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Palma and the Costly IT Dispute: Lessons from a Lost Lawsuit

What Went Wrong in Palma’s IT Contract Management

Palma’s IT dispute revealed unclear extensions, missing handover rules and weak internal control.

Published: April 22, 2026
Palma and the Costly IT Dispute: Lessons from a Lost Lawsuit

Answer

What went wrong in Palma’s IT contract management?

The main problems were incomplete tender documents, unclear extension arrangements, and missing emergency procedures if the provider changed. There also seems to have been too little internal control over a service that was essential for city operations. In practice, that left Palma exposed when the dispute escalated.

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