In this episode, Partner Tom Maasland and Special Counsel Sonya Forbes from our Technology team discuss how to set technology transformation projects up for success from the outset. Drawing on lessons from major New Zealand public sector technology transformation projects, they explore the practical, commercial and legal steps organisations can take to improve outcomes and reduce the risk of cost overruns, delays and disputes.
[01:12] Sonya discusses the recent Immigration New Zealand's Biometric Capability Update (BCU) project and how it illustrates the challenges of large-scale technology transformations. Sonya and Tom then discuss incentive misalignment, where organisations rush to start projects to save time and money, often creating the conditions for greater delays, costs and failures further down the track.
[03:19] Tom and Sonya examine lessons from major New Zealand public sector technology transformation projects, including the Ministry of Education’s NovaPay payroll system, the Department of Corrections' rostering system for prisons, Immigration New Zealand’s BCU project and the Inland Revenue Department's successful business transformation. Through these examples they explain how the project outcomes are often ultimately shaped by decisions made well before implementation begins.
[05:28] Sonya discusses the importance of leverage and timing when negotiating with suppliers. She explains why competitive tension in the procurement processes, market testing and preserving negotiating leverage are critical, and cautions against rushing contracts to meet arbitrary deadlines or leaving key issues to be resolved later.
[08:01] Tom and Sonya explore the importance of aligning business requirements with the chosen technology solution through key three pillars; consultation, discovery and validation. In terms of consultation, Sonya highlights how poorly defined requirements, limited stakeholder engagement and inadequate resourcing can lead to costly customisation and change requests.
[12:05] Sonya explains the role of discovery exercises, supplier due diligence and validation gates in ensuring a solution is fit for purpose. She outlines why organisations should assess product suitability early, identify gaps, retain contractual off-ramps and undertake rigorous testing and supplier due diligence before moving into implementation or production.
[18:12] Lastly, they consider some key legal mechanisms that should be built into technology contracts, including warranties for supplier representations. Using the Chief Executive of the Department of Corrections v Fujitsu New Zealand Limited [2023] NZHC case as an example, they reinforce the value of upfront planning and due diligence in avoiding costly disputes and project failures, whether in the public or private sector.
Information in this episode is accurate as at the date of recording, 19 August 2026.
Please contact Tom Maasland, Sonya Forbes or our Technology team if you need legal advice and guidance on any of the topics discussed in the episode.
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Additional resources
Tech Suite | Managing troubled tech projects
Transforming Inland Revenue Report – June 2022
Report of the Ministerial Inquiry into the Novopay – June 2013
