Service Agreements are important in the NDIS
Whether you are agency, plan or self-managing, the NDIS does not require that you sign a service agreement with your NDIS service providers, unless they are providing Specialist Disability Accommodation (SDA). SDA requires a service agreement.
But service agreements are very important. They are especially important when you are paying someone for a service.
A service agreement is not just for a provider. In fact, it is often more important for the participant. In this resource we will cover:
- What is the purpose of a Service Agreement?
- Who does a service agreement benefit?
- What does an NDIS Service Agreement look like?
- What should a Service Agreement include?
- 5 benefits of having an NDIS service agreement
What is the purpose of a Service Agreement?
A Service Agreement helps make sure:
- The participant and provider have the same expectations of what supports will be delivered
- Both parties agree on how the supports will be delivered
- You get what you are paying for
- You are protected against unexpected events
Who does a service agreement benefit?
A service agreement is not just for the benefit of a service provider. It also protects the participant, giving them a clear reason to cancel or not pay when the service provided is not up to the level specified in the service agreement.
What does an NDIS Service Agreement look like?
Service Agreements should be simple and if you are unsure about its contents, have someone else look over it.
A service agreement could be:
- a document
- use pictures
- be a video
It depends on your circumstances and what is best for you to ensure you can understand it. Your provider may have their own standard service agreement that you may like to use, or you can create your own.
Make sure you or your nominee read the service agreement carefully before you sign it and keep a copy in a safe place.
What should a Service Agreement include?
A service agreement should include:
- the type of supports that will be provided
- the cost of those supports and the total dollar value of service to be provided (note: prices cannot be increased when NDIS rates increase unless specified)
- the payment terms (note: you should never agree to pay in less than 7 days as it can take that long to claim your funds from the NDIS)
- consent for the creation of service bookings (you give the provider permission to create a service booking in the NDIS portal)
- how, when and where the participant requires the supports to be delivered
- for how long the participant requires the supports to be provided (weeks, months)
- when and how the Service Agreement will be reviewed
- how the participant and provider will deal with any problems, complaints or questions that may arise
- what the participant’s responsibilities are under the Service Agreement
- what the provider’s responsibilities are under the Service Agreement
- what notice is needed for the participant or provider to change or end the Service Agreement and how this is done
Note: the type of support along with the total cost and dates can be submitted as a “Schedule of Supports”.
Download and use our FREE Schedule of Supports template
5 benefits of having an NDIS service agreement
- Delivery of supports and services: A Service Agreement sets out the rights and obligations of both the service provider and the participant. As a participant, you need to confirm exactly what, where and how services will be delivered. It’s best to have this in writing so everyone is on the same page.
- Measure outcomes: A Service Agreement should specify the outcomes to be achieved for the participant. It should also set out each party’s responsibilities toward achieving these outcomes. This can also help you show how your outcomes have been achieved with your funding, or if they haven’t, what additional funding you may need.
- Pricing: A service agreement sets out the fees you have agreed to pay and states exactly what services are covered. This helps prevent unexpected charges and supports invoices submitted to the NDIA for payment. It should also include a pricing period so providers cannot increase prices during the agreement (unless stated).
- Privacy: A service agreement should explain how your provider will collect, use and disclose your sensitive personal information.
- Cancellations and changes: It’s important to specify what notice is needed to change or end a service you don’t need or are unhappy with. It also protects you against changes made by the provider.
Finally, when signing a service agreement, make sure you or your nominee read it carefully before you sign it and keep a copy in a safe place. If you don’t understand it, don’t feel pressured into signing it. Have someone check it on your behalf first.
See the NDIS checklist for creating a Service Agreement
Another tip
If there is a problem and you have spoken to the service provider, make a note of the name of the person you spoke to, the date you spoke to them, and what they said.
Then follow it up with an email so you have a record of the conversation.
Sources
This resource has been shared with full consent from MyCareSpace.
