13 . COMMITMENTS AND CONTINGENCIES Legal Matters From time to time we are a party to various claims, lawsuits and other legal proceedings that arise in the ordinary course of business. We maintain various insurance coverages to minimize financial risk associated with these proceedings. None of these proceedings, separately or in the aggregate, are expected to have a material adverse effect on our financial position, results of operations or cash flows. With respect to all such pr oceedings, we record reserves when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. We expense routine legal costs related to these proceedings as they are incurred. The following is a discussion of our significant legal matters: USAMRIID Claim On December 6, 2017, IES Commercial, Inc. filed suit in the United States District Court of Maryland in the matter USA for the use and benefit of IES Commercial, Inc. and IES Commercial, Inc. v. Manhattan Construction Co., Torcon, Inc., Manhattan Torcon A Joint Venture, Federal Ins. Co., Fidelity &amp; Deposit Co. of Maryland, Zurich American Ins. Co., and Travelers Casualty &amp; Surety Co . This suit related to a large project (USAMRIID) which has been ongoing since 2009 , having originally bee n scheduled for completion in early 2013 with a contract value of approximately $ 61,146 , subject to additions or deductions. The Company had sought in the suit approximately $ 25 ,500 for claims incurred and expected to be incurred through completion of the project. On January 22, 2018, the defendants in this matter filed a motion to dismiss the suit, and on September 26, 2018, the District Court ruled on the motion, granting it in part and denying it in part. The ruling, were it to withstand an appeal, would likely have reduced the size of the Companys estimated damages claim by approximately 50% . Following mediation in September 2018, the parties entered into a memorandum of agreement to settle all claims brought in the suit, and entered into a formalized settlement agreement on December 21, 2018. IES moved to dismiss the case on December 28, 2018. Pursuant to the settlement agreement, the parties have agreed that in exchange for IES Commercial, Inc.s dismissal of the suit and completion of a limited scop e of subcontracting work, as well as mutual releases and parent guaranties by the parties, among other items, MTJV will make $ 2,500 in cash payments to IES Commercial, Inc., including $ 1,000 up front and $ 1,500 contingent upon completion of the remaining w ork, less an agreed credit amount of $ 150 in connection with a pending change order. In January 2019, we received the initial $ 1,000 . The Company has not made any material change to the charge it recorded the quarter ended September 30, 2018, in connectio n with this claim. At December 31, 2018, based on our most current revised cost estimates, the Company estimates this project to be 99% complete . Risk-Management We retain the risk for workers compensation, employers liability, automobile liability, construction defects, general liability and employee group health claims, as well as pollution coverage, resulting from uninsured deductibles per accident or occurrence which are generally subject to annual aggregate limits. Our general liability program provides coverage for bodily injury and property damage. In many cases, we insure third parties, including general contractors, as additional insur eds under our insurance policies. Losses are accrued based upon our known claims incurred and an estimate of claims incurred but not reported. As a result, many of our claims are effectively self-insured. Many claims against our insurance are in the form o f litigation. At December 31, 2018 , and September 30, 2018 , we had $ 5,931 and $ 6,202 , respectively, accrued for self-insurance liabilities. We are also subject to construction defect liabilities, primarily within our Residential segment. As of December 31, 2018 , and September 30, 2018 , we had $ 154 and $ 171 , respectively, reserved for these claims. Because the reserves are based on judgment and estimates and involve variables that are inherently uncertain, su ch as the outcome of litigation and an assessment of insurance coverage, there can be no assurance that the ultimate liability will not be higher or lower than such estimates or that the timing of payments will not create liquidity issues for the Company. Some of the underwriters of our casualty insurance program require us to post letters of credit as collateral. This is common in the insurance industry. To date, we have not had a situation where an underwriter has had reasonable cause to effect payment under a letter of credit. At December 31, 2018 , and September 30, 2018 , $ 6,351 and $ 6,101 , respectively, of our outstanding letters of credit was utilized to collateralize our insurance program. Surety As of December 31, 2018 , the estimated cost to complete our bonded projects was approximately $ 60,948 . We evaluate our bonding requirements on a regular basis, including the terms offered by our sureties. We believe the bonding capacity presently provided by our current sureties is adequate for our current operations and will be adequate for our operations for the forese eable future. Posting letters of credit in favor of our sureties reduces the borrowing availability under our c redit facility Other Commitments and Contingencies Some of our customers and vendors require us to post letters of credit, or provide intercompany guarantees, as a means of guaranteeing performance under our contracts and ensuring payment by us to subcontractors and vendors. If our customer has reasonable cause to effect payment under a letter of credit, we would be required to reimburse our creditor for the letter of credit. At December 31, 2018 , and September 30, 2018 , $ 458 and $ 508 , respectively, of our outstanding letters of credit were to collateralize our vendors. From time to time, we may enter into firm purchase commitments for materials, such as copper or aluminum wire, which we expe ct to use in the ordinary course of business. These commitments are typically for terms of less than one year and require us to buy minimum quantities of materials at specific intervals at a fixed price over the term. As of December 31, 2018 , we had no such c ommitments.