Sub-Contracting in Apprenticeships
System People Ltd: Approach to Sub-contracting in Apprenticeships
System People delivers apprenticeships in the following sectors:
- Business and Administration
- Logistics
- Education
- Child Care
In normal circumstances, System People will plan with the intention of delivering all parts of the programme itself,
without the use of subcontractors. We will never subcontract to meet short-term funding objectives and will only agree
to subcontract delivery of any part of an apprenticeship in the following circumstances:
- To ensure geographic coverage for learners
- To fill the gaps in niche or expert provision, or provide better access to training facilities
In all these cases, the decision to subcontract will be discussed with the employer before entering into a subcontract
arrangement and will be recorded in the agreement for services with the employer. System People will never subcontract
to meet short term funding objectives.
Where any element of the programme is subcontracted to the employer or another provider, they must be either a Main or
Supporting Provider on ESFA’s register of Apprentice Training Providers or a registered Employer Provider.
All subcontracted provision will be subject to System People’s Subcontracting Policy for ESFA Funded programmes, which
sets out how we will monitor and quality assure subcontracted provision. This policy applies to all subcontracted
provision, including that provided by employer providers, main providers or supporting providers.
Costs claimed by the subcontractor are to deliver the mandatory LGV licence element of the apprenticeship standard and
will be proportionate to the amount of delivery based on a reasonable market rate as determined at the time of
subcontracting.
Payment to employer providers will be made to cover direct costs only as required in the ESFA funding rules. Employers
subcontracted to deliver part of an apprenticeship must evidence the direct costs of their delivery in order to claim
payment.
System People will not make any charge for the management of subcontractors who deliver the driver training element of
the LGV standard. Other subcontractor payments will be subject to a 15% charge which covers the cost of monitoring
visits, report writing and due diligence checks. The activity undertaken to monitor a subcontractor is set out in the
Policy.