TechnologyOne settles fight with Brisbane City Council

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TechnologyOne settles fight with Brisbane City Council
Adrian Di Marco, TechnologyOne

TechnologyOne has quietly settled its dispute with Brisbane City Council, 12 months after the fracas went public.

The Brisbane-based software firm declined to reveal the terms of the settlement, saying they were confidential. TechOne did say that the settlement wouldn't have an impact on its earnings.

"In good faith, both parties have now resolve their differences on a without fault basis," TechOne told shareholders.

The quiet settlement is a far cry from previous statements made by TechOne, who said in July that it would claim $50 million in damages against the council days after its contract was terminated. BBC said it would also pursue damages against TechOne.

TechOne won the local government systems (LGS) contract in 2015 and was tasked with replacing 13 legacy systems for the council.

The dispute came to light in January when Brisbane lord mayor Graham Quirk put TechOne on notice, telling media that the project was 18 months late and $60 million over budget, giving the company a six-month deadline to finish the project.

Quirk claimed that TechOne struggled to handle the complexity of the council's needs, while TechOne argued that it had already completed the necessary work but BCC kept increasing the scope of the project.

"Though the lord mayor has on many occasions publicly stated that the project needed to be reformed, and that he was committed to doing this, BCC has taken no steps to achieve this, and has hindered TechnologyOne from doing so," TechOne executive chairman Adrian Di Marco said at the time.

"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.'"

BCC cancelled the contract in July, prompting TechOne and BCC to begin legal proceedings, each claiming $50 million in damages.

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