Brisbane's dispute with TechnologyOne heading to court
Brisbane City Council (BCC) has followed through with threats to terminate its local government services contract with TechnologyOne and has filed a claim seeking loss and damages of over $50 million.
In response, TechnologyOne announced it will proceed with a wrongful termination lawsuit, with plans to file a counterclaim worth over $50 million.
In a statement, TechnologyOne Executive Chairman Adrian Di Marco said the development is a positive step forward because the contract did not provide the company with an effective mechanism to terminate the contract. Now the contract is voided, the company will be free to pursue the matter in court while diverting its resources to constructive projects, he said.
“I personally find BCC’s behaviour both disingenuous and unprofessional. BCC had made it clear through both its actions and its statements that it did not want to complete this project, and was endeavouring to engineer a termination of the contract for breach,” he said.
“TechnologyOne at all times remained ready, willing and able to complete the BCC contract ... If BCC lawyers had not assumed control of this project in January, and common sense had prevailed, we would still be on track to meet the contracted ‘go-live date’.”
The $122 million local government services contract was derailed after an independent review found it to be 18 months behind schedule and more than $60 million over budget. Following the publication of the audit, the council stopped paying TechnologyOne and Brisbane’s Lord Mayor Graham Quirk publicly criticised the company over its handling of the contract.
But Di Marco said the company found it difficult to fulfil its obligations under the contract due to alleged poor governance and business processes at the BCC’s end.
“This matter should never have been put in the public arena by the Lord Mayor. BCC should have first followed the remedial processes allowed for in the contract away from the public spotlight. This would have allowed us to find a commercial resolution,” he said.
“The Lord Mayor’s public announcement in January put both organisations on a collision course. I also remind shareholders that at the time of the Lord Mayor’s announcement there was no dispute between BCC and TechnologyOne, and both parties were still working to the contracted go-live date. TechnologyOne was at the time caught by surprise by the Lord Mayor’s announcement and remains bewildered and disappointed by his actions.”
He also pointed out that the council is still refusing to release the findings of a report from the Lord Mayor’s independent local government services review committee.
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