Community Partnerships and
Growth (CPG), Housing
SA
Contract Management Framework
pertaining to the Community Housing Agreement
June 2015
Contents
Glossary
2
Foreword
4
Introduction
5
Scope
6
Key principles
7
Role of the parties
7
Contract initiation
8
1.1
1.2
New funding
Contract execution & handover
Contract performance management
2.1
2.2
2.3
2.4
Reporting
Monitoring
Performance management
Record keeping
Contract administration
3.1
3.2
3.3
3.4
Contract review, extension and variation
Contract termination
Core operating policy variation
Managing contractual disputes
Appendices
1.
2.
3.
4.
5.
6.
Key performance indicators & data sources
Contract initiation: new funding, contract execution & handover process
Contract management: reporting & monitoring process
Contract management: performance management process
Contract administration: contract variation process
Contract administration: management contractual disputes process
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GLOSSARY
community housing means housing for people on a very low, low or moderate
income or for people with additional needs that is delivered by non-government
organisations (registered community housing providers).
Community Housing Agreement means an agreement entered into between the
South Australian Housing Trust (SAHT) and a community housing provider,
pursuant to section 20 of the Community Housing Providers (National Law)
(South Australia) Act 2013 and includes:

The Master Community Housing Agreement, including all attachments,
annexures and schedules to it; and

Any agreement, deed or instrument executed under or which is subject
to or bound by the Master Community Housing Agreement (including but
not limited to project agreements, deeds of statutory charge and preexisting agreements).
community housing assets has the definition as provided for by the Community
Housing Providers (National Law) (South Australia) Act 2013.
Community Housing Customer Register (CHCR) means the register of that
name which comprises a list of persons seeking access to community housing
(or any replacement register determined by South Australian Housing Trust
(SAHT) maintained by SAHT.
community housing provider means an entity that provides community housing.
Community Housing Providers (National Law) (South Australia) Act 2013
means the community housing legislation in South Australia.
contract manager means the Renewal SA employee responsible for managing the
contractual relationship between the South Australian Housing Trust (SAHT) and the
community housing provider under the community housing agreement. The contract
manager will act as the key contact point for community housing providers regarding
contractual matters.
core operating policies mean the policies published by the South Australian Housing
Trust (SAHT) relating to the operation of community housing by community housing
providers and includes, but is not limited to, the Core Operating Policy: Eligibility,
Community Housing Maintenance Accommodation Standards and the Community
Housing Rent Policies. The core operating policies in existence at the date of
execution of the community housing agreement are attached to the Master
Community Housing Agreement as Attachment E.
funder means the South Australian Housing Trust (SAHT).
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Office of Housing Regulation (OHR) is the office established to support the
Registrar, Community Housing to perform the duties assigned under the
Community Housing Providers (National Law) (South Australia) Act 2013.
party means a party to the community housing agreement.
performance report is the report to be analysed by contract managers
periodically throughout the term of the community housing agreement. The
performance report enables contract managers to assess the performance of a
community housing provider in delivering the agreed contractual outcomes and
also provides an early intervention mechanism for addressing any issues or
concerns that may arise.
project property has the definition as provided for by the Master Community
Housing Agreement.
Renewal SA is the trading name of the Urban Renewal Authority and has
delegation to act on behalf of the South Australia Housing Trust (SAHT) in
relation to the funding of community housing in South Australia. This includes,
but is not limited to, responsibility for ensuring community housing providers
comply with the terms of their community housing agreement with the SAHT to
deliver quality community and affordable housing outcomes.
significant issue means a performance issue deemed to have the potential for
serious negative impact on tenants, community housing assets or the reputation
of the community housing sector. A significant issue may also exist where:



Minor performance issues continue to occur or escalate; or
There is a continual lack of engagement by the community housing
provider to address the identified issue; or
There is a continuing absence of adequate reporting required for KPI
assessment.
South Australian Housing Trust (SAHT) is the statutory corporation incorporated
under the provisions of the South Australian Housing Trust Act (1995) (SA) that
is party to a community housing agreement with a community housing provider.
unresolved failure means a community housing provider has not taken
adequate action to remedy an identified significant issue and is deemed noncompliant with the requirements of their community housing agreement.
Unresolved failure will be reported to the Office of Housing Regulation.
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FOREWORD
Community housing providers have managed government subsidised social
and affordable housing program properties and tenancies in South Australia
since 1979. Providers’ management structures vary, as do their size, location
and target group, however all providers deliver housing for disadvantaged
South Australians on low to moderate incomes.
The Community Housing Providers (National Law) (South Australia) Act 2013
(‘the Act’) introduced a standard system of regulation for providers nationally.
This led to the separation of regulatory, policy and funding roles at state
government level and significant sector consolidation.
The new legislative and policy arrangements require providers to register under
the Act by demonstrating compliance with the National Regulatory Code. The
Office of Housing Regulation (OHR), established in 2013, is directly responsible
for the registration and ongoing regulation of registered community housing
providers against this Code.
Renewal SA, acting on behalf of the South Australian Housing Trust (SAHT), is
responsible for funding community housing providers in South Australia. This
includes pro-actively managing the contractual relationship between the two
parties relating to the delivery of quality community housing outcomes for low to
moderate income South Australians.
All funding agreements previously contracted under the repealed South
Australian Co-operative and Community Housing Act 1991 (SA) are to be renegotiated and consolidated under one standard contract, the Community
Housing Agreement (‘the Agreement’). This new Agreement streamlines
reporting requirements and applies consistent performance monitoring by
government across all project properties. A suite of core operating policies
linked to the Agreement further establish how community housing properties
are to be managed.
The purpose of this Contract Management Framework is to ensure the
contractual relationship between the SAHT and community housing providers is
managed equitably, transparently and accountably by Renewal SA.
Renewal SA will continue to work in partnership with the sector to further refine
these working arrangements and practices.
Diagram: Links between legislation, policy and the community housing agreement
LEGISLATION
SA GOVT POLICY & PROCEDURES
DEPARTMENTAL POLICY & PROCEDURES
COMMUNITY
HOUSING
AGREEMENT
COMMUNITY HOUSING CORE
OPERATING POLICY & PROCEDURES
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Introduction
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SCOPE
This document sets out Renewal SA’s approach in this regard as it relates to a
community housing agreement entered into by registered community housing
providers, pursuant to the Community Housing Providers (National Law) (South
Australia) Act 2013.
The document focuses on long term management contracts where title is held
by the community housing provider. Contracts for development and
construction are not dealt with in detail. Nor does the document deal with
leasehold arrangements between SAHT and community housing providers.
A robust contract management framework will guide both contract parties to
take action to improve community housing delivery.
It also assists Renewal SA (on behalf of the SAHT) to:
 Ensure delivery of funding and support for the provision of social and
affordable housing outcomes for low to moderate income South
Australians;
 Safeguard public contributions and advocate for the interests of the State
Government;
 Provide mechanisms which ensure tenancy services are fair and
accountable;
 Build strong working relationships with community housing providers;
 Co-ordinate streamlined data collection for performance analysis and
statistical purposes; and
 Meet internal and external reporting accountabilities and responsibilities.
The framework is presented in three parts:
1. Contract initiation
2. Contract performance management
3. Contract administration
Contract
Initiation
Contract
Administration
Contract
Performance
Management
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KEY PRINCIPLES
The following key principles underpin this framework:
►
►
►
►
►
►
►
Quality service – The delivery of quality housing outcomes for low to
moderate income South Australians is at the forefront of all contract
related actions and decisions.
Professionalism – Applying best practice in contract and performance
management, and implementing government policies without bias or favour.
Trust and respect – Building strong working relationships between the
contracted parties based on mutual understanding and appreciation of
their objectives and constraints, and respect for their independence.
Collaboration and engagement– Demonstrating a commitment to
continued positive working relationships between the parties through
open communication, early identification of potential performance
concerns and constructive appraisal/feedback.
Honesty and integrity – Demonstrating and valuing decision-making
which is impartial, ethical and transparent.
Courage and tenacity – Working persistently over the long term to
ensure that contract outcomes are achieved and are in the best interest
of tenants.
Sustainability – Ensuring continued relevance and efficiency through
regular review of both the mutual expectations of the parties and
Renewal SA’s community housing contract management framework.
These principles closely align with the South Australian Public Sector Values
which guide the behaviours and practices of all public sector employees,
regardless of position, technical expertise, or location.
ROLE OF THE PARTIES
Contract management brings together the funder (SAHT) and the community
housing provider in a relationship that works to deliver agreed social and
affordable housing outcomes. The Community Housing Agreement, which
encompasses the Master Community Housing Agreement and related project
agreements, prescribe the obligations, rights, responsibilities and mutual
intentions of the signatories.
South Australian Housing Trust (SAHT) is the legal entity that is party to the
Agreement with registered community housing providers.
Renewal SA is responsible for administering the contractual relationship
between the SAHT and registered community housing providers. Each provider
will be assigned a contract manager within Renewal SA who will act as their key
contact point for all contract related matters.
Community housing providers are responsible for achieving agreed outcomes
and providing accurate, complete data in a timely manner to demonstrate
achievement.
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Contract Initiation
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Contract Initiation
Contract initiation relates to the arrangements preceding entry into a new
community housing agreement. These arrangements include:


Determining funding allocation and related terms and conditions
Contract execution and handover
1.1 New funding
Renewal SA will follow approved internal procedures relating to decisions about
the allocation of available government funding for the delivery of community
housing.
These procedures provide for:



Clear project deliverables and objectives to be established prior to
release of available funding;
Application of relevant state government procurement processes; and
Financial and contract approvals within appropriate instruments of
delegation.
1.2 Contract execution and handover
Renewal SA will follow approved internal procedures when negotiating and
executing a new community housing agreement.
These procedures provide for:






An initial written request to the provider for authorised contact officers;
Preparation of the Master Agreement including:
o Property details by reconciling property and project data held by
Renewal SA on the community housing database (Schedule 1 of
the Agreement)
o Portfolio profile (Annexure A of the Agreement)
o Key Performance Indicators (KPIs) and agreed benchmarks
o Project agreements and expiry dates
o Core operating policies and procedures
Review and signing of the prepared Agreement;
Opportunity for negotiated changes where necessary to address specific
circumstances of individual providers;
Preparation of final Agreement for signature; and
Assignment and notification of contract manager.
(Refer Appendix 2: Contract initiation - new funding, contract execution and handover
process flow diagram)
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Contract Performance Management
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Contract Performance Management
Contract management includes the processes for proactively managing the
contractual relationship to ensure that agreed outcomes are achieved. These
processes include:




Reporting (the data collected against Key Performance Indicators);
Monitoring (how that data is assessed);
Performance Management (the action taken where data provided does
not demonstrate agreed contractual outcomes have been met); and
Record keeping.
2.1 Reporting
2.1.1 Key Performance Indicators :
Key Performance Indicators (KPIs) are quantitative or qualitative measurements
that help determine the extent to which agreed contractual outcomes have been
achieved. The KPIs against which a provider’s performance will be measured
are attached at Appendix 1 and broadly relate to:
1. Housing the right people;
2. Providing fair and accountable tenancy services; and
3. Managing project properties
These measures reflect key State Government expectations and priorities of
providing affordable housing for people on low to moderate incomes, including
vulnerable households requiring support to maintain their tenancy.
In setting these measures, Renewal SA has:




Allowed greater flexibility for the utilisation of project properties across
the portfolio of individual providers;
Minimised reporting obligations of community housing providers;
Developed a common minimum data set allowing for tailored thresholds
which reflect the individual requirements of programs and providers
where necessary; and
Recognised that the parties’ expectations and/or the service environment
may change over time and agreed program/provider specific
requirements will require regular review.
2.1.2 Regular reporting:
Community housing providers are required to provide regular data returns (e.g.
quarterly/annually as required) which demonstrate performance against the
KPIs, agreed targets and/or benchmarks. Providers are also responsible for the
correction of any identified data errors and for notifying their contract manager
of any non-compliance with the requirements of their Agreement outside of the
regular data collection and assessment period.
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In addition to the regular data return, other data held by government will also be
utilised to assess the provider’s performance including (but not limited to):



The Australian Institute of Health and Welfare (AIHW) annual data
collection;
Reporting extracted from the Community Housing Customer Register
(CHCR) and other Renewal SA administered systems; and
Any performance related complaints received which directly relate to
the requirements of the community housing agreement.
(Refer Appendix 1: Key Performance Indicators and data sources).
2.2 Monitoring
2.2.1 Monitoring proportionate to risk:
Monitoring intensity will be proportionate to identified program risks and the
agreed outcomes for each individual provider. Renewal SA will:



Identify risk to contractual outcomes on a provider by provider basis;
Evaluate risk and determine where impacts are greatest; and
Manage contractual risks by developing appropriate risk mitigation
strategies. It is not intended that these strategies be onerous or complex
but will require periodic review through the lifecycle of the contract.
For example:
 A file history of complaints regarding maintenance, and lower than
average capital maintenance expenditure may trigger:
→ A focus on physical standards for a defined period; and/or
→ Regular supportive contact by the contract manager

A provider with a large proportion of required specialised housing
outcomes may need a stronger focus on program specific allocation
targets and service partnership arrangements than a provider with a
more general allocation profile.
2.2.2 Consistent engagement:
Strong, effective working relationships between the parties are critical to ensure
timely and accurate reporting is provided to meet agreed contractual
requirements. Contract managers will take care to ensure that contact with
providers is consistent and objective. Contact on all but the most minor matters
will be in writing or confirmed in writing (email acceptable).
Providers will designate an individual or small group of individuals authorised to
provide reliable and approved information to Renewal SA for the purpose of
monitoring contractual performance. Renewal SA will assign a contract
manager to each provider who will provide feedback on any identified trends or
emerging performance issues requiring further scrutiny or discussion.
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Contract managers will engage with providers quarterly, as a minimum.
Regular data returns will be required quarterly or annually in most cases.
Providers can liaise with their contract manager at any time to relay information
that may impact their ability to meet reporting requirements or contracted
outcomes.
2.2.3 Evidence-based analysis:
Data submitted will be validated by the contract manager against previously
submitted information and checked to ensure it is reasonable and accurate. A
performance measure will be assigned for each KPI together with agreed
benchmarks where applicable. These will be outlined in the individual
Agreement of each provider and may be varied on the basis of operational
history.
A consistent and objective assessment will be applied across all
contracted community housing providers.
The contract manager will seek to promptly identify any emerging performance
issues which potentially compromise the ability of the provider to meet KPIs in
the longer term. The contract manager will identify any potential performance
issues early and, together with the provider, agree on any remedial action
required.
A quarterly performance report will be prepared for each individual provider
identifying where:
► KPIs are met (no further action is required)
► Potential performance concerns have been identified (further
investigation and remedial action to be agreed)
► Significant performance issue/s are evident (urgent remedial
action required)
This performance report will be provided in writing to the provider as soon as
practicable following the end of the reporting period.
Contract managers will not enter into discussions on matters regulated by the
Office of Housing Regulation (OHR). Where such issues emerge, the contract
manager will ensure any information exchange with the OHR is in accordance
with the Operating Arrangements agreed between Renewal SA and the OHR.
(Refer Appendix 3: Contract reporting and monitoring process flow diagram)
2.3 Performance management
Performance management refers to the process of ensuring both parties to an
Agreement meet their obligations as effectively as possible in order to achieve
the agreed outcomes.
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Provider performance against agreed contractual outcomes will be managed by
Renewal SA in three stages:
General
performance
management
Significant issue
management
Breach
management
This performance management approach assumes most issues arising should
be able to be easily remedied without requiring any formal action.
Stage 3 Breach
management
Stage 2 - Significant issue
management
Stage 1 - General performance management
Stage 1: General performance management
Any potential performance concerns will be discussed with the provider as soon
as possible.
Strategies to address these concerns will be developed in
consultation between the contract manager and provider.
It is expected most issues arising during the performance management process
will be easily remedied through agreed informal action.
Depending upon the severity and/or recurrence of the issue/s, a more formal
approach may be necessary including:


Developing a formal Performance Management Plan to remedy the
identified performance concern/s; and/or
Involving senior management from both parties in formal discussions.
Where a Performance Management Plan is required it will be developed in
consultation between the contract manager and provider and will include:
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
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Formal documentation of the issue/s;
Any discussion or clarification required;
A plan for resolution, with clear agreed action/s and set timeframes; and
A method to monitor the plan through to successful completion.
In some cases monitoring and frequency of reporting may be adjusted
temporarily to reflect a potentially higher contractual risk than applied at
contract initiation.
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Stage 2: Significant issue management
Any identified performance concerns which have the potential for serious
negative impact on tenants, community housing assets or the reputation of the
community housing sector, will be deemed a significant issue.
Instances which may also prompt an issue/s to be deemed significant are:



The recurrence or escalation of more minor performance issues; and
A continuing lack of engagement by the provider or evidence of effort to
address the issues; or
An absence of adequate reporting by the provider to determine
performance against KPIs.
Any issues identified as significant will immediately escalate to stage 2 of the
performance management process triggering further investigation by the
contract manager. This may result in the earliest practicable issue of a
Significant Issue Notice requiring the provider to remedy the issue/s within a
specified timeframe or risk escalated performance action (Stage 3: Breach
Management).
The Office for Housing Regulation (OHR) will be notified of any Significant Issue
Notice issued, indicating unresolved failure by the registered provider to
comply with the requirements of their community housing agreement. Should
the provider remedy the performance issue/s within the agreed period provided
by the Notice, the OHR will similarly be advised.
The issuing of this Notice may trigger the application of more rigorous reporting
requirements until the matter has been resolved.
Stage 3: Breach management
Where the provider has not remedied the identified performance concerns or
refuses to enter into a Performance Management Plan, a breach of Agreement
may be declared.
A breach may also be declared immediately (i.e. Stages 1 and 2 skipped) upon
identification of an issue deemed by Renewal SA to be:


Serious
i.e. has a serious negative effect or has the potential to have a serious
negative affect on tenant health and/or wellbeing or on a project
property/properties;
or
Unlawful
e.g. fraudulent activity, abuse etc.
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Where there is a confirmed breach, a prompt and thorough approach will be
taken by Renewal SA acting on behalf of the SAHT. A Breach Notice will be
issued formally declaring:
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

That the provider is in breach of contractual obligations;
That the provider has failed to take action to remedy the breach as
directed;
Whether the breach is a property specific breach or portfolio-wide
breach; and
Action that will be taken should the breach not be remedied within the
time period provided*.
The Office of Housing Regulation will also receive notification of the declared
Breach.
A provider may at any time exercise its right to resolve the matter through the
dispute resolution procedure provided for in the Agreement (clause 31).
*Note: Enforcement of the statutory charge (‘the charge’) is available as an
instrument of last resort. If a provider fails to comply with the terms of their
Community Housing Agreement, the Charge over project property/properties
may
be enforced in accordance with the process prescribed by the Community
Housing Providers (National Law) (South Australia) Act 2013 (Division 3,
Section 23).
(Refer Appendix 4: Contract Performance Management Process Flow)
2.4 Record keeping
Records to be created and retained by Renewal SA during the life of the
Agreement may include but are not limited to:
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The initial Agreement and all variations made to the Agreement
Contractual risk assessments
All substantive communications with and from the provider
Data returns
Performance reports, desk top analyses
Records of disputes, related discussions and negotiations
Assistance or expert advice received
Performance management plans
Significant issue notices
Breach notices
Documents created and all related communications between contract managers
and contracted community housing providers will be securely stored and
recorded in accordance with State Government Privacy Principles and records
management protocols, processes and systems.
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Contract Administration
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Contract Administration
Contract Administration includes:
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►
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Contract review and variation;
Contract termination;
Core operating policy variation; and
Managing contractual disputes
3.1 Contract review and variation
Provisions to review and vary contract provisions are a standard feature of the
Agreement. A review of the Agreement will be undertaken at least once every
five years by consultation between the parties.
Any request for variation to the Agreement should be formally made in writing
and assessed by Renewal SA to ensure it does not breach any existing legal,
contractual or policy requirements. If agreed, a variation must be made to the
Agreement and signed by both parties prior to any change being acted upon by
either party.
Variations to the Portfolio Profile at Annexure A of the Agreement will be made
as required to reflect changes to Project Property (e.g. sales, transfers, new
acquisitions).
(Refer Appendix 5: Contract Variation Process Flow)
3.2 Contract Termination
The Agreement may be terminated at any time by mutual written agreement
between the parties. Renewal SA acting on behalf of the SAHT may terminate
the Agreement:


Immediately upon written advice to the provider, if they cease to be
registered under the Act; or
Where a provider purports to assign any of its rights or obligations under
the Agreement which would cause them to be in breach of the
Agreement. In this case the Agreement will be terminated after seven
days’ written notice to the provider.
(Refer the Agreement Part 5, clause 23-24)
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3.3 Core operating policy variation
The Agreement prescribes a set of core operating policies including:
eligibility, tenant allocations and tenure, appeals, disability access and
inclusion, property acquisition and disposal, and rent management. These
policies may be varied or added to from time to time by Renewal SA provided:
► Community housing providers have had prior notice of the proposed
variation; and
► Have been consulted with prior to its implementation on the proposed
variation or new policy
► Renewal SA has considered in good faith any issues raised by the
Community Housing Provider through consultation.
Wherever possible the CHP will be given no less than three months’ prior notice
of the commencement of the varied or new core operating policy.
Community housing core operating policies will cover general contractual
obligations and will not include matters appropriately dealt with by the OHR.
3.4 Managing contractual disputes
As a general rule, a disagreement becomes a dispute when it is not possible for
the parties to resolve it without resorting to a formal resolution mechanism.
Disputes and disagreements arise when the parties cannot agree on the
interpretation of contract provisions, the definition of deliverables, meeting
performance standards and /or the effect of unexpected events, or where
parties enter into agreements without informed commitment to terms.
Most disagreements are of a minor nature and can be readily resolved
informally between the parties. Where the parties cannot reach agreement, it
is important that early action be taken to avoid escalating the issue and to
minimise cost for both parties.
As provided for in the Agreement( clause 31), contract managers will follow
approved procedures when managing all formal disputes. This involves:


The lodgement of a formal dispute notice by the aggrieved party; and
Consideration of the issues by nominated independent representatives
of the Parties (the “Negotiators”).
Where the issue cannot be resolved by the independent representatives, the
executive negotiators will meet to seek resolution. Legal action through the
court system is considered an action of last resort.
(Refer Appendix 6: Contract dispute resolution process flow)
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Appendices
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Key Performance Indicators for sector consultation
Housing the right people
Key Performance Indicator
CHP houses eligible people
only
Managing Project Properties
Providing fair &
accountable tenancy
services
CHP makes appropriate
tenant allocations to
Project properties
Benchmark for Sector consultation
100% new tenant allocations meet SAHT base government eligibility criteria
as defined in core operating policies.
100% of new tenant allocations meet the income assets and/or needs test
as per tenancy types defined in the Eligibility Core Operating Policy
(general).
100% of new tenant allocations meet the income assets and/or needs test
as per tenancy types defined in the Eligibility Core Operating Policy
(supported).
100% of new tenant allocations meet the income assets and/or needs test
as per tenancy types defined in the Eligibility Core Operating Policy
(affordable).
No less than 95% of the Portfolio Profile Tenancy Type outcomes in the
Annexure to Schedule 2 are met over a 12 month period to 30 June each
year and reported by CHP during the term.
No less than 85% of all new allocations made across the portfolio are
identified as Category 1 tenants on the Community Housing Customer
Register (for CHPs with all tenant types in their portfolio). Note % is
determined at a CHP level, example only.
100% of new allocations of General Community Housing and Supported
tenancy types as set out in the Eligibility Core Operating Policy are sourced
from the Community Housing Customer Register.
Frequency
Reporting sources
Quarterly data return (replaces monthly capital
contribution report).
Derived from CHCR - no reporting by CHP required.
Quarterly with
annual survey
verification
Derived from CHCR - no reporting by CHP required.
Derived from CHCR - no reporting by CHP required.
Annually
Quarterly
monitoring with
annual survey
verification
Derived from the annual AIHW Data Collection.
Derived from CHCR - no reporting by CHP required.
Derived from CHCR and annual AIHW Data Collection.
CHP applies the relevant
rent policies fairly and
appropriately.
100% of tenant rents are being calculated in accordance with the Core
Operating Policy relating to rent applicable to the tenant type.
Annually
Derived from the annual AIHW Data Collection (small
sample to be selected annually for review by the
Contract Manager).
CHP manages vacancies to
optimise access to
government-subsidised
housing
Vacancies over 28 days do not exceed 3% of total tenancies within Project
Properties per quarter as defined.
Quarterly
Quarterly data return (replaces monthly capital
contribution report).
CHP maintains all Project
Properties to the
designated standard
All habitable Project Properties meet Community Housing Maintenance
Accommodation Standards 2014 and Housing Improvement (Standards)
Regulations 2007 (SA).
Annually
Small sample to be inspected - 'high risk' properties to
be identified from summary maintenance plan/stock
inspection reports, or random sample.
CHP undertakes adequate
planning to ensure quality
of properties is maintained
to designated standard
CHP maintains appropriate
insurance coverage across
portfolio.
Tier 1 & 2: 100% of project properties are included in an annually submitted
asset management plan that provides evidence of appropriate planning,
budgeting and forecasting of funds for maintenance.
Tier 3: 100% of project properties are included in the prescribed format,
biennial Summary Maintenance Plan that provides evidence of appropriate
planning, budgeting and forecasting of funds for maintenance.
100% of Project properties have insurance coverage which complies with
the insurance requirements under this agreement.
Tier 1 & 2 via sighting 5yr asset management plan
Tier 1 & 2 Annually
annually and tier 3 via 10 yr Summary Maintenance
Tier 3 Biennially
Plan biennially.
Annually
Annual insurance certificate (certificate not required
for debentured properties).
Quarterly data return - replaces monthly capital contribution report and will continue to include CCs &
vacancy reporting at a property level (vacancy reporting will extend to all project properties).
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Appendix 2
Contract Initiation – Registered Community Housing Providers
New Funding
Receive advice
Contract Execution
Sign 2 x contracts
and return to CPG
Receive
contract
Contract Handover
Manage property
build and advise CPG
as property/s become
tenantable
Commence tenancy
CHP
No
Change
requested?
No
Receive and review
Agreement
Advise CHP of
approval for new
project properties
Send 2x contract
documents to CHP
Yes
Arrange 2x
contracts to be
signed by SAHT
SAHT is managing
the construction?
Yes
Advise CHP when
properties available
for tenancy
No
Properties
transferred to CHP
(refer Property
Acquisition and
Disposal Policy)
Go to Reporting &
Monitoring Process
CPG
Undertake relevant
procurement
process
Yes
New funding/
properties available
Define project
outcomes
Prepare relevant
legal (contract)
documentation incl.
expiry dates (refer
Contract Variation if
required)
Return 1x copy of
contract to CHP
New property
construction to
occur as part of
the contract?
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Appendix 3
Start
Data Returns
submitted
(quarterly & annual)
Is the data provided
complete?
CPG
CHP
Contract Management: Contract Reporting and Monitoring Process Flow
Adjusts data/report
No
Desktop analysis to
consider:
- data integrity &
timeliness
- achievement of
benchmarks
- annual data
comparisons to
determine
consistency
Contacts CHP to
resolve
No
System
Other systems
Data entry into
system
Annual
AIHW Data
Collection
data
CHCR data
No
Data integrity
Yes
No
Potential
performance
concern
identified
Yes
Yes
Send CHP written
feedback
Liaise with CHP re
contributing factors
Is performance
action required?
Yes
Go to Performance
Management
process
Quarterly
Performance
Report/Annual
review report
generated
Capital
Contribution
annual data
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Appendix 4
Contract Management: Performance Management Process Flow Diagram
Stage 1 – General Performance Management
Stage 3 –
Breach Management
Stage 2 – Significant Issue Management
Reporting, Auditing &
Monitoring process
YES
Consider identified
performance concerns and
determine action required
Are any issues deemed
“Significant”?
Will a Breach of
Agreement be
recommended?
YES
NO
Provide written feedback
to CHP including copy of
the Performance Report
NO
YES
Breach of Agreement
recommended to Director,
CPG
Is a Breach of
Agreement declared?
YES
Breach
Breach Notice
Notice
issued
issued
NO
Significant Issue Notice
issued
Is a Performance
Management Plan
required?
NO
OHR
OHR notified
notified
YES
Discuss identified performance
concerns with CHP and agree
remedial action and
timeframes
Breach Remedied
OHR notified
NO
YES
NO
Performance
Management Plan
prepared
Are performance
issues remedied as per
terms of the Notice?
Exercise rights under S23 of
the Act to enforce the Charge
Send to CHP for signature
YES
Advise CHP in writing of
amended timeframe and
that failure to remedy will
result in escalated action
Monitor
Performance
Management Plan
OHR notified
NO
Are the issues resolved?
NO
Is this the second
failure to remedy?
Confirm in writing to
the CHP that the
performance concerns
have been remedied
YES
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Appendix 5
Contract Administration: Contract Variation Process Flow
CHP
Go to Contract Dispute
Resolution process
(where necessary)
No
Variation Request
made in writing
Re-negotiate
variation with CHP
Negotiations held
with CHP
Variation agreed?
Legal documents
signed and
returned
Yes
No
Assess Variation
Request with regards
to impact, reason &
feasibility
Yes
Variation formally
approved?
Varied legal
documents
prepared for
signature
Yes
SAHT signs varied
legal documents
Copy sent to CHP
Record variations
and amend
reporting/
monitoring regime
where necessary
Action the variation
as required
Go to Reporting and
Monitoring process
CPG
Are any legal,
contractual, policy and/
or financial issues
identified?
No
SAHT variation
required
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Appendix 6
Contract Administration: Managing Contractual Disputes Process Flow Diagram
Executive Negotiators
Negotiators
Parties Representatives
Phase 1: Dispute Arises
Representative of
aggrieved Party to make
contact with other Party
Phase 2: Informal Negotiation
Issues and possible
resolution discussed
Has the issue
been resolved?
Yes
Phase 3: Formal Negotiation
No
Formal Dispute
Notice completed
and submitted by
aggrieved Party
Phase 4: Possible Legal Proceedings
Receipt of Formal Dispute
Notice acknowledged in
writing by receiving party
and submitted to the
nominated Negotiators
within 10 business days
End
Nominated Negotiators
meet within 10 business
days to attempt to resolve
dispute
Has the Dispute
been resolved?
Yes
End
No
Written summary
provided to
Executive
Negotiators
Executive Negotiators
must meet within 10
business days to attempt
to resolve dispute
Has the Dispute
been resolved?
No
Legal advice and court
proceedings may be
considered as per Section 40
of the Master Agreement
Yes
Written summary
provided to CPG
and CHP
End
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