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Elements and Performance Criteria

  1. Manage the business relationship.
  2. Manage performance of the contract.
  3. Manage contract issues.
  4. Implement communication and information strategy.

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 contractors and stakeholders

read complex documents such as contracts legislation and guidelines

write management reports and keep records of meetings liaison notes and followup actions

provide feedback

teamwork skills to

build effective working relationships with contractors and stakeholders within probity boundaries

model effective team management approaches

respond to diversity

refer issues to the correct person

problemsolving skills to

resolve disputes conflict and complaints

make judgements about when to refer disputes conflict and complaints to others

apply understanding of supplier issuessupply chain management in the context 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

plan and organise contract meetings reports and reviews

learning skills to keep uptodate with

best practice examples in procurement practice

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 management for a range of contractual situations

privacy and confidentiality issues

probity principles and issues

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

wholeoflife considerations

financial and accounting issues relevant to the contract

legal aspects of negotiation

aspects of law of contracts trade practices law and commercial law relevant to the management of contracts relating to complex procurement

equal employment opportunity relevant to the management of contracts

OHS requirements relevant to the management of contracts

environmental sustainability and corporate social responsibility principles relevant to the management of contracts

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 managing contract performance 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 and implement an appropriate contract management plan using templates where available

develop and implement an appropriate transition plan using templates where available

develop and maintain a sound business relationship with contractors within probity guidelines upholding probity standards in all dealings with them

manage contractor performance so that goods and services are delivered according to the contract

provide the contractor with performance feedback

deal promptly and proactively with contract issues and disputes and refer to higher authority when this is not possible

communicate effectively with internal and external stakeholders about the operation of the contract

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 contract performance

case studies that incorporate dilemmas and probity requirements relating to managing contract performance

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 contract performance

review of contract management plans contracts contract variations contractor performance reports communication strategy 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

PSPETHCB Promote the values and ethos of public service

PSPETHC501B Promote the values and ethos of public service

PSPGOVA Undertake negotiations

PSPGOV507A Undertake negotiations

PSPLEGNB Promote compliance with legislation in the public sector

PSPLEGN501B Promote compliance with legislation in the public sector

PSPPROCB Finalise contracts

PSPPROC504B Finalise contracts

PSPPROCA Manage procurement risk

PSPPROC505A Manage procurement risk

PSPPROCA Plan to manage a contract

PSPPROC506A Plan to manage a contract

PSPPROCA Plan for procurement outcomes

PSPPROC507A Plan for procurement outcomes

PSPPROCA Make procurement decisions

PSPPROC508A Make procurement decisions.


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.

Probity principles:

may include:

accountability

transparency

confidentiality

managing conflict of interest

impartiality

are maintained to:

ensure conformity to processes

facilitate accountability

ensure proponents are treated in a fair and equitable manner

encourage commercial completion

preserve public and private sector confidence in government processes.

Legislation, policy and public sector standards may include:

financial management legislation

government procurement, purchasing and contracting legislation, policy and guidelines

council rules and by-laws

public sector standards

codes of conduct, codes of practice and standards of individual behaviour

cross-cultural and social justice issues

environmental and sustainability policies

corporate social responsibility policies.

Formal and informal mechanisms may include:

non-confrontational interaction

hospitality

formal contract variations

formal negotiations

formal and informal meetings

regular and ad hoc reporting

review processes.

Contract management plan may include:

risk management plan

contingency plan

communication and public relations plan

human resource management plan

disposal plan

contract review plan

setting up routines

quality assurance systems

arrangements for transfer of legal responsibility

insurances

strategies to avoid implied acceptance of varied conditions through non-enforcement of contractual obligations

environmental/green procurement, sustainability and corporate social responsibility principles.

Contracts may include:

formal written contracts

standing offers (panels)

multi-use lists and similar arrangements

inter and intra-government agreements

letters of intent

memoranda of understanding and memoranda of agreement

licensing agreements

in-house option directives.

Risks may include:

supplier inability to meet obligations

end user or buyer inability to meet obligations

scope creep

client requirements not fully understood

becoming too dependent on a single supplier

disruption to continuity and consistency of service if too many suppliers are selected

other environmental influences

corruption risks

probity risks.

Variation to agreements may arise from:

change of scope

negotiation of new terms and conditions

dissolution of contracts

inability to deliver.

Early signs of under-performance may be detected through:

tracking milestones

regular meetings

meeting records and follow-up

file management and audit trail

stakeholder surveys on performance

ongoing review of deliverables.

Actions taken to improve performance may include:

discussion with contractor

regular interaction

ongoing performance feedback

provision of support

expert advice.

Disputes may include:

disputes over:

requirements

delivery schedules

price changes

additional tasking

payment schedules

complaints from third parties

formal and informal.

Techniques available to resolve disputes include:

conference

negotiation

mediation

arbitration

resort to contractual conditions

litigation.

Negotiation of issues may include:

contract variations

continuous improvement

innovations

non-compliance

consequences.

Actions as a result of unresolved conflict may include:

mediation

court action

termination of contract.

Communication strategies may include:

clear communication

understanding the needs of the service provider and the client

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.

Contract information may include:

contract and variations

contract management plan

financial records, including funding submissions, budgets, delegations, invoices and payments

contractor performance information

contract reports

information about disputes and other issues

complaints and compliments.

Organisational purposes may include:

probity and accountability

budget reporting

feeding into future procurement processes

performance management of suppliers

internal and external reviews and audits

governance requirements

legal compliance.