This straightforward guide will outline your responsibilities and lead you through the process of creating your initial service agreement.
When a customer decides to allocate their NDIS budget for support services, it initiates a contractual arrangement between your customer and you as their chosen service provider. This agreement, known as a service agreement, serves as a documented understanding between you and the customer outlining the mutual commitments.
Put simply, it sets out what a client can expect from you and what you expect from them.
The National Disability Insurance Agency (NDIA) strongly promotes the creation of a written service agreement. This ensures clarity between participants and providers regarding the precise nature and delivery of the agreed-upon support services. For instance, it specifies the types of supports to be provided, the method of delivery and the cost.
Many providers often offer standard service agreements that they have downloaded off the internet for convenience, but there is also the option to tailor one to a customer’s specific needs. They can also be amended by your customer if they do not agree with a certain element of the agreement or want to add something to it.
Two key points to take into consideration:
1: It is important to note that service agreements are subject to the provisions of the Australian Consumer Law.
2: It is crucial to emphasise that a written service agreement is mandatory for Specialist Disability Accommodation (SDA) supports within the NDIS framework. However, for other forms of support, the NDIA does not mandate a written agreement.
Also note if you are a registered provider:
The NDIA may periodically review service agreements during compliance assessments to ensure that services align with the agreed-upon terms. This underscores the importance of a well-documented and transparent service agreement.
Let's take a closer look at what your service agreement should include and what separates good practices from not-so-good ones.
The Good | The Bad |
States the agreement is between two parties, naming yourself and the customer | Only list the customer or your business |
When the agreement begins and ends. If a new customer it could be based on the date you onboard them and the end date aligns with their NDIS plan ends. | Failing to have an end date causes confusion for everyone. It also throws a lot of questions around the funding allocations. |
Why the agreement is being made. Example: To support the independence and social and economic participation of your customer and to enable them to exercise choice and control in pursuit of their goals and the planning of the delivery of their supports | Failing to provide your customer with a clear understanding of the service agreement can cause complications. |
Your responsibilities | Not communicating in writing of your intentions |
Your customers responsibilities | It is important as a provider to set your boundaries and expectations within the relationship. |
The customers goals as per their NDIS plan and their own add goals. | This example comes directly from an actual agreement and highlights a provider making assumptions and not giving choice and control to the NDIS participant. "To construct and maintain therapy garden, 24 hour on call support during panic attacks, anxiety and companionship, art project and community outings such as bush walking and swimming." These were not the customers NDIS goals and they were never agreed upon due to mental health issues and a debilitating physical condition that precluded activities. |
Provider Travel Expenses | Not including this item in your schedule leads to lack of transparency for your customer. This is because the NDIS does not always fully cover travel expenses in the funding. These charges have the potential to deplete the funding before its intended end date. Also remember that these expenses are negotiable. |
Cancellation policies | Not providing a guideline and your policy should there be a cancellation means that you could be out of pocket |
How the agreement will end. Most providers will ask for 14 days. You can also add your policy on breaching this time frame and how this will be handled. | Not showing how the agreement can be ended adds difficulty and could cost both you and your customer. |
Feedback, Complaints and Disputes policy | Failing to clearly communicate and provide your customer with options to raise complaints or disputes regarding their supports, including your invoices is not good business practice. |
Clear outline of services and schedule of supports including fees for your services | Failure to comprehend the significance of the charges for the services offered can negatively impact your customers funding. If you agreement does not clearly state the services being paid for this can lead to a situation where your customers funds my overlap with those allocated to other providers under the same line item. This can potentially trigger an early review. |
Adding the snip from the price guide pertaining to your services is added extra that can elevate your transparency and make it easy for your customer to view the rates and line items without having to find them online. | |
What ever format you decide upon, remember that the agreement should be easy to understand. It should be clear and concise and consider that it will give your customers peace of mind on everyone’s role, the costs involved and when it will end.
A good service agreement sets the expectations from the start to establish structure and rules for an effective working relationship.
The Lama Care Team
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