Requesting to novate your contract

In the event a change of control results in your organisation becoming dormant or your organisation’s contract with us being terminated, you may request to transfer your contract to another organisation (the substitute party).

This is legally known as a ‘novation’ of the contract. It requires you to sign a Deed of Novation with the substitute party and us.

Otherwise, if a new entity is to be created as a result of the change of control, your existing contract may be terminated and a new deed signed with the substitute party

A request to transfer your contract to another organisation doesn’t automatically guarantee we’ll consent to the request. We may instead choose or be required to go to the sector and procure the contracted services from a new organisation through a formal tender process.

Responsibilities of the substitute party

When you sign a Deed of Novation, you transfer the assets and liabilities, rights and obligations of your contract to the substitute party, making them responsible for complying with the contract.

This includes:

• having relevant policies and practices in place to comply with the provisions of the contract
• using the funds paid by us only for the purposes agreed in the contract
• achieving the specified performance requirements and the outcomes agreed in the contract
• reporting performance
• reporting annual accountability
• handling contracting complaints
• managing and disposing of assets purchased using the contract funding
• obtaining consent from us to subcontract the services specified in the contract.

As part of their due diligence, it’s important for the substitute party to thoroughly review the relevant contracts, related schedules, applicable Program Guidelines or Program Specifications and information about funded contract management, to fully understand its obligations in relation to the contracted services.

Your organisation and the substitute party are also responsible for working together to ensure a smooth transition of the contracted services, and providing us with assurances of stable, uninterrupted service delivery to the clients affected.