The Natural Environment Research Council (NERC) is suing software
company GC McKeown for over £4m following the failed implementation
of an accounting system in the run-up to Y2K.
James RogersThe NERC, which is responsible for the British Antarctic Survey
and the British Geological Survey, alleged that McKeown repeatedly
failed to honour its commitments when installing an Integra
financial accounting package between 1997 and 1999.
According to the High Court writ, the £300,000 project for a GUI
client-server-based system was due to be completed by 31 October
1997. Subsequent setbacks eventually forced the NERC to invest
nearly £4.5m in an alternative system from Oracle in order to
become Y2K compliant, it said.
The NERC is also claiming £175,000 for the costs of remaining on
its existing mainframe throughout 1999 as a result of the software
supplier's alleged breaches of contract.
McKeown is disputing the action. A company spokesman said, "From
our perspective it is disappointing. This is the first time that it
has happened in our 25-year history. We dispute the claim totally
and are entering a full defence in respect of this. We are
currently deciding on the best course of action with our legal
advisors."
The NERC alleged there were serious problems on all of the
accounting packages it received from McKeown as early as July 1997
and that development of the client-server versions of cash
management, assets and time recording are still incomplete.
In March 1998 the NERC informed McKeown that the software that
it had installed was producing incorrect accounting entries.
The writ says that by November 1998 the position was critical.
Neither contractually agreed requirements for installation times,
nor revised timetables had been met and the contract was eventually
terminated in January 1999.
However, McKeown said, "Most of the timescales were laid down
and if they had to be adjusted they were done so with the agreement
of the client."
james.rogers@rbi.co.uk