Contractors are suffering huge cost pressures from material price increases and the lack of available skilled labour. Contractors will submit claims whether they are entitled to or not to try to claw back profits or get out of a loss. So this development is not surprising. Usually, the initial claim number is overinflated and both parties meet at a final number further down the track. Looking at STA's recent cash flow update and their recent sale, this amount should be manageable. No need to panic.
Ann: Contractor Dispute with TMM Group (Operations) Pty Ltd, page-4
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