Contracts in the social domain

What we do

Public law agreements cover related subjects. When considering a competence agreement, it is an agreement in which the government makes an arrangement with the other party regarding the manner in which it will exercise its public law powers.

From more accessible and faster customer support to more efficient, cost-effective internal processes and data insights, digitalization can bring significant benefits in the social sphere. Good preparation is essential, especially since the social atmosphere is, after all, a human matter.

The variety of contracts arises because cities make comprehensive agreements with care providers under the contract. Cities do this on a contractual basis. The institution is committed to the appropriate quality of service provision. The care provision under the
contract and the contracting parties are also the same. Diversity of contracts also occurs unintentionally, whereas diversity between different contracts often promotes harmonization without affecting a municipality's intentions regarding arrangements.

Questions regarding contracts? Then contact us!

Purchasing and tendering in the social domain

Municipalities are bound by the Public Procurement Act 2012 for the procurement of Wmo and youth care. For social and other specific services, the lighter SAS procedure applies (Articles 2.38 and 2.39 of the Public Procurement Act 2012), and many municipalities work with an open house model. With an open house, there is no procurement in the strict sense, but the general principles of procurement law apply in full: equal treatment, non-discrimination, and transparency. For care providers, the procurement method determines whether, and under what conditions, they gain access to the contract. Our lawyers and in-house counsel review procurement documents, assess award criteria, and challenge rejections where necessary. Read more about procurement in the social domain.

Fair price as a lower limit

A municipality may not enter into a contract in the social domain at just any price. Pursuant to Article 2.6.6 of the Social Support Act 2015 (Wmo 2015) and the accompanying Fair Price Decree Wmo 2015, the municipality must establish a fair price based on cost price elements such as wage costs of qualified personnel, reasonable overhead, non-productive hours, and travel and administrative costs. Bids below the fair price must be rejected. In practice, many disputes arise here, for example regarding the indexation of rates or the cost price elements used. We assist both municipalities and care providers in discussions concerning the rate structure.

Drafting and reviewing contracts

A well-drafted contract in the social domain clearly allocates risks and prevents future conflicts. Whether it concerns a framework agreement with a large care institution, a partial agreement under an open house model, or arrangements with a lead contractor and subcontractors: the agreements regarding quality, duration, termination, price changes, and data exchange must be correct. Our legal experts draft agreements, review drafts from the municipality, and negotiate terms. In doing so, we take into account the intersections with privacy in the social domain, as special personal data is almost always processed in these contracts.

Supervision, legality and healthcare fraud

Municipalities are increasingly supervising the legality and quality of care provided. This supervision can lead to recoveries, suspension of payments, or even an investigation into healthcare fraud. It is important for care providers that supervision is exercised proportionately and that the supervisory authority actually possesses the appropriate authority. We assess whether an audit or recovery is legally sound and assist providers in substantive audits and objection procedures. Specifically, we advise municipalities on the structuring of lawful and enforceable supervision.

Contract disputes in the social domain

When parties are unable to reach an agreement amongst themselves, disputes arise regarding, for example, the interpretation of the contract, the rate level, termination, or settlement at the end of an agreement. We assess the contractual position, conduct negotiations, and litigate before the civil or administrative courts where necessary. Our efforts are always aimed at a workable solution, because the municipality and the service provider often need each other for years to come in the social domain.

Frequently asked questions about contracts in the social domain

Does a municipality have to tender a contract in the social domain?

In many cases, yes. The Public Procurement Act 2012 applies to the procurement of Wmo and youth care, often via the lighter SAS procedure or an open house model. The principles of equal treatment, non-discrimination, and transparency also apply to open house.

What is a fair price and who determines it?

Pursuant to Article 2.6.6 of the Wmo 2015 and the Fair Pricing Decree on the Wmo 2015, the municipality establishes a fair price based on fixed cost price elements. This price constitutes a lower limit; tenders below this limit must be rejected.

As a healthcare provider, can I appeal against a rejection or recovery?

Yes. Depending on the procedure and the nature of the decision, you can lodge an objection or appeal, or initiate summary proceedings. We assess your position and deadlines and determine the best course of action together with you.

Social Domain

Contracts in the social domain do not stand alone. They are linked to procurement, subsidies, the Social Support Act (Wmo), the Youth Act , and privacy. MKB Juristen works with mixed teams of lawyers and in-house counsel for clients ranging from international corporations to the baker on the corner. View our full Social Domain for an overview of all topics.