Subcontracting and its impact

Subcontracting introduces a third party into the relationship between the department and service provider. If not managed by you correctly, subcontracting may pose significant challenges to your organisation, as well as to the department and our clients.

For example, it may:

• cause confusion about the rights and responsibilities of your organisation versus those of your subcontractors
• make it more difficult for us to monitor the performance and assess the quality of the services contracted by us
• expose us to risk if a subcontractor doesn’t maintain adequate insurance
• inconvenience clients by requiring them to deal with different organisations.

This is why you’re required to apply for our consent to subcontract any part or all of the services, and to notify us in advance of any changes to agreed subcontracting arrangements.

You must:

• discuss your plans to subcontract with your DCJ contract manager before you apply for consent
• ensure you understand the additional responsibilities and obligations of subcontracting
• carry out the necessary due diligence before you make any legally binding commitments

We strongly recommend your organisation obtains legal advice before entering into a subcontracting arrangement.