Subcontracting supply-chain Fees and Charges Policy

Policy Statement 

Chamber Training (Humber) Ltd. (CTHL) is committed to growing and diversifying the range of courses it delivers to:

  • Widen participation
  • Engage in new and emerging markets
  • Meet the regional and local economic development agenda.

CTHL has taken the strategic decision to subcontract part of its provision to partner organisations who can demonstrate high quality delivery in order to achieve these objectives


The Policy applies to all subcontracted partner organisations.

Improving the Quality of Teaching and Learning

CTHL will support, develop and share good practice through:

  • operational  / quality reviews
  • partnership meetings (quarterly)
  • observations of teaching and learning
  • learner and employer feedback
  • Self-assessment and the Quality Improvement Plan

Management Fees

CTHL charges a management fee to all subcontracted partner organisations, which can range from 10% to 20%.  The fees charged reflect the cost of the procurement process and the management of the contracts.

Subcontractors will receive a high level of support and guidance including:-

  • Management Information Services and data control advice
  • Audit of management systems
  • Delivery and observation of teaching, learning and assessment
  • Support with Funding Rules compliance
  • Regular national updates regarding funding and policy guidance

Not all subcontractors are charged the same management fee, differences in fees are dependent upon the level of support required, the experience of the subcontractor, number and range of training programmes for their target learners; their track record, published success rates and the level of risk as determined by the due diligence process.

Payment Arrangements

Payments will only be made to the Subcontractor once CTHL has received the funding from the Funding Agency or its successor funding body.

CTHL will calculate the amount payable to the Subcontractor each month as follows:

Following validation of the evidence in the ILR return, the appropriate payment will be made to the Subcontractor based on the level of income received from the Funding Agency in that month, with in-year adjustments multiplied by the percentage agreed in the contract.

The Subcontractor will be notified of the payment by receiving a remittance advice, accompanied by the funding report. CTHL will normally pay the Subcontractor via BACS on a monthly basis within five working days of CTHL having received the monies. To the extent that CTHL has not received monies from the SFA on time, it will not be able to pay the subcontractor within this timescale but will pay the subcontractor as soon as reasonably practicable after such monies have been received but no later than 30 days from the last scheduled submission date. Any anomalies that arise following payment will be subject to reconciliation at a later invoice date.

Policy Communication

The Policy is available on-line at  and can be made available in hard copy upon request.  The Policy will be discussed with all current and future subcontractors during contract negotiation meetings.

Publishing Funding Data

Data regarding the actual level of funding paid to each Subcontractor will be published annually within 30 days of the ILR closing.

Policy Review

The Policy will be reviewed on a regular basis and/or when significant changes in the main funding rules occur.

Monitoring and Evaluation

The Head of Training will report annually to both the management group of Chamber Training (Humber) Ltd. and the Board of the Chamber of Commerce.

This policy will be reviewed each November when adjustments, additions or amendments will be made.

The responsibility for ensuring this Policy is a workable and working document will lie with the Head of Training of Chamber Training (Humber).

Subcontracted provision – payments to subcontractors and management fees retained

HETA (UKPRN 10003206)

Contract start 01/08/2016 – contract end 31/07/2017

Type of provision: 16 – 18, 19+ apprenticeships

Paid £26,595 – Retained £2,659.50

Hull Training (UKPRN 10003198)

Contract start 01/08/16 – contract end 31/07/2017

Type of provision: 16 – 18, 19+ apprenticeships

Paid £27,912 – Retained £2,791.20
(as per 26/07/17)