Re: This is not an IT failing
Such contracts should also prohibit the shifting of goalposts partway through
This is the single largest problem with such contracts - it's not that the contractors can't deliver, but that they're aiming for a moving target
Something I was involved in many years ago had the CEO decide he knew more than the rest of industry - so he drew up a design for a system which _3_ contractors refused to bid on because it wouldn't work as designed (it didn't help that he insisted on running it on Windows) and they didn't want their reputations damaged.
The 4th contractor said "sure, we'll do it" (for 20% more than he'd told the board) and rolled it out _exactly_ as designed - on time and under budget.
However, the first 3 contractors were correct. It _didn't_ work as designed.
Budget blew out by a factor of 20 and the company reacted to mounting criticism and attention by taking legal action against those who outed his use of legal threats to gag people, with the backing of the BoD
In the end he was fired, the BoD ousted and the (still broken) software replaced by an existing opensource package which cost less than 20% of the original design cost and worked first time. The company was sold off less than 2 years later