The multi-million dollar battle over who was to blame for the Berkeley debacle is grinding towards a September hearing.

Pro-Active Management Systems adviser Julian Hall said Government filed a deadline day defence last week in reply to the construction company which is suing for wrongful termination from the school building contract.

Government is counter-suing and Mr. Hall said he expected Pro-Active to serve its reply within the next ten days rather than use the full four weeks allotted.

He told : ?We are well on track towards September preliminary hearings.?

Government?s submission helped identify areas of common ground, said Mr. Hall, who added he was hopeful an out of court settlement could be reached to avoid the expense of arbitration.

However, he added: ?It depends on willing from both sides.

?There is no suggestion of settlement talks at this stage.?

Pro-Active was awarded the $68-million secondary school contract in 2001 with a completion date of September, 2003.

The firm was given a year?s extension and another $13 million in February, 2004 but they were sacked in August that year with the building more than 80 percent complete, according to both sides.

Government blamed the company for delays while Pro-Active say constant design changes scuppered plans.