Google Links

Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

  1. Prepare to manage a contract
  2. Implement a contract management strategy
  3. Monitor and maintain performance of a contract
  4. Complete and review contract.

Required Skills

Required skills

communication skills to

consult and negotiate with contractors and stakeholders involving complex oral and written exchanges of information

network within probity boundaries with diverse stakeholders and contractors

read complex documents such as contracts legislation and guidelines

provide feedback

teamwork skills to

work independently or under direction as appropriate to the situation

model team leadership approaches if appropriate

respond to diversity

refer issues to the correct person

problemsolving skills to apply simple supply chain management and supplier issues management to the process of contract management

initiative and enterprise skills to

apply the content of complex documents such as contracts legislation and guidelines

apply OHS environmental sustainability and corporate social responsibility practices in the context of contract management

planning and organising skills to manage contract documentation

learning skills to keep uptodate with relevant procurement legislation policies and procedures

technology skills to

operate organisational IT systems

use electronic procurement templates

Required knowledge

commonwealth state or territory and local government legislation policies practices and guidelines

relating to contract management including environmental purchasing and corporate social responsibility guidance

such as OHS and equity and diversity

organisational procurement policies practices and approval processes

contract performance management

privacy and confidentiality issues

probity principles and issues

codes of conduct codes of practice and standards of individual behaviour relating to managing contracts and relationships with contractors

wholeoflife considerations relating to the ownership operation and disposalcompletion of the goods or services

equal employment opportunity

financial and accounting issues relevant to the contract

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

Competency must be demonstrated in the ability to manage contracts consistently in accordance with legislative and organisational requirements

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

Assessment must confirm the ability to

develop a contract management strategy in consultation with key stakeholders

develop a suitable contract management plan using templates if available

implement the contract management plan

manage the performance of contractors

provide contractors with performance feedback

manage contract disputes to achieve prompt resolution and refer to higher authority when necessary

review contracts throughout to identify opportunities for continuous improvement

act within own delegations and refer issues to higher authority when necessary

uphold probity standards in all dealings with contractors

Consistency in performance

Competency should be demonstrated by providing evidence of undertaking a range of relevant work tasks in an actual or simulated procurement environment on at least two separate occasions

Context of and specific resources for assessment

The unit of competency is to be assessed in the workplace or a simulated workplace environment

Access may be required to

legislation policy procedures and protocols relating to procuring goods and services and managing contracts

codes of conduct and codes of practice

workplace scenarios and case studies relating to a range of procurement activities associated with managing contracts

case studies that incorporate dilemmas and probity requirements relating to managing contracts

Method of assessment

The following assessment methods are suggested

questions to assess understanding of relevant legislation and procedures

review of strategies and approaches adopted for managing contracts

review of contract management plans contracts contract variations contractor performance reports contract closure documents and other documentation prepared by the candidate in a range of contexts

review of stakeholder engagement approaches adopted by the candidate

In all cases practical assessment should be supported by questions to assess underpinning knowledge and those aspects of competency which are difficult to assess directly Questioning techniques should suit the language and literacy levels of the candidate

Guidance information for assessment

Evidence must be gathered over time in a range of contexts to ensure the person can achieve the unit outcome and apply the competency in different situations or environments

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

PSPETHCA Uphold and support the values and principles of public service

PSPETHC401A Uphold and support the values and principles of public service

PSPGOVA Identify and treat risks

PSPGOV417A Identify and treat risks

PSPGOVA Exercise delegations

PSPGOV421A Exercise delegations

PSPLEGNA Encourage compliance with legislation in the public sector

PSPLEGN401A Encourage compliance with legislation in the public sector

PSPPROCA Plan procurement

PSPPROC411A Plan procurement

PSPPROCA Develop and distribute requests for offers

PSPPROC412A Develop and distribute requests for offers

PSPPROCA Select providers and develop contracts

PSPPROC413A Select providers and develop contracts.


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.

Contracts may include:

memoranda of understanding and memoranda of agreement

in-house option directives

common use arrangements/standing offers

inter and intra-government agreements

letters of intent

licensing agreements

Specialists may include:

procurement and contracting

corporate finance

outsourced procurement or contracting advisers

legal advisers

functional/business

technical

business owner of the contract

OHS

environmental

audit and probity

appropriate cross-government department experts

Stakeholders may include:

end users, customers or clients, and sponsors

current or potential providers or suppliers

technical or functional experts or advisers

commonwealth, state or territory, and local government

the organisation

other public sector organisations

employees, unions and staff associations

industry bodies

local communities

lobby groups and special user groups

Key contract clauses may include:

specifications

variations

insurances

notices

disputes

intellectual property

privacy

confidentiality

milestones

payments

breaches

penalties

expected standards of behaviour

Risks may include:

contractor inability to meet agreements

end user or buyer inability to meet obligations

limited number of suppliers

corruption risks

probity risks

Contract management strategy may include:

formal contract management plan

contract management checklist

setting up routines

checking quality assurance systems

transferring legal responsibility

avoiding implied acceptance of varied conditions through non-enforcement of contractual obligations

applying environmental, sustainability and corporate responsibility principles

Contract management strategy may be obtained from:

procurement/contracting area

specialist contract managers

central agencies, such as state supply boards, and contract and management services

finance area

legal advisers

outsourced providers of contracting services

Communication strategies may include:

setting regular times to talk, meet or check on progress

protocols for dealing with other stakeholders

emergency contact arrangements

diary system to monitor milestones, timeframes, receipt of deliverables, etc.

strategies for ensuring information flow at critical stages of the contract

Monitoring and control measures may include:

inspections

tests

audits

reviews

meetings

progress reports

verifications

identification of non-conformances

corrective actions

Contract variations may include:

change of scope

change in prices

change in quantity

change to specifications

negotiation of new terms and conditions

dissolution of contracts

in writing

verbal variations, confirmed in writing

variations by action/inaction

Disputes may include:

disputes over:

requirements

delivery schedules

price changes

additional tasking

payment schedules

complaints from third parties

Techniques available to resolve disputes include:

conference

negotiation

mediation

expert determination

arbitration

resort to contractual conditions

legal considerations

Negotiation of issues may include:

contract variations

continuous improvement

innovations

non-compliance

consequences

Review may include:

planning process

evaluation considerations at each stage of the contract

sources and methods of gathering data

role of audit trails, where applicable

measuring outputs

meeting client needs

considering new and different ways of delivering the service or product in the future

strategies for continuous improvement