ASG sues Victoria over cancelled contract


By Dylan Bushell-Embling
Tuesday, 07 June, 2016


ASG sues Victoria over cancelled contract

Perth-based IT service provider ASG Group is taking the Victorian government to court over the decision to terminate a contract to build a new business management system.

The company announced in a market update that it has initiated legal proceedings against the state of Victoria over the decision by the Victorian Department of Environment, Land, Water and Planning to terminate an application implementation project.

The department advised ASG that it has taken the strategic decision to adopt a whole-of-government model for its enterprise resource planning (ERP) systems instead.

ASG asserted that its contract obliges the state to indemnify ASG for liabilities and expenses as a result of the contract termination, but that negotiations with the department over the terms of the settlement have failed.

The company does not expect the legal action to have an adverse material impact on its profitability and has maintained its guidance of revenue in the range of $185 million to $190 million in FY16.

ASG reported $88.2 million in revenue for the first half of the financial year, up 12.6% year-on-year.

Image courtesy of blink+ under CC

Related Articles

ACMA publishes nbn migration standards

ACMA has released new industry standards requiring nbn providers to provide more accurate...

Cicada hosts EU trade delegation

A European Union (EU) trade delegation has been hosted by Australian super incubator Cicada...

Telstra should rethink job cuts, says Palaszczuk

Queensland's Premier has called on Telstra to rethink plans that will see 8000 workers lose...


  • All content Copyright © 2018 Westwick-Farrow Pty Ltd