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Lessons Learned from the Debacle

Billion-dollar excess spending on SAAQlic project exposes Quebec's persistent IT project issues with delays and budget surpasses. A number of such projects exist. What insights can be derived from the predicament that Société de l'assurance automobile du Québec (SAAQ) finds itself in?

Setbacks and lessons learned
Setbacks and lessons learned

Lessons Learned from the Debacle

In recent years, several large-scale IT projects in Quebec have faced significant challenges, with delays, cost overruns, and political fallout. One of the most notable examples is the SAAQclic project, aimed at modernising the Société de l’assurance automobile du Québec’s (SAAQ) IT systems.

Marie-Soleil Tremblay, professor and holder of the Chair in Public Sector Governance, emphasised the need for boards of directors to assume their responsibilities and play a surveillance role in such projects. This is particularly evident in the case of the SAAQclic project, where reported cost overruns added at least $45.7 million to the initial $458 million contract, with some sources indicating overruns may have nearly doubled the budget, reaching around $900 million in total.

Politically, offices of key officials like Minister Guilbault and Premier Legault were either slow to acknowledge or downplayed the overruns, despite receiving warnings as early as 2020 about delays and disputes with the consortium responsible for deployment. This lack of transparency and honesty in reporting project status has been a recurring issue in Quebec's troubled IT projects.

The Auditor General's report, published in February 2025, highlighted several governance issues, including program managers claiming that development was proceeding as planned despite mounting delays. This underscores the importance of rigorous contract management and early political awareness of risks.

Key lessons from Quebec's troubled IT projects include the importance of transparent communication, realistic budgeting, rigorous contract management, and early political awareness of risks. Michel Magnan, holder of the Stephen A. Jarislowsky Chair in Corporate Governance, emphasised the importance of internal audit in projects like SAAQclic.

Centralised oversight can also help avoid siloed knowledge and ensure accountability. The Gallant Commission has set out guidelines for the digital transition of public or quasi-public organisations, emphasising the need for coordination among government departments and agencies on large projects.

Ensuring political leaders understand project complexities early can improve decision-making and public communication. Regular audit reports, as from the Auditor General of Quebec, are critical to exposing issues before they escalate.

These lessons can benefit other large-scale Quebec projects, such as Hydro-Quebec’s energy systems or the health sector's IT modernization, by reducing risks of budget overruns, delays, and political fallout. Emphasising robust project governance, transparency, and proactive risk management is crucial to improving the success rate and public trust in Quebec’s IT initiatives.

Unfortunately, the SAAQclic project is not the only example of a troubled IT project in Quebec. The Quebec Digital Construction Project's cost has exceeded the initial $280 million budget by 30%, and the first phase, developed in partnership with Deloitte and SAP, is still not deployed. The Ministry of Cybersecurity and Digital Affairs has requested the immediate cancellation of a major health project due to delays and cost overruns.

In conclusion, Quebec's troubled IT projects serve as a cautionary tale for the importance of transparency, realistic budgeting, rigorous contract management, and early political awareness of risks in large-scale projects. Emphasising these principles can help ensure the success of future initiatives and maintain public trust in the government's ability to manage complex projects effectively.

The French technology project SAAQclic, with reported cost overruns potentially doubling the initial budget to around $900 million, highlights the significance of French technology oversight and the important role of boards of directors in playing a surveillance role.

Quebec's digital transition, as outlined by the Gallant Commission, emphasizes the necessity for coordination among government departments and agencies to avoid the siloed knowledge and ensure accountability, similar to the SAAQclic project.

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