Pricing, procuring and contracting human services

DCJ pays funds to service providers quarterly in advance for most programs.

We do this because paying in advance:

• gives service providers surety of income within the funding cycle. This is particularly important for smaller organisations who may have tight margins and may be placed under financial pressure by payment in arrears
• costs less for government than it would cost for service providers to support their business cash flow through financing
• is straightforward for DCJ and service providers to administer and monitor.

Sometimes, we do not pay in advance. For example, when:

• there are very specific agreements, with complex commercial arrangements between parties
• funding arrangements are performance-based and  a component of funding is paid following achievement of agreed performance targets and/or client outcomes.