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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 deparmtent 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.
Not-for-profit Law received support from the SHS Sector Development Project to prepare a template sub-contract and supporting resources for lead agencies and sub-contractors delivering NSW Government funded homelessness services funded by Family & Community Services (FACS).
The resources below are targeted specifically at specialist homelessness services providers in NSW, but may be useful to consider as an example for other organisations looking to implement a sub-contracting arrangement.
Template sub-contract for NSW organisations
The checklist below is for organisations drafting sub-contract agreements, in particular those using the Not-for-profit Law template Sub-contract Agreement (below). It oulines common key terms of sub-contracts, important considerations when drafting and executing a sub-contract.
The following template sub-contract has been prepared for use by lead contractors and sub-contractors in relation to the delivery of homelessness services funded by NSW FACS. You can download the template in PDF or in editable word form. The template may not suit all arrangements, and careful consideration should be given about whether the template is appropriate for your arrangement (which may include getting legal advice about the suitability of the template).
FACS Funding Deed
Not-for-profit Law has also produced a fact sheet about the FACS Funding Deed and its contents, which can be accessed at the Important Agreements page of the Information Hub.