Assessor Resource

Establish customer contracts

Assessment tool

Version 1.0
Issue Date: July 2019

This unit addresses the application of technical communication skills and contractual knowledge to the establishment of contracting goods or services to customers.

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



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

Customer request, goods/services, workplace contract documentation.

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 questioning on underpinning knowledge.

Assessment should be conducted over time and may be in conjunction with assessment of other units of competency

Context of assessment

Assessment may occur on the job or in a workplace simulated facility with relevant commercial contracting practices and systems, 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 backtracking, 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 contracting the sale of goods or services to customers

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 administrative and organisational ability, discretion, judgement and problem solving skills

Workplace environment

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

Work is generally performed within a team or group environment

Customers or suppliers may be internal or external

Information and procedures

Work procedures/instructions

Specification of the required goods or services

Supply system directories, indices, catalogues

Contract law

Legislation/regulation/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
Intended use of goods or services is established in conjunction with the customer 
Implications of customer requests are explained 
Potential options of goods or services are explained describing costs, performance characteristics and implications for use 
Information on characteristics of available goods or services is investigated 
Performance characteristics and costs of potential options are compared in relation to customer identified needs and provisional recommendations are made 
Availability of recommended goods or services is established 
Recommendations or selection of services or goods are made to customer 
Workplace contract format is used, adapting sections as required 
Specification of services or goods to be provided is detailed within contract 
Legal requirements are included within contract details 
Draft contract provision is explained to customers and required amendments agreed 
Formal agreement with terms of the contract by the customer is achieved 


Assessment Cover Sheet

LMFFT5016B - Establish customer contracts
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:



Assessment Record Sheet

LMFFT5016B - Establish customer contracts

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:



Student signature: