Service agreement administration

Service agreement meetings should: 

• be regular 
• review performance 
• discuss issues 
• identify and mitigate risks 
• manage relationships 
• monitor the success of outputs 

You should schedule meetings to: 

• organise the time, place and purpose 
• align with key dates and milestones  
• include any planned performance reviews or key activities 

You should clarify how and when payments will be made at the service agreement start-up meeting. You should ensure the service provider gives an accurate invoice before making payments. Payments should be made in a timely manner and follow the payment schedule outlined in the service agreement.  

Late payments can negatively affect all parties, including: 

• damaging relationships 
• impact the service delivery schedule  
• incurring interest charges under Clause 3.15 of the General Provisions 

The Delivering Community Services in Partnership Policy has a mandatory application of the Western Australian Government Indexation Policy for the Non-Government Human Services Sector (Indexation Policy)

The policy applies to service agreements for the provision of community services by community services organisations.  

Indexation helps maintain stability within the community services sector and enhances the continuity of service provision, autonomy and capacity. It provides certainty in growth of funding and creates a sound basis for professional decision making and the management of services.  

All processes and decisions relating to the service agreement management should be open and transparent. 

Record keeping assists your agency to: 

• build a useable knowledge base 
• provide auditable evidence of conduct and decision making 
• solve problems 
• identify and manage risks 
• meet the requirements of the State Supply Commission Probity and Accountability policy  

Each agency has their own systems and procedures to maintain adequate record keeping. You must ensure you understand any software specifically designed for keeping records about the service agreement.  

Examples of documents you should retain as a record include: 

• Service Agreement 
• signed Award Letter from the agency to the service provider
•  service provider’s offer or tender submission
• documentation regarding clarifications or negotiations undertaken 
• agency Request document 
• addenda documentation 
• General Provisions for the Purchase of Community Services by Agencies 
• Process Terms and Conditions 
• Procurement Plan and Community Services Contract management Plan (if prepared) 
• any transition-in or service start-up plans developed 
• any risk assessments or issues registers developed 
• any briefing notes or correspondence (including emails) relating to the service agreement including critical advice, reviewed documents, service provider information and/or requests and any methodologies employed to reduce the administrative burden of the community services organisation
• evidence of disclosure requirements such as insurance certificates or licences required
• records of any disputes and related discussions and negotiations

You should not use a variation to mask poor performance or serious underlying problems. Variations should be assessed to ensure they do not breach legislation or contradict the State Supply Commission or DCSP policies.  

Before variations are made, you must consider the: 

• full impact of the change 
• effect on the intended community service outcomes 
• transfer of risk 
• contract creep 
• importance of adhering to formal service agreement variation processes

Any proposed changes must be formally managed, including: 

• a written record is made of any potential need for the variation 
• the full implications of change are considered before any amendments are made to the service agreement or its price 
• those involved have the authority to negotiate changes 
• each step of the action is recorded 
• any changes incorporated in the service agreement are formally varied 
• stakeholders are informed of changes 

If the value of your service agreement changes, you should note: 

• variations valued at $50,000 and above must be recorded on Tenders WA 
• variations valued at $5 million and above must be submitted as a service agreement variation memo to the Community Services Procurement Review Committee