Assessor Resource

LMFFT5015B
Establish and implement contracts for external goods or services

Assessment tool

Version 1.0
Issue Date: April 2024


This unit applies to the initiation and completion of contract arrangements with identified suppliers.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)

Prerequisites

Nil

Employability Skills

This unit contains employability skills.



Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Critical aspects of evidence

Locate, interpret and apply relevant information to the contract negotiations and provisions

Apply safety requirements throughout the work sequence, including the use of personal protective clothing and equipment

Establish and implement at least two significant contracts covering the following actions/activities:

establish the specification of the goods/service

identify and access probable suppliers

negotiate contracts considering:

legal and financial considerations requirements for the contract

requirements of workplace policy and procedures

discuss contract provisions and provide necessary explanations

check contract provisions as required by enterprise procedures

finalise contracts and file appropriate documentation

identify the impact of contract outcomes in terms of commercial risks

Suggest improvements to purchasing operations and where appropriate, negotiate changes

Work effectively with others

Resource implications

Goods or services required to be contracted, appropriate purchase order, formal contact or other documentation, enterprise supply or purchasing policy, suppliers

Method of assessment

Assessment methods must confirm consistency of performance over time and in a range of workplace relevant contexts.

Assessment should be by direct observation of tasks and/or samples of work and questioning on underpinning knowledge.

Assessment should be conducted over time and will generally be in conjunction with assessment of other units of competency.

Context of assessment

Assessment may occur on the job or in a simulated workplace facility with relevant equipment, simulated work instructions and deadlines.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

Required skills

research, collect, organise and understand information related to contracting, including the relevant legal, technical, regulatory, fiscal, cultural, environmental and safety requirements

communicate ideas and information in a clear and unambiguous fashion and ensure that all communications satisfy the intent and legal requirements associated with contracting

plan and organise activities, including the preparation, completion, execution and finalisation of the contract within the specified timeframe and to avoid any back tracking, workflow interruptions or wastage

work with others in a team by recognising dependencies and using cooperative approaches to optimise workflow and productivity

use mathematical ideas and techniques to correctly complete calculations required to establish and implement the contract

create and apply systematic problem solving techniques to anticipate contracting problems, avoid supply difficulties

use the workplace technology related to contracting, including calculators, computing/computer-aided systems and relevant contracting software

Required knowledge

enterprise operating procedures and requirements

organisation resources, capacities and capabilities

contract management, preparation, submission and review processes

contract evaluation processes

financial and legal requirements for contracting

relevant legislation relating to contracting and contracting for goods and/or services of the organisation

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Unit scope

This unit covers the work involved in organising the initiation and completion of contract arrangements with identified suppliers. Contracts are generally in written form

The function is undertaken in accordance with established enterprise procedures and practices may include requirements recommended by manufacturers

Unit context

OHS requirements include legislation, building codes, material safety management systems, hazardous substances and dangerous goods codes and safe operating procedures

Work is carried out in accordance with legislative obligations, environmental legislation, relevant health regulations, authorised handling procedures and organisation insurance requirements

Work requires individuals to demonstrate organisational ability, discretion, judgement and problem solving skills

Workplace environment

Work in generally performed on a one-to-one basis with the client or client group

Customers or suppliers may be internal or external

The competency may apply in the workplaces that are involved in the function

Machines/equipment may include:

any machine typically used in the furnishing sector concerned

micro-processor or computer controlled machines

both production and facility equipment used in the enterprise.

Tools

Tools, equipment and spares or consumables may be involved

Information and procedures

Work procedures/instructions

Specification of the required goods or services

Supply system directories, indices, catalogues

Prevailing contract law

Legislation/regulations/national and industry codes and practices relevant to the goods/services

Quality and Australian standards and procedures

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Specifications for the contract are drawn up identifying: 
 
 
Contract details are checked for compliance with enterprise purchasing policy or procedures 
Contract is provided to potential suppliers in accordance with the enterprise practices 
Requirements of the supply contract are discussed 
Contract specification requirements are understood by the relevant parties 
Areas of ambiguity or concern are clarified and resolved 
Negotiations are undertaken with selected supplier for the contracting of required goods or services on a "without prejudice" basis 
Conditions for supply of goods/services are agreed between the enterprise and the supplier, including the determination of key performance indicators 
Alternative suppliers are negotiated with if agreement is unable to be reached 
Contract price and conditions are negotiated and agreed 
Negotiations conform to established enterprise requirements and relevant legislation 
Contract documentation is drafted in accordance with relevant legislation, enterprise procedures and negotiated conditions of service and supply 
Technical support in the drafting of contracts is accessed where required 
Contract provisions are confirmed internally as required by enterprise practices or purchasing policy 
Contract documentation is signed and exchanged between the relevant parties 
Supply of contracted goods or services is monitored and appropriate financial arrangements are approved 
Workplace approved systems are used to file information to ensure traceability of orders and financial transactions 
Organisational systems that require interaction with suppliers are identified and used where appropriate 
Quality assurance procedures for supplied goods/services are identified and applied 
Information about the contract is communicated to appropriate personnel 
Documentation relating to regulatory requirements, including supplier safety information is obtained and stored in accordance with workplace procedures 

Forms

Assessment Cover Sheet

LMFFT5015B - Establish and implement contracts for external goods or services
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

LMFFT5015B - Establish and implement contracts for external goods or services

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: