Top tips

INTRODUCTORY OVERVIEW

ensure the service being delivered fits the aims and objectives of your organisation
ensure the service is deliverable within the terms of the contract
consider how delivering the service will affect your organisation’s impartiality and ability to be an advocate for your beneficiaries. Will being reliant on income from a public body limit your ability to criticise its services?
be sure that you understand how delivery will be judged.
apply Full Cost Recovery rules to contracts – including the costs of preparing tenders
check out the tax and VAT implications
check employment law if new work involves taking on staff from another employer. Staff are often protected by TUPE – transfer of undertakings – rules that protect their jobs.

http://www.financehub.org.uk/selling_goods_and_services/contracts_and_sla/toptips.aspa