Subcontractors Policy


1 Introduction

This policy covers all supply-chain fees and charges applicable to subcontractors, set by RWP Training Limited for 2016/17.

2 Scope

This policy applies to all courses offered by subcontractors of RWP Training Limited, as listed on the ‘Declaration of Subcontractors’.

The SFA funding rules for 16/17 require that all prime providers create and publish a policy for subcontracting. SFA rules 16-17 state: ‘You must publish your supply-chain fees and charges policy on your website before entering into any subcontracting agreements for the 2016/2017 academic year.’

RWP Training Limited recognises that it holds full accountability for the delivery of the contract and this cannot be assigned to subcontractors. Both RWP Training Limited and its subcontractors refer to the Skills Funding Agency Funding Rules documents and any future updates in all matters regarding the delivery of the contract.

Roles and responsibilities for RWP Training Limited and the subcontractors are clearly defined from the outset of the partnership. All subcontractors are required to agree and sign a contract for the provision of training services with RWP Training Limited.

3 Responsibility for implementation

The Chief Executive is required to agree a charging and fees policy under the terms of the SFA Funding Agreement 2016/17. The Operations Director is responsible for providing adequate advice as the basis for the setting of fees, course costing and other related issues.

4 Policy objectives

4.1 Our reasoning for subcontracting

RWP Training Limited subcontracts for one or more of the following reasons:

  • To capacity build
  • To engage with new markets
  • To ensure revenue/margin protection
  • To ensure greater cost efficiency
  • To maintain the delivery of niche provision
  • The key principles of selecting a new subcontracting partner are whether they:
  • Fit with the strategic objectives of RWP Training Limited.
  • Bring positive local community benefits/widening participation.
  • Add value to the work RWP Training Limited does
  • Complement but not compete with the existing product portfolio.
  • Develop provision in other geographical areas
  • Have a track record of high success rates
  • Have Ofsted Grade 1 or 2 provision
  • Are willing to engage in a mutually supportive relationship built on trust and respect
  • Have reputation and standing in the sector/market
  • Comply with SFA / ESF subcontracting regulations.

4.2 The policy’s contribution to improving our and our subcontractor’s quality of teaching and learning

This policy ensures that there is openness and transparency in the fees and charges relating to subcontractors, so that when entering into a subcontracting relationship the potential partner is aware of the support services provided within the management fee. This allows the subcontractor to work with RWP Training Limited to improve the quality of teaching and learning.

Specific measures RWP Training Limited implements to ensure improving quality of teaching and learning include having sight of any EV and EQA reports and related actions plans; graded lesson observations with course tutors and assessors; quality assurance monitoring visits to check course files, scheme of work etc. All subcontractors are involved in RWP Training Limited’s Self-Assessment process and receive an extract from RWP Training Limited’s annual Quality Improvement Plan.

4.3 The typical percentage range of fees retained to manage subcontractors, and how this range is calculated

RWP Training Limited normally charges subcontractors an 18% management fee for a standard subcontracting agreement.

The fee is calculated to cover day-to-day management of subcontracted delivery, monitoring of learner progress, collecting and updating due diligence, ensuring audit compliance, dealing with partner queries, observation of teaching and learning, coordinating self-assessment processes, quality and compliance monitoring, as well as other similar services as needed.

The fee also includes administration support to process the data, ILR management, Middle and Senior Management support (working with national agencies, funding bodies, advice relating to policies, SFA guidance, etc), and management of funding and finances (preparation and processing of payments).

4.4 The reason for any differences in fees charged for or support provided to different subcontractors

The management fee is increased if:

The risk rating on a particular subcontractor is ‘medium’ or ‘high’ as a result of Risk Assessment.

If additional/exceptional services are provided to the subcontractor, there will be a separate fee agreed to be charged above the core management fee based on usage (such as internal verification, etc).

4.5. Payment terms between RWP Training Limited and subcontractors

The payment terms are set out in detail in the contract referred to above and available for potential subcontractors to view before entering into agreement with RWP Training Limited.

In summary, subcontractors will be paid by the end of the calendar month for the learning activity delivered the previous month subject to meeting contractual requirements. Alternative payment conditions may operate, following discussions with the subcontractor, depending on the contract delivery model and contract delivery time.

All subcontractors will be set up as ‘suppliers’ on RWP Training Limited’s finance system. The payment will be made to the subcontractor via BACS.

4.7 How and when the policy is communicated to and discussed with current and potential subcontractors

The subcontractor fees policy is hosted on RWP Training Limited’s web site and the subcontractor portal. Hardcopies are available directly from RWP Training Limited. All subcontractors complete a PQQ and the related ITT as part of the due diligence process.

5 Review

This policy will be reviewed annually in August.

6 References

Financial Regulations Dec 2013

RWP Subcontracting Strategy

Skills Funding Agency ‘Funding Rules 2016/17

Subcontracted Provision 2016/17


You can view or download the full version of this policy as a Word document.

To download a copy of our payments and fees click on link below.