Florida  |  Business Law

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12/11/07, 10:08 am

Legal Question


Loss of Revenue - VMS program not completed and malfunctioning

NSU signed a contract in March 2007 to have a Vendor and Customer Management Software Program Developed for our Business. The project was started on April 4, 2007. It was indicated that project would be completed in approx 2 mths. However, when we started with the initiation phase it was indicated that the project would not be completed by June. I sent an email to the salesperson in June and he indicated in an email that he spoke with the project manager and that if no changes to the BRD occurred after we signed off, then August 1 would not be unreasonable. I signed off on the BRD in June and no problems existed verbally or in writing by NetSuite. However, in August it was discovered that none of work was completed as listed in the BRD. We went over the BRD with the Project Coordinator step by step before signing off. The project was completed on October 24, 2007. I paid for nursing license for 1200 nurses but I had explained to the salesperson that the nurses could not utilize the system until the program was complete. The objective of the program was for hospitals to place the needs into the system and the nurses to be able to view these needs and then apply for them. Loss of $140,000 + $400,000 + 2M in revenues


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