This Policy covers all supply-chain fees and charges applicable to subcontractors.

The policy applies to all supply chain activity supported with funds supplied by the Greater Manchester Combine Authority and Education and Skills Funding Agency or any successor organisations. Where a partnership or collaboration is formed, these arrangements should not be confused with subcontracting.

Responsibility for implementation

The Managing Director is responsible for providing adequate advice as the basis for the setting of fees, course costing and other related issues.

Policy Objectives

Reasoning for subcontracting

The Training Brokers is committed to growing and diversifying the range of programmes and services it delivers in order to widen participation and engage with new learners and support the needs of local, regional and national labour market demands.

Payment Terms

Subcontractors will be asked to complete a delivery profile which will complete part of the contract of engagement. Dependent on profile income The Training Brokers will define set payment periods based on ILR submission dates. All invoices will paid on 30 days terms.

Setting the Fees and Charges

The standard The Training Brokers management fee is 15% of all funding drawn down against the provision to be delivered. This includes the minimum amount of quality assurance activity that The Training Brokers would attach to a low risk sub-contractor.

Further charges to cover additional costs may be added to the base 15% fee to cover the cost to The Training Brokers of any additional support that The Training Brokers deems necessary to ensure the quality of teaching and learning and the success rates of any sub contracted provision.

Additional cost is determined using a number of risk factors listed on the Risk Factor Table (below). It is designed to ensure that the cost of any additional support provided to a subcontractor is covered through the funding retained.

Once the risk band has been identified (‘High’, ‘Medium’ or ‘Low’), additional support and the subsequent extra fees required will be negotiated with that sub-contractor and may include:

• Additional site visits

• Additional lesson observation

• Additional tutor support

• More rigorous verification

The risk factors will be recalculated and negotiated each year at contract renewal, giving sub-contractors the opportunity to reduce their fees through continuous improvement.

The Risk Factor Table

Criteria                                                       Weight                Element                                                             Score                 Weighted score

Contract Value                                                   1                <£100k £100k – £200k >£200k                     1 2 3

Timely success rates                                         4                >5% above target                                               1

performance                                                                         Within 5% of target Below 5% of target        2 3

Standard of administration                            2                Excellent Good Requires improvement       1 2 3

Quality Reviews                                                 3               Excellent Good Requires improvement        1 2 3 10 4

Unsatisfactory New provider (no reviews)

Score                                                            Risk                                        Percentage retained

11 – 15                                                          Low                                          15%

16 – 24                                                          Medium                                   20%

25 – 34                                                          High                                          25%

35+                                                                Very High                                Consider termination

The Training Brokers may also retain funding to cover the cost of any funded activity that it might undertake on behalf of the sub-contractor such as:

• Awarding organisation fees and charges

• Hiring of facilities/equipment within/from The Training Brokers

• Support in recruitment, initial assessment and diagnostic assessment of learners

• Assessment of learning

• Shared teaching or other delivery responsibilities e.g. where The Training Brokers provides the teacher for certain elements of the programme

• Internal Verification


This policy will be reviewed annually in the academic year and updated as required