Australian software firm TechnologyOne has warned Brisbane City Council (BCC) that it is willing to launch a damages claim worth at least $50 million following more project delays.\nIn January this year, the council said it would renegotiate a large government systems contract with the vendor after uncovering project delivery issues that could result in a cost blowout of $60 million. At the time, TechnologyOne said the delays were due to two factors: the council\u2019s decision to take it new generation product, and a substantial increase in scope.\nThe vendor also said that the majority of the project\u2019s estimated costs blowout had been entirely at the hands of the council.\nIn May, the BCC issued TechnologyOne with a \u2018notice to show cause\u2019. This gave the vendor 28 days to prove why it should keep the contract. On June 26, the BCC issued TechnologyOne with a second notice to show cause.\nIn a statement to the ASX on Monday morning, TechnologyOne said the June notice covers many of the same issues in the May notice, all of which BCC did not act upon. The second notice also ignored TechnologyOne\u2019s \u2018bona fide\u2019 request for extensions of time under the contract due to BCC\u2019s conduct.\nIn July, TechOne said it provided BCC with \u201can exhaustive response\u201d to the second notice to show cause. In its response, TechOne explained how BCC\u2019s actions and inactions are \u201ccausing the project to proceed more slowly than planned and are preventing a compliant system being implemented and operating by the contracted date.\u201d\nIn its ASX announcement today, TechOne said it continues to recommend expedited arbitration to resolve issues.\n\u201cBCC continues not to accept arbitration which would allow these issues to be resolved and the project put back on track,\u201d TechOne said. \u201cBCC has made it clear through both its actions and its statements that it does not want to complete this project, and is endeavouring to engineer a termination of contract for breach.\n\u201cTechnologyOne has now made it clear to BCC if they proceed with a wrongful termination, TechnologyOne will immediately commence proceedings for a $50m+ damages claim,\u201d the vendor said on Monday.\nHowever, TechOne said if the BCC no longer wanted to proceed with the project, it was open to the council paying all outstanding invoices and to part company.\nThe vendor said this would cost substantially less than the cost of a long drawn out court case that exposes Brisbane ratepayers to such a large claim.\nTechOne\u2019s executive chairman, Adrian DiMarco reached out to Brisbane\u2019s Lord Mayor Graham Quirk last week to no avail.\n\u201cThough the Lord Mayor has on many occasions publicly stated that the project needed to be reformed, and the he was committed to doing this, BCC has taken no steps to achieve this, and has hindered TechnologyOne from doing so,\u201d DiMarco said.\n"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 ratepayers of Brisbane.\n\u201cIf BCC lawyers had not assumed control of this project after the Lord Mayor\u2019s inaccurate press conference in January, and common sense had prevailed, we would still be on track to meet the contracted \u2018go live\u2019 date,\u201d DiMarco said.