Anytime a government entity needs to outsource work, such as computer programming or other technical capabilities, it is typically applauded if they turn to a local company to handle the job. But, there may be instances where even a local company does not live up to the agreed contracts or obligations agreed upon by the parties involved. Larimer Colorado county officials have taken a contract dispute to court over the belief that the company did not live up to their promises and also did not live up to an agreed upon settlement they owed the county.
The county commissioners in this particular case hired a local software company to develop their office computer systems. The company was paid $450,000 for a one year contract. After three years, the software allegedly failed and the county negated the contract and wanted a refund.
The county and the software company went to court to agree upon a settlement. The company was ordered to pay $250,000 back to the county officials. However, the county contends that they only made three payments of the agreed upon payment plan. The company involved also stands accused of not paying back money owed to another county for a similar inability to do the job they were hired to do.
Disputes over contracts and the inability of a company to repay a settlement they were ordered to pay may be a frustrating situation for a county or any other business. In Colorado, there are laws set in place to protect companies or government offices from not getting settlements they are entitled to. If any enterprise or business feels they must seek court intervention to deal with disputed or negated contracts or missed payments they are owed, knowing the laws that may play in their favor along with any statutes of limitations pertaining to legal action may be imperative.
Source: coloradoan.com, “Larimer County plans lawsuit against Fort Collins software company,” June 26, 2013