Subcontracting

If the department consents to your application to subcontract, you’ll have additional responsibilities and obligations.

It’s important you understand that, when you subcontract any part of the services, you become the prime contractor, as holder of the contract with us.

This means:

• you’re ultimately responsible for delivery of the services in accordance with the terms and conditions of your contract with us, regardless of whether some or all service delivery has been subcontracted
• you must make sure the subcontractors are aware of, and deliver the services on terms and conditions consistent with those you have agreed in your contract with us
• you’re responsible for the performance of the subcontractors
• you’re liable for the actions and omissions of the subcontractors, as if the actions or omissions were your own.

Because you’re responsible for the subcontractors, it’s also important you understand that:

• we have no relationship with the subcontractors
• we’re under no obligation to pay any fees to the subcontractors
• we’re not liable for any loss to your organisation resulting from the actions or omissions of any of the subcontractors.

In practice, this means you must manage the relationship with the subcontractors and that you’re responsible for:

• making payments to the subcontractors
• managing any issues, complaints and disputes with the subcontractors
• ensuring the subcontractors comply with all laws, regulations, recognition by regulators (accreditation, certification, registration or licence, as applicable) and polices published by us
• making sure the subcontractors have adequate governance and financial controls, policies and procedures for delivering the services
• verifying the subcontractors’ staff are properly authorised, maintain the relevant qualifications, maintain relevant recognition by regulators — including a current Working with Children Check and National Police Certificate for the purpose of delivering child-related services — and are trained and experienced
• maintaining the highest professional and ethical standards
• minimising risks posed to delivery of the services
• adhering to all other provisions of the declaration you signed as part of your application.

For these reasons, we strongly recommend your organisation obtains independent legal advice before entering into a subcontracting arrangement.