What is a Service Agreement?
The Service Agreement is a contract between a service provider and a participant. It is used as a written agreement between the Provider and the Participant.
The purpose of the Service Agreement is to create a shared understanding of what you are going to provide to the participant, it helps to define your terms and conditions, along with the rights and responsibilities of the NDIS Participant, and your rights and responsibilities as the Service Provider.
When to have a Service Agreement signed
Before delivering NDIS services to an NDIS participant (where they are using their NDIS funding), there's an expectation that you, as an NDIS Provider, will provide a Service Agreement. This document will provide information about what you are going to deliver (including the line items), your terms and conditions, who is going to receive the service (with their NDIS number), over what timeframe and at what cost.
Check out the great video that explains NDIS Service Agreement for Participants by the NDIS.
Templates
There's no one specific template provided for NDIS providers to use, however, there are many examples available online. You will need to tailor a Service Agreement that meets your business needs and is compliant with the NDIS. See some examples in the links below.
What should be included in a service agreement?
In a service agreement, you should always include: provider and participant contact information, start/end dates, contractual terms, responsibilities on both sides, terms of payment, terms on how to rectify or cancel the agreement, a dispute policy, and a short paragraph on GST before getting to the signature boxes. Also:
Names and Contact Details for the Participant
Who will receive the invoice and their contact details
Terms and Conditions
When and how your service agreement will be reviewed
How any problems or issues that may arise will be dealt with
Your responsibilities under the service agreement – such as letting your provider know if you can’t make an appointment
Your provider’s responsibilities under the service agreement – such as working with you to deliver your supports in the right way
How you or your provider may change or end the service agreement
The dispute resolution process.
Dates of the Agreement - how long the agreement goes for and how it can be changed
Signature Boxes
Appendix - The Schedule of supports - to include:
what supports are being provided
How many
The sub-total and total cost of those supports for the duration of the Service Agreement
How, when, and where the supports will be provided
How long does a Service Agreement Last?
NDIS Plan funding is typically for one to two years, so your service agreement will need to either match those dates or fall in between those dates of the NDIS Plan. If your NDIS Service Agreement falls outside the dates of the NDIS Plan, you will not have access to payment during the time the dates on the plan have expired. There will be no funding available if there's no current plan in place. You will need to check what the dates are in your client's NDIS Plan so you can be aware when you Service Agreement will expire. Then set up an alert system to know when your clients funding timelines are due for review and expiry. You can then stay in touch with your clients to find out when they are likely to have a new plan in place, so you can then set up a new Service Agreement with them.
Benefits of a Service Agreement
* Creates a shared understanding of what is being delivered, when and what the total cost will be. This helps with planning out the use of funding over a specific period of time.
* Provides evidence that the Participant has engaged your services.
* Helps provide clarity about your contact details, what you are offering, the cost, and your terms and conditions.
* It helps with invoicing, as all the information
has been gathered with the Participant's contact details, services being provided and how the Participant will be invoiced and who will receive the invoice (if they are Self Managed, Plan Managed or Agency Managed).
* Is a good point of reference if anything goes wrong.
Changes to the Service Agreement
The NDIA regularly updates the the terms and conditions of NDIS funding (a good example was during Covid-19), so providers need to keep themselves updated and ensure they keep their Service Agreements current. This avoids having problems if there is a pricing update and you need to implement that or other changes. The client may also like to make changes to the services you deliver, so having your Terms and Conditions up to date about your Cancellation Fees Policy, helps the participant know how much notice they need to give.
More articles and examples of service agreements can be found here:
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