Subcontracting

Subcontracting raises risk for ASTP contractors. Careful consideration is needed to ensure all the required legal and contractual obligations can be met.

Approval to subcontract must be obtained from the ASTP. The ASTP reserves the right in its absolute discretion, not to approve an application for subcontracting.

The subcontractor must not perform any services until, and only if, approved by the ASTP to provide such services.

Is subcontracting right for me?

When considering if subcontracting is required, ask the following questions:

  • Am I able to ensure the quality of the subcontractor's services and willing to accept responsibility for their actions?
  • Can I ensure that the subcontractors and their employees are paid the required award rates?
  • Is subcontracting suitable for my business and worth the risk?
  • Do I have the level of resources required to audit the subcontractor to ensure compliance with the Contract Agreement?

Seeking approval to subcontract

In seeking approval, the contractor must follow these steps:

  1. Seek independent legal advice and then contact the ASTP to enquire if subcontracting is suitable for your business
  2. Complete the Subcontracting approval application form (PDF 131.23KB)
  3. Email the completed form to businessassurance.astp@det.nsw.edu.au.

Following receipt of these details, the ASTP will contact the contractor to discuss the next steps.

Subcontracting template

Where a contractor has obtained approval to subcontract they must use the subcontracting template (PDF 884.64KB). Once completed and signed by both parties, a signed copy must be provided to the ASTP.

The template is designed to ensure that both the contractor and the subcontractor agree to the ASTP service requirements.

The ASTP does not review or approve any additional terms included in the subcontracting template nor offer any legal advice supporting the use of this template.

Where required, contractors must seek their own legal advice on the arrangements for subcontracting.

Following approval to subcontract, contractors may be audited to ensure compliance with the Contract Agreement (PDF 1063.54KB).

Not having approval to subcontract while subcontracting will result in substantial contractual penalties including the possible termination of the head agreement.

Find out the difference between engaging drivers vs subcontracting.

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