits less recognised losses to date and progress billings include contract activity which the Group has not recognised in the income statement as it occurred prior to acquisition.
Amounts recoverable on construction contracts are stated at cost plus the profit attributable to that contract, less any impairment losses. Progress payments for construction contracts are deducted from amounts recoverable. Payments in advance on construction contracts represent amounts received in excess of revenue recognised on construction contracts.
At 31 December 2008 retentions held by customers for contract work amounted to £59.6m (2007: £66.2m).
None of the Group’s amounts due from construction contract customers’ balances are past due at the reporting date (2007: £nil). The Group does not hold any collateral over these balances.