Unreasonable warranty time periods in ICT or outsourcing contracts

Unreasonable time periods contracts

A recent court case highlights that warranties for work performed in ICT or outsourcing contracts must be reasonable in terms of the time they apply. In the J Murphy & Sons Limited v Johnson Precast Limited case, Clause 14(i) was a warranty of good workmanship, materials and compliance with standards. Clause 14(ii) was different and was described by the judge as being ‘draconian in its effect’. It read as follows:

Read more...

Your Service Provider’s Duty to Warn

duty to warn

Have you ever been hit by unforeseen cost increases to your contracts? Did you feel your service provider really should have known about these costs and warned you about them in advance? Have you gone on to pay these costs? A recent court case judgment has re-enforced the ‘duty to warn’ that professional service providers (such as strategic/outsourcing/technology partners) have to their clients. The case, J Murphy & Sons Limited

Read more...

Can you contractually rely on the professional advice from your service provider?

advice in the contract

A judgment from a recent court case suggests you can now contractually rely on the advice from your service provider – even if the contract terms try to exclude it. Standard contracts provided by the vendor will often try to exclude its responsibilities as a specialist. You might be familiar with the following examples: ‘The seller hereby excludes any warranty that this service is fit for its intended purpose’ ‘The seller

Read more...

Is your Vendor Threatening to Quit your Project unless you Pay them more?

Low offer vendor contract

A new court ruling will make them think again… DE BEERS v ATOS ORIGIN [2010] Have you ever had this happen to you? A vendor commences a major project – perhaps for a large software initiative, service commissioning or outsourcing. Part way through – say 6-12 months and they complain that you keep changing your mind (although you are pretty sure you don’t) about what you wanted; or perhaps they say

Read more...

How to get your Channel Shift Strategy to cut your Costs, Fast

Allan Watton SOCITM Channel Shift

One of my roles is as Deputy Chairman of SOCITM Insight, the local authority IT management think tank. SOCITM has just published its annual Better Connected survey. In it, SOCITM complain Councils still don’t embrace the digital route when it comes to engaging with the public or delivering public services. What is going on? We all know, and have known for years, that movement from face-to-face services to digital delivery has achieved modest

Read more...

Key Changes to Public Sector Procurement Rules

Procurement Regulations Free Guide

Revised EU public procurement regulations came into effect on the 1st October 2011, yet I wonder how many of you responsible for procurement within your organisation are aware of these changes? And if you have had visibility of these changes, then the official documentation is not entirely clear. These changes apply to all the public sector, utility sector and recent defence and security public contracts. It is important to be aware of

Read more...

NHS IT Project Transformation – failure or journey?

NHS IT Project

Yet again, just last week the Government confirmed the scrapping of another major IT project; £12bn of taxpayers’ money down the drain. But is it a relief for the NHS which needs to save some £20bn? Organisations need manageable change, with buy-in from all parties concerned. It is hoped that a move to smaller, regionalised IT programmes will provide the building blocks needed to put the NHS back on a

Read more...

Oracle ERP System – serious problems hit profits and waste of tax payer money

Oracle ERP System

A £41m Oracle enterprise resource planning project, run by Deloitte and undertaken by Pennsylvania’s Liquor Control Board (PLCB’s) has been marred by inflated costs, staffing woes and operational problems, according to a damning report by the state’s auditor general. While PLCB’s sales rose between 2008 to 2010 financial periods, net profits from store operations dropped by 47%. The audit states “problems with the Oracle ERP system appear to be one of

Read more...

Government ripped off by IT giants – IT projects are too expensive and not fit for purpose

Government IT Projects

The report Government and IT- “A Recipe For Rip-Offs”: Time For A New Approach published by the Public Administration Committee states that a complete overhaul of the entire system of procurement is needed to eliminate the ‘cartel’ of big IT firms and obscene amounts of public money being wasted on ineffectual IT schemes. Prime Minister David Cameron vowed to end the era of vast Government IT projects that he said had dominated

Read more...

Partnership for Schools finally axed

Free BSF ICT Services Guide

We read that Partnership for Schools (PfS) the government quango that was in charge of the £55 billion Building Schools for the Future (BSF) initiative will be abolished by April 2012. Considering the BSF programme was scrapped in Summer 2010 this one has run for longer than many. It seems that patience finally ran out when PfS seemed serially unable to publish correct lists about which Schools would remain in

Read more...