Revenue and cost matching concept

Background:
In Jan 2018, the Company (ABC) enter into a contract with government to provide a technical consultancy service. The service will consist of 2 part, in total of 14 months. Part 2 can only be started when part 1 is completed.

Breakdown:
Part 1 building consultancy, budget of 1 million and timeframe of 6 months.
Part 2 system consultancy, budget of 2 million and timeframe of 8 months.

However, due to the delay from government, the construction of building did not complete within timeframe of 6 months. Hence, Company ABC’s building consultancy service also unable to complete within the agreed 6 months according to contract, and the 1 million has fully utilised. (But, overall contract still has remaining 2 million)

As Company ABC has the obligation to deliver the service in part 2, but it can only be started when part 1 is complete. Hence, the Company continue to provide Part 1 service to government until Dec 2018, and the Part 1 is finally completed in Dec 2018.

As at June 2018, due to the Part 1 timframe has expired and budget has been fully utilised, the Company decided not to recognize revenue until they receive the LOA of extention agreement from government. But the Company recognize the COS inccured in 2018.

In Feb 2019, the Company obtain the LOA of extention agreement from the government. Hence, the Company recognize the Part 1 revenue in 2019.

My questions:

1) The consultancy services were in 2018, but due to no extension of contract, is it correct to not recognize revenue in 2018? In this case, collection of consideration is uncertain, but it has the commercial substance to continue providing service.

2) Now the Company revenue and COS are not recognizing in the same accounting period (not followed matching concept). Can that is possible? If it is correct to recognize revenue in 2019, hence where should we account the COS in 2018?