Wednesday, 28 June 2017 11:12

TechnologyOne gets second notice over Brisbane contract


The Brisbane City Council has issued a second show-cause notice to tech services firm TechnologyOne over a $50 million, 10-year contract to replace 13 outdated customer service systems.

The contract was awarded in June 2015 but earlier this year the mayor of Brisbane said he would seek to have it renegotiated as the rollout would end up 18 months behind schedule and $60 million over budget.

TechnologyOne was issued the first show-cause notice by the council on 2 May and responded on 29 May with what it says is a detailed response. On 20 June, the council informed TechnologyOne that it would not be terminating the contract.

TechnologyOne issued a show-cause notice to the council on 309 May over the non-payment for work on two phases of the project, Milestones 7 and 8. Payment of $750,000 was received on 23 June, remedying this issue.

The second show-cause notice issued by the council was on 26 June and, according to TechnologyOne, "covers many of the same issues in the May Notice to Show Cause that BCC did not act upon. This Notice also ignores TechnologyOne’s bona fide requests for extensions of time under the Contract due to BCC’s conduct".

TechnologyOne said it had recommended expedited arbitration to resolve these issues. "BCC has not accepted expedited arbitration which would allow these issues to be resolved and the project put back on track," it said.

The company's executive chairman Adrian Di Marco said: "Our attempts to resolve this dispute and reach a pragmatic and mutually beneficial arrangement with BCC continue. However, BCC appears to be committed to resolution by way of legal proceedings rather than commercial negotiation.

“As a legal tactic, BCC is now insisting that TechnologyOne configure a system for BCC strictly in accordance with the 2015 Contract that does not meet BCC’s current business requirements.

"BCC’s business processes have changed since 2015. In October 2016, BCC provided updated business process requirements that expanded the scope of the project. BCC have refused to issue a contract amendment and TechnologyOne is being asked to now configure a system for BCC that does not reflect BCC’s current business processes.

“This demonstrates that BCC is no longer genuinely committed to working with TechnologyOne to deliver this project. BCC is engineering a situation where TechnologyOne is unable to perform against the contract.

“Given these facts, attempted termination of the contract by BCC continues to be the most probable outcome.”


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Sam Varghese

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.



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