Management Fees

Management Fees

The College will retain a management fee from all subcontracted partner organisations, ranging from 15% to 20%.

All new providers will be charged 20% management fee on contracts for the first year. All successful partners will then drop to a 15% fee for their subsequent contract year.

The fee charges will reflect the cost of the procurement process and the management of the contracts.

The exact mix and level of support for each subcontractor will vary depending on needs. However they will receive a high level of support and guidance including:

• Quality management systems
• Certification and registration with awarding bodies if required
• Management information services and data control advice
• Audit of management systems
• Support & Audit of learner paperwork.
• Curriculum and Quality support.

 Payment Arrangements

• Payments will be made monthly depending on provision type and volume and will be reviewed quarterly
• Following the validation of evidence in the ILR return the College will make the appropriate payment to the subcontractor based on the level of income calculated less the agreed management fee and any adjustments for reconciliation. Specific payment profiles will be attached to each contract
• Payment terms are 30 days from invoice date.

Head of Partnerships

Manage the business and day-to-day relationship with subcontractors

Implementation of the Policy

The policy will be available to all staff on the staff intranet and will be available publicly on the internet.

Sub-contractors will be provided with a copy of the policy.

The policy will be implemented through contract negotiation discussions with subcontractors.

Monitoring and Evaluation of the Policy

This policy is subject to periodic review and will be updated as deemed necessary by the College Executive.