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