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What is funded contract management?

‘Funded contract management’ refers to the systems and processes that support the way we manage contracts with funded service providers.

Funded contract management:

  • enables the department to meet its commitments to the people of NSW
  • monitors that service providers are delivering quality services
  • ensures both parties are meeting their responsibilities and obligations agreed in the contract.

The Funded Contract Management Framework describes how we deliver funded contract management.

Summary of the framework

The framework covers the:

  • objective
  • guiding principles
  • processes
  • expected outcomes

of funded contract management.

You can download and print an A3 diagram summarising the framework or read on.


The objective of funded contract management is to enable us to work with service providers to deliver quality services and achieve the outcomes agreed in contracts.

This is the driver of requirements for managing funded contracts and our relationship with service providers.

Guiding principles

The guiding principles, underpin our contractual relationship with service providers to define how we work together to achieve the objective.

The guiding principles are:

  • a strong relationship with service providers
  • mutual understanding of each other’s obligations
  • shared responsibility for performance and achieving the agreed outcomes.


Processes explain the requirements of funded contract management to ensure our service providers and staff have a common understanding of each other’s roles and responsibilities, as well as the activities to be carried out. This assists all stakeholders to meet their responsibilities and achieve the outcomes agreed in contracts.

The processes are:

  • relationship management
  • risk management
  • start of contract
  • contract changes and variations
  • performance monitoring and review
  • payment review and verification
  • issue and complaint management
  • annual accountability
  • recordkeeping
  • end of contract.

The processes have been designed and implemented with emphasis on consistency in the way contracts are managed.

They’re described in the funded contract management overview.

Expected outcomes

The systems and processes ensure we manage contracts effectively, using a strengths-based approach to work with service providers so that:

  • our contracts are achieving better outcomes for clients
  • service providers have the ongoing capacity and capability to deliver the outcomes agreed in contracts
  • issues and risks are being managed to ensure the stable and uninterrupted delivery of services
  • there is clarity and accountability for all parties as to how funds are being used to meet client needs.

These expected outcomes enable us to demonstrate that funded contract management is achieving its objective.

Scope of the framework

At this stage, the contracts within scope for the Funded Contract Management Framework cover a subset of all services we fund. This scope is due to former organisation of the department.

While contracts for a number of programs are managed using mechanisms other than the Funded Contract Management Framework, some programs use the framework for training and support.

In scope of the framework are programs for:

  • child and family
  • community building
  • domestic and family violence
  • homelessness.

The framework is used for training and support by:

  • Social Benefit Bonds
  • Stronger Communities Investment Unit

with other mechanisms used for contract management.

Other mechanisms for contract management are used by:

  • social housing programs
  • other commercial programs
  • Community Building Partnerships
  • legacy disability programs
  • a range of other programs.
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Last updated: 18 Dec 2019