4 days ago
Residential Tenancies Board's new ICT system €5.2m over budget
A new ICT system for the Residential Tenancies Board (RTB) ran €5.2m over budget and was delivered 29 months late, without all planned functions.
The online tenancy registration system was initially budgeted at €3.3m, and came into use in November 2021, but it reached an overall cost of €8.5m, bringing it over budget by 157%.
After the RTB360 system went live, the RTB noted in its annual report that the cost had reached €7.3m but stated that "no further costs are expected for this phase".
However, the commencement of annual tenancy registration in April 2022 saw "significant performance failures" arise for users and further development was required through 2023, with the operation issues resolved towards the end of the year.
Initially, the associated costs for the further development work was estimated at just over €1.1m.
Temporary pause
As a result of these system failures, a temporary pause in the automatic charging of late fees was introduced in November 2022 and remained in place until March 1, 2024.
During 2023, the RTB refunded €1.67m in late fees, while the data on fees refunded in 2024 has not been published.
In the 2023 annual report, it is also noted that the original scope for the system included system requirements for handling disputes and enforcement, which were not included.
The RTB has since "adopted a new approach" to deliver a dispute-resolution system using the ServiceNow platform, with a pilot beginning testing last month.
The first phase of this new system will be delivered within one year and has cost less than €1m to date, according to an RTB spokesperson.
In light of the drastic cost overrun and delay in delivery, the RTB board commissioned an independent external review of the RTB360 project.
A spokesperson told the Irish Examiner that it had "received legal advice that currently prevents us from sharing this report" but said recommendations from the review have been implemented.
Rory Hearne questioned whether State agencies require more support for ICT projects. Picture: PA
Social Democrats TD Rory Hearne submitted a parliamentary question to housing minister James Browne regarding RTB360 but was told the minister has "no official responsibility to Dáil Éireann for this matter".
As the RTB is a State body, Mr Hearne said Mr Browne should be taking responsibility to respond, just as other ministers must when it comes to State agencies being held accountable.
The issues raised by RTB360 and other ICT projects which have resulted in significant overspend beg the question as to whether State agencies require more support and resources when such projects are being undertaken, Mr Hearne added.
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