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How service agreements can protect you

Updated 28 October, 2020
A person writing a service agreement

This is an article for service providers working with NDIS participants

Do you regularly provide services to NDIS participants? Then it’s a very good idea to set up service agreements with each of these customers.

Service agreements can make life easier for both you and your customers. One of the biggest ways they do this is by providing peace of mind that they’ll be enough funding set aside to cover your services - something we call 'fund quarantining'.

In this article, we look at why service providers should set up service agreements with their customers and how you utilise our fund quarantining.

What is a service agreement?

A service agreement is basically a contract between you and a customer who has an NDIS plan. It states what services you’ll provide, how much you’ll charge for them, when they’ll be delivered, how cancellations or rescheduling of services are organised and any other important information about the support your delivering. A service agreement makes sure that everyone is on the same page before you start providing services. 

Do I have to set up a service agreement?

No – but it’s certainly encouraged by the NDIS. And while they’re not compulsory, there’s lots of benefits to setting them up.

What are the benefits of a service agreement?

There are two main reasons why it’s a good idea to set up service agreements with your NDIS customers…

  • Harmony: By keeping a clear record of what’s been agreed to, service agreements confirm you’re both happy with the arrangement and help to avoid any potential misunderstandings between you and your customer down the track.
     
  • Security: Because they include the cost of each service and how often you’ll be delivering it, service agreements make it easy to see if a customer has enough money in their NDIS plan to cover the full service. This helps your customer feel secure in knowing their services won’t be disrupted and you can relax knowing you have guaranteed cashflow and funding available for your services. It’s a real win-win.

Plan Partners Payment Guarantee

If Plan Partners is your customer’s Plan Manager, we can automatically hold their funding in our system for the amount specified within your service agreement. This ‘fund quarantining’ prevents any funding issues along the way, which is why we call it the Plan Partners Payment Guarantee.

To set up our Plan Partners Payment Guarantee, simply send your service agreement, signed by both you and your customer, to us at admin@planpartners.com.au and our team will handle the rest.

Have a question?

Do you have a question about service agreements or the Plan Partners Payment Guarantee? We're here to help, give us a call on 1300 333 700 or chat with us online.

Top Tips

  • Service agreements are essentially a contract between an NDIS participant and a service provider. They contain all the important information about the service your delivering to protect both you and your customer.
  • Service agreements are legally binding, so take your time to read them closely and ensure you and your customer are both happy with them before you sign.
  • Service agreements aren’t compulsory, so if your customer doesn’t want to set one up you can’t force them to.
  • There’s no official NDIS service agreement format, so you can create your own or simply use our handy guide.
  • If your customer is Plan managed by Plan Partners, we can use a service agreement to put aside the funding they’ll need to pay you. This ensures you’ll get paid and protects them from overspending and disruptions to their services.
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