Subcontractors – so costly to manage?

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The subject of subcontracting and the management fees charged by lead providers made the news again this week which was bound to catch my attention especially with the headline of: ‘National Audit Office to examine provider topslicing scandal’.

And as usual there are the claims to justify administration fees of up to 35% as in one example the college is reported to have said “The weighting we give to management fees reflects the increasing costs of administration associated with sub-contracting – the closer involvement and the increased demand on resources – required by all colleges with sub-contracted provision”. [Read more…]