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education.vic.gov.au

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Contractors — Insurance and Contract Arrangements

Policy

The purpose of this policy is to outline requirements relating to insurance and contract arrangements when school councils engage contractors.

Details

School councils sometimes need to engage contractors to provide goods or services to the school. This policy outlines insurance and contract arrangements for these engagements. School councils are also responsible for the management of workplace health and safety when engaging contractors. For policy, information and advice on health and safety obligations for contractors. Refer to Contractor OHS Management.

Insurance requirements

This information describes the indemnity and insurance requirements that must be written into all contracts.

Indemnity

Contracts must contain the following clause:

'The contractor hereby indemnifies the State of Victoria its employees, servants and agents and the school council and its employees, servants and agents against all claims, liability or expenses (including legal costs) relating to any injury to persons or any loss or damage to any property caused (or to the extent contributed) by any act or omission of the contractor or its employees, servants or agents, except to the extent that the loss is directly attributable to the negligence of the State of Victoria, the school council or their employees, servants or agents.

It is not necessary for the State of Victoria or school council to incur expense or make payment before enforcing a right of indemnity conferred by this contract.'

Public liability insurance

All contractors must have current workers compensation and public liability insurance (the Department’s stipulated minimum cover for public liability is $10 million).

Professional indemnity insurance

Contractors supplying advice, for example, architects or engineers must:

  • supply evidence of professional indemnity insurance in an amount of no less than $5 million per any one event and in the aggregate
  • produce evidence from their insurer showing that the insurance is current and covers the professional services being supplied

Standard contracts

School councils should use the Department's standard-form contracts which ensure schools are compliant with the law and that the inherent risks of contracting with third parties is mitigated as much as possible. These standard contracts cover the following:

  • gardening, maintenance or painting services
  • cleaning services
  • school canteen licence
  • hiring school premises by third parties
  • personnel, financial and administration services and student and curriculum services
  • school uniforms
  • pre-school licence

See the Resources tab for access to these contracts.

Relevant legislation

Department policy on insurance and contract requirements when school councils engage contractors

Reviewed 12 February 2021

Policy last updated

15 June 2020

Scope

  • Schools
  • School councils

Contact

Mike Roleff Financial Services Division

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