How do I write a Service Agreement?

A service agreement acts as a promise between two people in providing a service for payment in return. Service Agreements are different from an NDIS plan. An NDIS plan lists the NDIS supports participant receives, but a Service Agreement is about delivering those supports.

In this resource we will outline:

The importance of having a Service agreement

Typically, a service provider is engaged to provide a particular service and in return, the participant provides them with funding from their NDIS plan. A service agreement protects both the service provider and the participant, giving each of them recourse when the terms of service are not met.

Service Agreements should be simple and a participant needs to be able to understand it. A service agreement could be a document, use pictures or even be a video depending on a participant’s circumstances.

As a provider you may have your own standard service agreement, but a participant does have the right to create their own with your agreement.

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 total dollar value of service to be provided (Note: prices cannot be increased when NDIS rates increase unless specififed)
  • the payment terms
  • consent for the creation of service bookings.
  • howwhen and where the participant requires the supports to be delivered
  • how long the participant requires the supports to be provided
  • when and how the Service Agreement will be reviewed
  • how the participant and provider will deal with any problems, compliants 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’ – see below to download a free template

5 benefits of having an NDIS service agreement

A service agreement benefits both providers and participants.

  1. Delivery of Supports and Services
    A service agreement sets out the rights and obligations of both the service provider and the participant. A participant, you need to confirm exactly what they are expecting to receive for their funds and as a provider you need to describe exactly what and how these services will be delivered.
  2. Measure Outcomes
    A Service Agreement should specify the outcomes to be achieved for the participant. It should also set out each party’s responsibilities and obligations towards achieving these outcomes. This also helps a provider demonstrate how they have helped a participant achieve their outcomes.
  3. Pricing
    A service agreement sets out the fees that a participant has agreed to pay and states exactly what services are covered by these fees. It will also contain a pricing period (plan length) and terms of payment.
  4. Privacy
    Protect a participant’s privacy: a service agreement states the way in which a provider will collect, use and disclosure a participant’s sensitive personal information.
  5. Cancellations and Changes
    It’s important to specify what notice is needed to change or end a service.
    Finally, when signing a service agreement, make sure you or your nominee read the service agreement 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 out on your behalf first.

This resource has been shared with full consent from MyCareSpace

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