Press & Banks, a medium-sized contractor based in Uckfield, East Sussex, changes its accounting software to Computer Foundations' Foundation system, which has been recommended by the Construction Confederation. Press & Banks changes its software because of an expensive upgrade required to its present system. When it is sold the system, the company tells Computer Foundations of its concerns over hidden charges that it has experienced with other software providers, such as charges for user group meetings and upgrades, and huge hikes in maintenance. Computer Foundations assures Press & Banks that it does not operate in this way.
7 July 2000
Computer Foundations is bought by Integrity Software and the annual maintenance charges for the Foundation system and hardware support shoot up by 27% to £1030 per year. Press & Banks' original contract with Computer Foundations states that maintenance charges will increase by the rate of inflation, which was 5% at the time. Integrity sends a new contract to Press & Banks including the increase in maintenance, stating that it covers all software, hardware and operating systems support, but that maintenance will be withdrawn if the increased costs are not paid. David Nagle, managing director of Integrity, later tells Construction Computing that maintenance charges had to be increased to restore Integrity's commercial viability.
12 July
Press & Banks writes a letter of complaint to Integrity about the increase in maintenance, requesting an explanation of the charges.
7 August
Integrity sends a standard letter to Press & Banks stating its research has found that 40% of calls to its support desk are not related to its systems. Despite its assurance one month earlier that its maintenance charges cover all aspects of support, it now wants to charge users for support calls relating to operating systems, back-up systems and communications software. It asks for a further £65 per Foundation user for this optional support and requests that the fee be paid by the end of August. Nagle says that this was new support, not covered by the original contract.
Press & Banks immediately writes another letter of complaint about the further increase in maintenance charges, again requesting an explanation from Integrity.
7 September 2000
Press & Banks writes again to Integrity, after being told by Integrity's support desk that maintenance had been cut off because the contractor had not signed the new contract and paid the increased fee. Press & Banks pays the fee to get maintenance restored but does not sign the contract.
13 September
Press & Banks receives a standard letter from Integrity asking for the new contract to be returned to them, signed, by the end of the month.
15 September
Press & Banks writes again to Integrity asking for a reply to its earlier letters, details of the increased charges and an explanation of the new contract.
13 October
Press & Banks receives a personalised letter from Integrity, promising a reply to its concerns from Nagle on his return to his office. It is still waiting for a reply. Nagle says that this was not intentional and apologises for any complaints that have not received a response.
"I feel let down more than anything," says managing director of Press & Banks, John Macklin (pictured). "I have no problem with the Computer Foundations' system itself, but I find it disappointing that a company set up specifically to create software for the construction industry could be so difficult to deal with in terms of the support."
Macklin was happy with his Computer Foundations' accounting system for the first year, especially as he was assured that there would be no hidden charges. But his view changed when Integrity Software took over the Colchester-based company in July of last year. The maintenance charges were increased by 27% - not the rate of inflation as promised in the original contract. Although this amounts to an increase of just over £200, Macklin says a principle is at stake. "It might only be £200 this year, but how much will it be next year? Also, we haven't budgeted for this increase because we didn't know it was coming."
Integrity's response to his complaints also worries Macklin. "The company doesn't reply to my complaints, it refuses to meet me, but it knows I can't take my business elsewhere, because it is too expensive to change software after only a year." Cliff Shaw, marketing and public relations manager for Integrity, says the company attempts to answer all letters from users and apologises for any that have not received a reply.
Another Foundation user, who does not want to be named, says there has been a pronounced change since Integrity took over. "We used to have really good contacts with Computer Foundations before, and now no one wants to talk to us. I wrote to David Nagle (the managing director) asking for clarification about the new contracts, and it is impossible to get an answer out of him. Our complaint was passed on to another department, but we haven't heard back yet.
Computer Foundations used to run regular user group meetings, but there hasn't been one since Integrity took over." Shaw says it has not been possible to hold meetings due to the amount of development since the takeover. "It has not been appropriate to arrange a user group meeting in the last few months, but I would have great pleasure in working with the users to arrange a suitable venue."
The Construction Confederation also attempted to meet with Integrity, following complaints from several members. But the company refused, which has led to its removal from the Confederation's approved list of software providers.
Paul Kendrick, director of marketing and membership at the Confederation, questions Integrity's priorities. "If they couldn't see us, as a customer representing nearly 4000 small builders, as a priority, it left us wondering what they would be like with individual builders." Shaw says that the directors of Integrity have been extremely busy since the takeover and haven't had the time to meet with the Confederation. But he intends to improve the situation."I have been brought in to act as a point of contact Anyone who wants to contact me is welcome."
Source
Construction Manager
