Ann: Response to Civmec Legal Action, page-49

I can only assume that AJM used the standard "set-off" clauses to enforce the LD provisions at the time of granting practical completion. Enforcing LDs would have triggered numerous counterclaims by CVL, and subsequent responses by AJM..... until it went to the dispute resolution officers under each contract. Which would take another couple of months - until the dispute went into arbitration by a third party (would love to know the outcome of arbitration), until it ended up in court - where it is apparently now heading.

All of this takes months/years, before it ends up in court. Standard time bars in contracts allows for maximum time to respond, and depending how you argue your case, it could be beneficial to wait 14 days (if that is the max) to respond, rather than respond on day 1 - if it is in your interest to create a protracted dispute.

The timeframe does not surprise me. What is disappointing (and I am not an accountant) is why AJM did not allow for this provision on their financial statements.