Story image

TechnologyOne threatens $50m lawsuit as battle with Brisbane City Council continues

25 Jul 2017

TechnologyOne has fired another salvo in the ongoing battle between the enterprise software provider and Brisbane City Council, threatening to sue for more than $50 million in damages.

The threat of a $50 million-plus lawsuit follows Brisbane City Council issuing a second notice to show cause, filed last month.

In a statement to the ASX, TechnologyOne alleges that Brisbane City Council has endangered the successful completion of the project through its actions and inactions, and that if the council proceeds with a wrongful termination, TechnologyOne ‘will immediately commence proceedings for a $50+ million damages claim’.

“TechnologyOne has offered to BCC that if they no longer wish to proceed with the project, TechnologyOne is open to BCC paying all outstanding invoices and to separate company, which would be substantially less than the cost of a long and drawn out court case that exposes Brisbane rate payers to a $50+m damages claim,” TechnologyOne says.

The battle, which centres around a $122 million project to deliver a new regulatory system upgrading 13 IT systems, flared publicly in January after Brisbane City Council’s Lord Mayor went public. At the time he claimed the project was facing a big delay and potential $60 million blowout.

The two parties have been trading legal blows – in the form of Notices to Show Cause – since then.

Last month TechnologyOne said it’s Notice to Show Cause for failure to pay invoices for milestones reached had resulted in BCC paying $750,000 for those particular milestones.

However, Brisbane City Council then filed a second Notice to Show Cause.

TechnologyOne says BCC action and inactions are causing the project to proceed more slowly than planned and are preventing a compliant system being implemented and operating by the contracted date.

Among the issues cited by the vendor are ‘significant’ addition scope causing delays of five-plus months, the council’s December 2016 instruction not to proceed causing five-plus months delay, and ‘unreasonable and bureaucratic conduct’ causing further delays.

Adrian Di Marco, TechnologyOne executive chairman, says “TechnologyOne at all times remains ready, willing and able to complete the BCC contract.

“TechnologyOne as the leading supplier to over 300 councils in Australia, is uniquely placed to provide a compelling value proposition to the rate payers of Brisbane,” Di Marco says.

“If BCC lawyers had not assumed control of this project after the Lord Mayor’s inaccurate press conference in January, and common sense had prevailed, we would still be on track to meet the contracted go live date.”

GitHub launches fund to sponsor open source developers
In addition to GitHub Sponsors, GitHub is launching the GitHub Sponsors, GitHub will match all contributions up to $5,000 during a developer’s first year in GitHub Sponsors.
Check Point announces integration with Microsoft Azure
The integration of Check Point’s advanced policy enforcement capabilities with Microsoft AIP’s file classification and protection features enables enterprises to keep their business data and IP secure, irrespective of how it is shared. 
Why AI will be procurement’s greatest ally
"AI can help identify emerging suppliers, technologies and products in specific categories."
Are AI assistants teaching girls to be servants?
Have you ever interacted with a virtual assistant that has a female-based voice or look, and wondered whether there are implicitly harmful gender biases built into its code?
Google 'will do better' after G Suite passwords exposed since 2005
Fourteen years is a long time for sensitive information like usernames and passwords to be sitting ducks, unencrypted and at risk of theft and corruption.
Hackbusters! Reviewing 90 days of cybersecurity incident response cases
While there are occasionally very advanced new threats, these are massively outnumbered by common-or-garden email fraud, ransomware attacks and well-worn old exploits.
Data#3 to exclusively provide MS licences to WA Government
The technology services provider has won two contracts with the Western Australia Government, becoming its sole Microsoft licence provider.
Why cash is no longer king in Australia
Australia is leading the way in APAC for granting credit on B2B transactions.