The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

The Company uses estimates to determine a provision for credit losses on its accounts receivable, contingent consideration, litigation, medical claims, vacation, goodwill impairment, if any, equity compensation, the tax rate applied, and the valuation of certain assets and liability accounts. In addition, the Company reviews its estimated costs to complete a contract and adjusts them as necessary. These estimates can be significant to the Company's operating results and financial position. The estimates are based on various factors, including current and historical trends and other pertinent industry and regulatory authority information. Management regularly evaluates this information to determine if it is necessary to update the basis for its estimates and to adjust for known changes.

The Company has risk-participation arrangements for workers' compensation and healthcare insurance. The amounts included in the Company’s costs related to this risk participation are estimates and may vary based on changes in assumptions, the Company’s claims experience, or the providers included in the associated insurance programs.

The Company can be affected by a variety of factors, including uncertainty regarding the general economy's performance, competition, demand for the Company’s services, adverse litigation and claims, and the hiring, training, and retention of key employees.

Fair Value of Financial Instruments

The Company’s carrying value of financial instruments, consisting primarily of accounts receivable, transit accounts receivable, accounts payable, accrued expenses, transit accounts payable, and borrowings under the revolving credit facility, approximates their fair value due to their liquidity, short-term nature, and the revolving credit facility’s variable interest rate. The Company does not have derivative instruments in place to manage risks related to foreign currency fluctuations in its foreign operations or to interest rate changes.

The Company re-measures the fair value of the contingent consideration at each reporting period, and any change in the fair value from either the passage of time or events occurring after the acquisition date is recorded in earnings in the accompanying consolidated statement of operations.