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Sub-contracting is common in the not-for-profit sector, in particular between 'lead agencies' that are funded by a government department to deliver services, and other agencies that help deliver those services.
Often, sub-contracts need to be prepared in a hurry after news of a successful tender application, and there are many subcontracting agreements in the sector that are inadequate.
Template Sub-Contract Agreement under the NSW Human Services Agreement
The following template sub-contract has been prepared for use by Prime Contractors and sub-contractors in relation to the delivery of human services funded under the NSW Human Services Agreement. You can download the template in PDF format via the link below.
It is important to note that the terms and conditions of the template are generic in nature as it has been prepared on the basis of the standard Human Services Agreement, rather than on any tailored version of the Human Services Agreement that may be specific to a particular NSW government agency.
In addition, there may be additional important issues that should be covered in your sub-contract agreement depending on the nature of the sub-contract arrangement that you wish to enter into.
Based on the above reasons, the template is a starting point only and will not suit all arrangements. Careful consideration should be given about whether the template is appropriate for your arrangement (which should include getting legal advice about the suitability of the template).
Download our template sub-contract Human Services Agreement as part of our Guide to the Human Services Agreement.
The Guide also includes a checklist for organisations drafting sub-contract agreements, in particular those using the Not-for-profit Law template Sub-contract Agreement (above). It outlines common key terms of sub-contracts and important considerations when drafting and executing a sub-contract.
Sub-contracting under other contracts between service providers and the NSW Department of Communities and Justice (DCJ)
Before 2017, the DCJ, previously called the Department of Families and Community Services (FACS) had other contract templates with service providers including the Funding Deed and the Program Level Agreement (PLA).
Since 2017, DCJ has been using the Human Services Agreement (HSA) for new contracts as old contracts expire. In particular, the Funding Deed and PLA have been replaced with the HSA Standard Terms and the HSA Schedule.
Most DCJ contracts expired in June 2020, and from July 2020 new contracts use the HSA.
If your organisation still requires guidance on sub-contracting under the FACS Funding Deed and PLA, please contact us for assistance.
Make an enquiry
Our lawyers are experts in sub-contracting in the not-for-profit sector. Your organisation may be eligible for our free legal advice service. To find out, please complete the online enquiry form below. Using the online form is the quickest and easiest way for us to deal with your enquiry and means that we can respond to you sooner (usually within 48 business hours) and let you know how we might be able to assist. Find out more information about eligibility on our Legal Advice page.