Subcontracting Supply-chain Fees and Charges Policy

  • We will consider any request for this policy to be made available in an alternative format or language. Please contact Contracts Director.
  • We review our policies regularly to update them and to ensure that they are accessible and fair to all. We welcome suggestions for improving the accessibility or fairness of this policy.
  • Approved by:  SMT

Contact Person: Contracts Director

1.Policy Statement

ICON is committed to growing and diversifying the range of courses it delivers to widen participation, deliver to niche markets, engage in new and emerging markets and meet the regional and local economic development agenda.  In order to achieve this, we have taken the strategic decision to subcontract part of its provision to partner organisations who can demonstrate high-quality delivery.

2. Scope

The Policy applies to all subcontracted partner organisations.

3. Improving the Quality of Teaching and Learning

ICON will support, develop and share good practice through; quality reviews; operations meetings; observations of teaching and learning, health & safety audits and learner and employer feedback.

Subcontractor performance will be monitored at regular data meetings and formal Data Compliance checks will be carried out to ensure veracity of data.

4. Management Fees

ICON retains a management fee from all subcontracted partner organisations; this ranges from 18% to 20%.  The fees charged reflect the costs of the procurement process and the management support needs of the contracts.

Subcontractors working with ICON receive a high level of support and guidance and access to systems, including:-

  • Quality management systems
  • Certification and registration with awarding bodies (if required)
  • Management Information Services and data control advice and guidance
  • Audit of management systems and delivery and observation of teaching, learning and assessment
  • Safeguarding of Young People and Vulnerable Adults procedures
  • Teaching, Learning and Assessment training, coaching and observations
  • CPD Opportunities and planned training and development
  • Policy development
  • 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, their target learners; their track record, published success rates and the level of risk as determined by the due diligence process.

An achievement element, at the rate specified in the Funding Rules, will be applied to subcontractors delivering SFA-funded Adult Skills Budget provision.

5. Payment Arrangements

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

Apprenticeship start payments are subject to a minimum stay of 6 weeks. No start payment will be made until after the minimum stay period.

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

Following validation of the evidence in the ILR return, ICON will send the validated data to the Subcontractor to enable them to create an invoice net of the management fee as agreed in the contract.  ICON will pay the Subcontractor within 30 days of the invoice date and will notify the Subcontractor of the payment being made by BACS.  Any anomalies that arise following payment will be subject to reconciliation at a later date.

6. Policy Communication

The Policy is available online 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.

7. 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.

8. Policy Review

The Policy will be reviewed on a regular basis and/or when significant changes in the Funding Rules occur.

9. Monitoring and Evaluation

The Contracts Director and Head of MIS and Funding will report to the Senior Management Team.



Sub-contractor Provision 2014/15
Subcontractor UKPRN Contract
Start Date
End Date
Provision SFA funding
of subcontract
Funding paid
to subcontractor
Icon Training
Fit For Sport Ltd 10030570 01.08.14 01.11.14 Apprenticeships
16-18 & ASB
£1246.74 £1028.56 £218.18

Sub-contractor Provision 2015/16 – No Sub-contracted provision