Newcastle's Refugee Action Network is urging the university to rethink its contract with embattled detention centre operator, Transfield Services.

The University of Newcastle has signed an $88 million five-year contract with Transfield, the global corporation that provides security and welfare services on Nauru and Manus Island for the Federal Government.

The network's Therese Doyle said it is crucial contracted companies are closely scrutinised by the university.

"We're certainly beginning a campaign to urge the university to think again," she said.

"This company has 30 allegations against its staff for child sexual assault that have not been adequately dealt with.

"Yes, they're very serious considerations for us."

In a statement, the university said it "decided to change to a more contemporary maintenance service model to ensure consistency of services".

It said the move was to "maximise the use of the university's resources in education, research and innovation".

The university said it has "noted with concern the recent developments connected to Transfield and will continue to monitor the developments on a regular basis".