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Elements and Performance Criteria

  1. Negotiate terms of contracts with suppliers
  2. Prepare contracts
  3. Finalise contracts

Required Skills

Required skills

culturally appropriate communication skills to relate to people from diverse backgrounds and people with diverse abilities

communication and negotiation skills to liaise with suppliers and reach agreement with suppliers on contracts

literacy skills to draft concepts and write reports containing complex concepts

technology application skills to use a range of software programs relevant to purchasing and contracting

Required knowledge

identification and overview knowledge of key provisions of relevant legislation from all levels of government that affects business operations codes of practice and national standards such as

consumer protection legislation

contract law

import of goods and services where relevant

sale of goods legislation

Trade Practices Act

organisational practices policies and procedures for purchasing

product knowledge about the goods and services being supplied

purchasing and procurement principles for

accountability

probity and transparency

risk management

value for money

Evidence Required

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

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential

documented agreement of terms with suppliers

drafting and completion of a contract with a supplier for goods and services

informing of successful and unsuccessful suppliers

Context of and specific resources for assessment

Assessment must ensure

access to an actual workplace or simulated environment

access to office equipment and resources

organisations purchasing strategies and relevant purchasing records

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge The following examples are appropriate for this unit

analysis of responses to case studies and scenarios

assessment of draft and finalised contracts for the supply of goods and services

direct questioning combined with review of portfolios of evidence and third party workplace reports of onthejob performance by the candidate

observation of contacting successful and unsuccessful suppliers about the awarding of the contract

oral or written questioning to assess knowledge

review testimony from team members colleagues supervisors or managers

review of authenticated documents from the workplace or training environment

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector workplace and job role is recommended for example

other purchasing units


Range Statement

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.

Issues may include:

issues relating to non-compliance with invitation to offer requirements

issues relating to occupational health and safety (OHS) performance standards

issues relating to the form and specific requirements of contract documentation

Contracts may include:

agreements for one-off or ongoing supply of goods or services

agreements with Australian or overseas individuals, contractors, corporations, individuals and government agencies

electronic or paper-based agreements

memoranda of understanding/agreement

Relevant personnel may include:

CEO

managers

leaders

coordinators

OHS specialists

supervisors

other persons authorised to commit the organisation to purchases

internal users of purchased goods and services

owner

Board

specialist personnel involved in purchasing, asset maintenance and finance

Checks may include:

referring the contract to others such as:

external legal representative for organisation

legal officer within organisation

purchasing manager