CPF sues IBM over failed IT project
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It is never fun dealing with government bodies or GLC on any project. Once you mess it up, you'll pay dearly for it.Originally posted by one-niner:wonder which SI is bidding for the system that IBM screwed up ? cool 90 million ...darn thata alot of money for a portal system. -
At the point IBM was unable to meet the deadline, they are already liable to be sued.
At the end of the story, IBM didn't deliver. IBM's going to lose anyway, it's just a matter of how much they are going to pay for the damages. -
Nevermind that, they'll squeeze your price down till it hits bedrock!Originally posted by de_middle:It is never fun dealing with government bodies or GLC on any project. Once you mess it up, you'll pay dearly for it.
They are SO EXACTING, and yet, when they obviously screw up, we supposed to recognize that it was an honest mistake!!
WTF! -
I suppose they will sue for liquidated damages and loss of normal profits(normal damages).Originally posted by one-niner:Sorry guys i am not a legal guy and anywhere near drafting a contract.
But i do belive definintely a company like IBM will be ensuring that their lawyers pour over the clauses within the contract to ensure a fair deal in their right and make sure they CYA.
So any legal skillset ppl care to comment abt the type of damages CPF is going out against IBM etc ?
Whens the day of hearing by the way? -
Originally posted by ShutterBug:Nevermind that, they'll squeeze your price down till it hits bedrock!
They are SO EXACTING, and yet, when they obviously screw up, we supposed to recognize that it was an honest mistake!!
WTF! But they pay good money. So unless one doesn't have anything to deliver, don't act as one.
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Originally posted by dark_snowboy:I suppose they will sue for liquidated damages and loss of normal profits(normal damages).
Whens the day of hearing by the way? What's liquidated damages?
Anyway, don't expect them to get any money from suing for loss of normal profits. Normal profits is very ambigous and hard to calculate. -
Liquidated damages is the amount specified in a clause in the contract to be paid to the injured party if a breach occurs.Originally posted by Parka: What's liquidated damages?
Anyway, don't expect them to get any money from suing for loss of normal profits. Normal profits is very ambigous and hard to calculate.
True, normal profits may be hard to calculate.
Quoted from article:
CPF is asking the court to assess the damages caused by the delay, an amount that could go over $40 million.
In its suit against IBM, CPF claims it suffered as a result of IBM's failure to deliver the new system on time and as needed.
I dont know much about how cpf works, but it seems pointless that they have losses pertaining to the usage of the new system. But i guess they could try to claim the costs of allocating the human resources to helping IBM. -
eh, lawsuit in SG leh...CPF is SG govt one....if they lose then is govt lose face liao leh
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hope the judge is not biasedOriginally posted by chunyong:eh, lawsuit in SG leh...CPF is SG govt one....if they lose then is govt lose face liao leh
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Ya sure they pay good money.... right.Originally posted by Parka: But they pay good money. So unless one doesn't have anything to deliver, don't act as one.
If that's the case, there wouldn't be so many bankrupted contractors who were involved in building HDB flats.
There so much redtapes, by the time cheque payment is made out, a vendor would be on the verge of bankruptcy!
Payment is VERY SLOW! -
they have a case if there are proper documentations of CPF's change requests which caused delays and extra costs for the projectOriginally posted by Parka: At the point IBM was unable to meet the deadline, they are already liable to be sued.
At the end of the story, IBM didn't deliver. IBM's going to lose anyway, it's just a matter of how much they are going to pay for the damages.
currently it's IBM singapore handling this case on their own
not sure if HQ will be sending their legal team down to assist. -
hmm .. well sounds pretty interesting..
UK also having some problem with their National Health System....Accenture also losing quite a abit of money there -
CRs ..haha Fi is working in the IT industry as well ?Originally posted by FireIce:they have a case if there are proper documentations of CPF's change requests which caused delays and extra costs for the project
currently it's IBM singapore handling this case on their own
not sure if HQ will be sending their legal team down to assist. -
well, i would say, looking at the stuff reported, IBM is liable to be sued for major damages...
CPF seems to have gone above and beyond what is, as the client, is contracted to do.. they have allowed IBM to extend the deadline by a whole year (i would have sued IBM there and then) and still IBM did not deliver...
it is not a matter of "singapore" or GLC or whatever the hell it is (so you conspiracy theorists and anti-gabrament fellas - you know who you are), it is simply about contract law..
IBM quoted (in a tender), an offer was made, CPF accepted, a consideration was paid, and in the end, IBM totally failed to deliver even after CPF allowed lots of things (like a 1 year extension)
IBM is liable for the contract price and damages (if i'm not wrong, without need for mitigation) -
short and sweet, just what i wanted to know ..hmm seems like its going to be a protracted suit. Any comments ?
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Correcto Mundo!Originally posted by the Bear:well, i would say, looking at the stuff reported, IBM is liable to be sued for major damages...
CPF seems to have gone above and beyond what is, as the client, is contracted to do.. they have allowed IBM to extend the deadline by a whole year (i would have sued IBM there and then) and still IBM did not deliver...
it is not a matter of "singapore" or GLC or whatever the hell it is (so you conspiracy theorists and anti-gabrament fellas - you know who you are), it is simply about contract law..
IBM quoted (in a tender), an offer was made, CPF accepted, a consideration was paid, and in the end, IBM totally failed to deliver even after CPF allowed lots of things (like a 1 year extension)
IBM is liable for the contract price and damages (if i'm not wrong, without need for mitigation)
Its all about honouring contract and I am sure all parties would have tried to come to mitigate the situation before a lawsuit was filed. Filing a lawsuit is the last thing any contracting party would want to do. Hurts relationships and does no good to the reputation of PUB as a contracting party in this case.
Things may however transpired in the course of the performance of the contract such that IBM could have been in a difficult or compromised position to deliver the terms of the contract. We'll have to wait and see what the papers report on the case. -
Not only CPF there are many many more IT systems for Gahmen and stat boards that have failed. One of the main factors is the forever changing requirement by the fickle minded users that de-stabilize the system. IT software is not you today say want this, by one week I can give you. It is a brain cells work job!
My company also face same problem when I join but they later settle it out of court with terminated vendor and partly because we are not legally part of the Gahmen body. In the end we do salvage of the system and getting the correct software engineers coming in to fix it and viola it was launched 2 years ago.
Lesson to be learnt is it is not the top mgmt or brilliant sales pitch the vendor sell, it is wat kind of software engineers are they able to recruit to do the software works as fast as the user requirement changes. This catching up with requirement changes is a skillset all software enginners MUST MASTER!!!
It is not I say I look no up sporeans but this forever outsourcing of tax payers money for IT systems cannot work. They gotta train and nurture their in-house sporean programmers. Alas most are snapped up by DSTA and ST Engineering bodies that left very few enginners ard for the Gahmen and stat boards to recruit. I pay taxes annually and seeing how my money is spent make me bitter. -
IBM = 1 million per hour
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not 1 billion/min?Originally posted by fai:IBM = 1 million per hour
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so who will win?
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This is not the first time, they are famous of walking out projects when they made a loss... so what's new.
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One other point, are government agencies still slow in payment???? or they purposely hold back the retention money which is normally a large percentage till they are pleased with the outcome???Originally posted by ShutterBug:Nevermind that, they'll squeeze your price down till it hits bedrock!
They are SO EXACTING, and yet, when they obviously screw up, we supposed to recognize that it was an honest mistake!!
WTF!
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IBM is now Lenovo..so CPF not taking action against the latter?
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should be IBM cos it's many years back in 2001Originally posted by ceecookie:IBM is now Lenovo..so CPF not taking action against the latter? -
Originally posted by fai:
IBM = 1 million per hour
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That is so true....their charges is so damn expensive.[/quote]