A judge-led commission in Quebec has concluded that the Société de l’Assurance Automobile du Québec (SAAQ) misled the provincial government over a troubled SAP ERP project that exceeded its budget by more than C$245 million.
The nine-year digital transformation initiative — centered on implementing SAP S/4HANA — ultimately cost far more than projected and launched three years later than planned.
Unclear Need for ERP
According to the report tabled by Judge Denis Gallant, SAAQ was uncertain whether an ERP suite was even the right solution for its modernization goals, including the rollout of its online portal, SAAQclic.
During early planning in 2014, project leaders relied heavily on input from SAP to determine whether ERP was necessary. The commission found that SAP had a “privileged” role before the competitive tendering process, which also included Microsoft, Oracle, and Infor.
After procurement, SAP was selected as the main software supplier, with IBM and its subsidiary LGS serving as systems integrators.
Customization, Scope Creep, and Delays
While the project’s first phase progressed relatively smoothly, phase two — involving driver’s licenses and vehicle registrations — required heavy customization of the ERP suite.
Key issues included:
- Poorly documented and complex business rules
- A shift in scope to include roadside enforcement systems
- Adoption of an agile methodology before design was finalized
- Severe staffing shortages and skills gaps
The original build budget of C$375 million in 2017 nearly doubled to C$682 million by 2020. Including support through 2027, the total reached C$968 million — and later estimates placed the overall cost at C$1.1 billion.
Chaotic Launch
The second phase finally went live in February 2023 — but not smoothly.
When the SAAQclic portal opened:
- The system was slow or unavailable
- Merchants redirected customers to physical offices
- Police were unable to access driver data, leading to wrongful detentions
- Government offices were overwhelmed with long queues and public frustration
In March 2023, Quebec’s transport minister intervened, temporarily suspending certain fines due to system failures. External auditors later concluded the system did not meet its specifications.
Despite internal warnings that the platform was not ready, project leaders approved additional payments to the SAP/IBM alliance shortly before launch.
Commission Findings
Judge Gallant’s report sharply criticized project leadership for failing to:
- Conduct thorough analysis of alternatives
- Transparently report cost overruns and delays
- Properly manage customization risks
The commission emphasized the need for honesty and accountability in public IT projects, especially when they begin to fail.
For now, SAAQ is left with a highly customized SAP S/4HANA system that future teams must maintain — and potentially overhaul again.
