23 Contract assets and contract liabilities
The contract assets comprise the right to payment from construction contracts with customers as well as from project developments for the work performed by the reporting date. If the advances received exceed the payment rights, presentation is made under contract liabilities.
The contractual balances are comprised as follows:
T€ | 31.12.2024 | 31.12.2023 |
Contract assets (gross) | 7,098,423 | 7,643,852 |
Advances received | -5,861,328 | -6,360,348 |
Contract assets | 1,237,095 | 1,283,504 |
Contract liabilities (gross) | -8,976,428 | -8,379,871 |
Advances received | 10,516,159 | 9,715,708 |
Contract liabilities | 1,539,731 | 1,335,837 |
In the 2024 financial year, revenue was recognised in the amount of T€ 1,161,336 (2023: T€ 1,101,805) that had been included under contract liabilities at the beginning of the financial year.
As at 31 December 2024, there are unsatisfied performance obligations from construction contracts with customers and project developments (order backlog) in the amount of T€ 20,671,871 (2023: T€ 18,938,369). The recognition of revenue from these performance obligations is expected with T€ 10,185,926 (2023: T€ 9,968,076) in the following financial year and with T€ 10,485,946 (2023: T€ 8,970,293) in the next four financial years.
In the reporting period, no costs of contract initiation or contract satisfaction were capitalised as separate assets.
As is customary in the industry, the customer has the contractual right to retain part of the total amount of the invoice. As a rule, however, these retentions are redeemed by collateral (bank or group guarantees).
With regard to the contract assets and liabilities, we refer to our notes in the section “Estimates - (c) Recognition of revenue from construction contracts with customers and project developments”.