Brisbane City Council (BCC) has consummated a agreement with TechnologyOne, claiming a association unsuccessful to broach an IT systems deputy module that it formerly pronounced blew-out in cost by some AU$60 million.
In a statement, BCC pronounced it suggested TechnologyOne it was pulling a pin as a outcome of a Brisbane-based company’s “persistent and ongoing agreement breaches, poignant and unsuitable delays in surpassing a contract, and a finish detriment of faith in a company’s ability to broach a deputy complement for council’s IT systems”.
As a result, BCC pronounced it will be seeking indemnification and, in suitability with a contract, will be referring a matter to settlement for determination.
TechnologyOne was awarded a AU$122 million agreement to broach a Local Government Systems (LGS) Program by BCC behind in Jun 2015.
However, during a start of a year, Brisbane Lord Mayor Graham Quirk destined legislature officers to renegotiate a agreement after training of an 18-month check in deployment and a intensity AU$60 million cost blowout.
BCC had stopped creation payments to TechnologyOne between Oct and May, after it was motionless a association indispensable to broach “significant” milestones first. However, a legislature paid AU$750,000 in Jun after being released a crack notice by TechnologyOne in May for disaster to compensate invoices.
Quirk gave a six-month deadline for TechnologyOne to yield an excusable IT complement to legislature after it claimed a strange due “go live” date was behind by 8 months and vicious plan milestones had unsuccessful to be delivered.
“This preference is about a effective use of ratepayers’ income and ensuring that council’s core services are not compromised,” Quirk pronounced on Friday.
“In a past 6 months, legislature offering TechnologyOne a event to remodel a agreement and met with their member on many occasions to support a association to get a plan behind on track.
“TechnologyOne has for a series of months been creation open claims that in council’s perspective are dubious and inaccurate.”
In June, a legislature slapped TechnologyOne with a second notice to uncover cause — a initial was released in May — as to since a legislature should not cancel a agreement to broach a LGS.
The latest notice minute element breaches of a agreement that a legislature alleges have been committed by TechnologyOne, with a legislature orator revelation ZDNet final month that it would reassess a position after a craving program organisation responded.
In response to a second notice to uncover cause, published on Monday, TechnologyOne pronounced it was scheming to slap BCC with a AU$50 million indemnification claim.
“Unfortunately, TechnologyOne did not take a event to work constructively with legislature to remodel a agreement and instead has sought to censure legislature for a possess failings, by a emanate of dubious open statements,” BCC pronounced in a matter on Friday.
“TechnologyOne has never worked with a city or internal supervision a distance and scale of Brisbane and has struggled with a complexity of council’s operations.
“Based on what we have seen of a TechnologyOne system, this is a product still really many in development.”
In a matter on Friday, TechnologyOne pronounced BCC’s “wrongful termination” of a agreement was expected.
“TechnologyOne sees this as a certain step brazen for a business, as BCC was no longer honestly posterior a fortitude to a brawl since of reasons outward TechnologyOne’s control,” a association said.
“Given a agreement with BCC did not means TechnologyOne an effective resource to cancel a contract, now that a agreement has been consummated by BCC, TechnologyOne is means to pursue a matter in court, and during a same time redeploy a resources to constructive projects.”
Earlier this week, a Brisbane-based tech association hold organisation a explain that it is not in element crack of a patron agreement as purported by BCC, and rather a actions taken by BCC — such as portion TechnologyOne with 75 authorised letters in a final 6 months — has prevented a LGS agreement from being completed.
“Though a Lord Mayor has on many occasions publicly settled that a plan indispensable to be reformed, and that he was committed to doing this, BCC has taken no stairs to grasp this, and has hindered TechnologyOne from doing so,” executive authority Adrian DiMarco said.
“TechnologyOne during all times stays ready, willing, and means to finish a BCC contract.”
BCC pronounced a “continual slippage” from a IT organisation was unsuitable and that it lacks certainty that a many new deadline would be met.
Update during 16:56pm AEST, Jul 28: Added matter from Technology One.