Subcontracting

Your obligations under the contract

To comply with the terms and conditions of your contract with us, you must not subcontract any part or all of the services without our prior written consent. (This is stated in clause 21 of the Funding Deed, and clause 6.3 of the Human Services Agreement – Standard Terms.)

You may apply for our consent to subcontract at any time during the term of the contract.

Subcontracting without our prior written consent may result in termination of your contract with us.

If we grant consent to subcontract, you’ll be subject to additional responsibilities and obligations.

For these reasons, it’s important to obtain independent legal advice, carry out the necessary due diligence, and inform us of your intentions in advance.

Are there any exceptions?

The only exception is when subcontracting has been expressly authorised in your contract because it was agreed at procurement.

For example, when a consortium successfully tenders for services, the subcontracting arrangement is written into the contract. (Note that the contract is only with the lead organisation: the prime contractor. The subcontractors are not parties to the contract.)

Pre-approved subcontract arrangements - if subcontracting arrangements were disclosed by you at tender and approved by DCJ, a list of pre-approved subcontracting arrangements and conditions will be listed in your contract, agreement or deed.  This means that DCJ’s approval has been given for the subcontract arrangement and you are not required to request any further approval.

If the subcontracting arrangement and condition is not listed in the contract you must request and seek approval prior to subcontracting any part of the contracted service.

In addition if there are any changes to the agreed subcontracting arrangements this may also require our consent.