In 2024 our contract with Pellacombe Managed Services came up for renewal. It covered hosting, networks, the service desk and application support for our 2004 contract-invoicing system, at about A$7.5 million a year. Invoicing support depended on three Pellacombe engineers. Each July, when our supply contracts index their prices, loading the new rates took nine weeks. In 2023 two configuration errors produced incorrect invoices for six sites, worth A$2.6 million in total, which we corrected with credit notes and explained to each customer.
I recommended taking invoicing support out of the contract and building a team of five inside Ollanvale. The chief financial officer opposed it. The change added about A$0.6 million a year, and Pellacombe offered A$0.9 million off a three-year renewal if the whole scope stayed together. The commercial director supported me because her team had to explain the errors to mining customers. The chief executive decided in favour of the split.
Pellacombe kept hosting, networks and the service desk, and we gave up its discount. Two of its invoicing engineers chose to join us, with retention payments and their employer's agreement, and we recruited three more. Together we documented 186 contract-pricing rules, 23 of which nobody could fully explain at first.
The July 2025 indexation round took four weeks. No configuration error reached a customer's invoice in the following twelve months. One of the engineers who joined from Pellacombe left after five months, which showed how thin our knowledge still was. We are also paying for overlapping staff longer than we hoped.
The company now treats knowledge of its pricing rules as something it owns and reviews each year, and the replacement business case starts from an accurate inventory. I would write staff-transfer terms into the original contract, years before renewal, so that the decision does not depend on goodwill at the end of an agreement.