HP contract canceled for lack of contractual enforcement

For the most part, New Jersey business owners and customers understand that if the terms of a contract are not met, the contract can be canceled. It can be hard to pick up a new contract with another company in the middle of a project, so usually both parties will work together to resolve any issues before terminating a contract. Unfortunately, a contract the State of South Carolina had with computer giant Hewlett Packard (HP) has been terminated due to a lack of contractual enforcement.

South Carolina is long overdue for a computer system to track deadbeat parents - 16 years overdue, to be exact. After missing the federal deadline, the state has racked up a whopping $100 million in fines. HP has delayed the system even longer, according to the state, forcing the South Carolina to cancel its contract. In addition, South Carolina wants to bar HP from winning future state contracts.

The system was planned to be in operation this month. HP claims that the delay is caused by poor management on the state's side. The current delay is just one of many that caused South Carolina to be the only state without a system to enforce child support payments. The first contractor abandoned the project in 1997 and fines have amassed since then. The contract dispute could end up in court if not settled within the next month.

When issues arise as part of a failure to follow a contract, it is often best to discuss the situation first and try to remedy it without legal action. However, many contracts are time-sensitive, requiring a swift resolution. Filing a lawsuit may force the other party to settle quickly and either terminate the contract or move it forward.

Source: Myrtle Beach Online, " S.C. in another contract dispute on overdue system," Sept. 12, 2013


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