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Elements and Performance Criteria

  1. Identify and analyse the essential elements, sections and clauses of a business contract.
  2. Select an appropriate contract for the works to be undertaken.
  3. Prepare the contract.

Required Skills

Required skills

Required skills for this unit are

communication skills to

enable clear and direct communication using questioning to identify and confirm requirements share information listen and understand

facilitate effective communication by phone facsimile email or in writing with members of the organisation and external parties including clients and subcontractors

facilitate drafting detailed responses to queries relating to the finer points of contracts

read and interpret

complex legal text

construction schedules

contracts

reports

specifications

use language and concepts appropriate to cultural differences

use and interpret nonverbal communication

written skills to prepare a construction contract including completing memos schedules and evaluative reports and communicating complex ideas and alternatives

contractual arrangement problem solving

negotiation with construction clients

numeracy skills to apply calculations including rise and fall amounts applicable to changed contract circumstances

Required knowledge

Required knowledge for this unit is

definitions and interpretations commonly applied to contracts

legal meanings of terms and clauses in building and construction contracts

relationships between the organisation and its clients

various contract types and the circumstances they cover

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

This unit of competency could be assessed by the selection and development of appropriate contracts which meet organisational and industry standards and relate to low rise building structures

This unit of competency can be assessed in the workplace or a close simulation of the workplace environment provided that simulated or projectbased assessment techniques fully replicate construction workplace conditions materials activities responsibilities and procedures

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

It is essential that competence is demonstrated in the relevant aspects of contract selection and insertion of appropriate clauses including rise and fall and progress payments

A person who demonstrates competency in this unit must be able to provide evidence of the ability to

select the right contract for the particular project

select appropriate clauses and conditions within the contract

identify causes of a breach of contract

specify requirements for the offer and acceptance of a contract

specify requirements for the termination of a contract

accurately calculate rise and fall amounts

specify schedule for progress payments

specify requirements for extensions of time

include all related documentation

refer to all relevant legislation

Context of and specific resources for assessment

This competency is to be assessed using standard and authorised work practices safety requirements and environmental constraints

Assessment of essential underpinning knowledge will usually be conducted in an offsite context

Assessment is to comply with relevant regulatory or Australian standards requirements

Resource implications for assessment include

documentation that should normally be available in either a building or construction office

relevant codes standards and government regulations

office equipment including calculators photocopiers and telephone systems

computers with appropriate software to view D CAD drawings run costing programs and print copies

a technical reference library with current publications on measurement design building construction and manufacturers product literature

a suitable work area appropriate to the construction process

Reasonable adjustments for people with disabilities must be made to assessment processes where required This could include access to modified equipment and other physical resources and the provision of appropriate assessment support

Method of assessment

Assessment methods must

satisfy the endorsed Assessment Guidelines of the Construction Plumbing and Services Training Package

include direct observation of tasks in real or simulated work conditions with questioning to confirm the ability to consistently identify and correctly interpret the essential underpinning knowledge required for practical application

reinforce the integration of employability skills with workplace tasks and job roles

confirm that competency is verified and able to be transferred to other circumstances and environments

Validity and sufficiency of evidence requires that

competency will need to be demonstrated over a period of time reflecting the scope of the role and the practical requirements of the workplace

where the assessment is part of a structured learning experience the evidence collected must relate to a number of performances assessed at different points in time and separated by further learning and practice with a decision on competency only taken at the point when the assessor has complete confidence in the persons demonstrated ability and applied knowledge

all assessment that is part of a structured learning experience must include a combination of direct indirect and supplementary evidence

Assessment processes and techniques should as far as is practical take into account the language literacy and numeracy capacity of the candidate in relation to the competency being assessed

Supplementary evidence of competency may be obtained from relevant authenticated documentation from third parties such as existing supervisors team leaders or specialist training staff


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.

Building and construction contracts relevant to the sector and organisational needs may include:

Australian standard contracts (including the AS2124 and AS4000 series)

Construction Industry Contract (CIC) suite

contracts required or supplied by regulatory authorities or state or territory legislation

individual organisational contracts

Joint Contracts Committee (JCC) suite

Master Builders Association (MBA) and Housing Industry Association (HIA) or other standard industry contracts

Simple Building Works (SBW), including series 1 and series 2 (SBW2 Lump Sum).

Range of documents includes:

equipment, site accommodation and services information

human resource projections

materials lists

plans, drawings and specifications

project timelines

schedules.

Termination of a contract includes definitions and applications of:

abandonment of a contract

conditions for completion at the cost of the contractor

effect of ousting the contractor from the building or construction

relevant legislation and contract provisions

repudiation of a contract by one party and its agreed definition

unreasonable or vexatious notice.