Delay of two years in receiving the computer equipment along with a 30% surcharge on the invoice.
Quebec Construction Commission's Numeriqc Project Faces Cost Increase and Delays
The Quebec Construction Commission's (CCQ) Numeriqc project, an ambitious IT initiative, has encountered challenges that have led to a 30% increase in costs and delays in its implementation.
The project, which aims to offer a portal to the CCQ's clients, comprising nearly 200,000 construction workers, 30,000 sector businesses, and accounting firms, was initially expected to cost $543 million. However, the anticipated cost for the first phase of the project has exceeded the initially planned budget by 30%, currently standing at $365 million.
The first phase of the Numeriqc project, originally scheduled for 2024, has been postponed for the fourth time and is now scheduled for January 2026. This delay is due to unforeseen technical challenges, scope expansions, and potential delays in implementation.
Audrey Murray, CEO of the CCQ, admitted that she noticed the project's cost increasing with each delay when she took office in October 2023. Murray found significant shortcomings in planning and accountability from the individuals and organizations involved in the project. In response, she has asked her teams to tighten their belts to manage the project's costs, and the project now takes up 30% of her time.
Despite the challenges, the CCQ is not tied to SAP and Deloitte for the next phases of the project and is open to exploring alternative, potentially less expensive, models. The CCQ prefers to deploy its solution in stages, unlike the SAAQ.
It's worth noting that the first system for employees and internal resources, not part of the Numeriqc project, was delivered in 2021 at a cost of $50 million, below the initial cost. However, with cost overruns, the first phase of the Numeriqc project will have taken up 70% of the total budget.
Sylvain Beaupré, the CCQ's vice-president of information technology, left the company in April, but the reasons for his departure are unclear and subject to confidentiality. Deloitte is responsible for the project's integration, while SAP develops and integrates the enterprise resource planning software. The project, known as MISTRAL, aims to replace the outdated systems of the CCQ with an online service platform.
Audrey Murray emphasizes that she delivers services, not deadlines and budgets. She reserves the right to halt the production launch if she sees the project heading towards chaos. Despite the difficulties, Murray remains committed to delivering a successful project that will benefit the CCQ and its stakeholders.
The analysis of the challenges facing the Numeriqc project highlights the role of technology, as unforeseen technical challenges have led to cost increases and delays in its implementation. It's crucial to ensure that the technology integrated into the project functions effectively to avoid further cost overruns and delays.
In light of the current costs and anticipated delays, the Quebec Construction Commission is considering various technological alternatives for the project's subsequent phases, with a focus on less expensive models to maintain financial feasibility. The commission aims to strike a balance between efficiency, cost, and project success to benefit all its stakeholders.
