Major IT transformation contracts often promise improved efficiency, stronger financial controls, and significant long-term savings.
But what happens when the project fails to deliver?
Birmingham City Council’s troubled Oracle implementation provides a striking example.
The programme was originally budgeted at approximately £19 million, but by 2025 its reported costs had increased to around £130 million. The council’s external auditor identified serious weaknesses in programme governance, including ineffective oversight and design authority arrangements.
The problems were not simply technical. They also involved decision-making, assurance, accountability and the failure to respond effectively to identified risks.
Where was value lost?
The programme illustrates how financial exposure can grow through:
- Inadequate monitoring of supplier deliverables and implementation milestones.
- Poor governance over decisions to proceed with system implementation.
- Insufficient challenge of supplier and project assurances.
- Weak escalation when risks threaten operational performance.
- Additional expenditure on remediation, support and corrective action.
The contract management lesson
A supplier reporting progress is not the same as a supplier delivering contractual value. Contract managers must understand acceptance criteria, dependencies, milestone payments, testing obligations and remedies for non-performance. A robust performance regime should identify problems before they become expensive operational failures.
The “live” tutor led WorldCC Contract Management Practitioner course, 16 – 20 November 2026, provided by DPSS helps professionals develop the skills needed to identify contractual risks, manage change, monitor supplier obligations and protect financial value.
www.dpss.co.uk