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Elements and Performance Criteria

  1. Confirm contract requirements
  2. Prepare contract management plan
  3. Develop stakeholder relationships
  4. Implement contract strategies
  5. Implement contractual arrangements

Required Skills

Required skills

communication skills to

consult and negotiate with contractors and stakeholders

network within probity boundaries with contractors and stakeholders

develop a written contract management plan and subplans

read complex documents such as contracts legislation and guidelines

provide feedback

teamwork skills to

model effective team management approaches

respond to diversity

refer issues to the correct person

problemsolving skills to

apply OHS requirements in the context of contract management

apply understanding of supplier issues and supply chain management in the context of procurement risk 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 planning for contract management

planning and organising skills to manage and update the contract management plan and subplans

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 sustainability and corporate social responsibility guidance relevant to the contract

such as OHS and equity and diversity

organisational procurement policies practices and approval processes

contract management planning 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

equal employment opportunity relevant to the contract

OHS requirements 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 plan to manage a contract 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 contract management plan suited to more complex contracts using templates if available which may include subplans such as risk transition and probity

implement the contract management strategy and the contract management plan

develop and maintain a sound business relationship with internal and external stakeholders

manage the performance of contractors to ensure the effective delivery of value for money outcomes under the contract

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

review contract throughout to identify opportunities for continuous improvement

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

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 planning to manage a contract

case studies that incorporate dilemmas and probity requirements relating to planning to manage a contract

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 planning to manage a contract

review of contract management plans contracts probity plans budgets transition plans approvals and signoffs 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 Manage contract performance

PSPPROC503B Manage contract performance

PSPPROCB Finalise contracts

PSPPROC504B Finalise contracts

PSPPROCA Manage procurement risk

PSPPROC505A Manage procurement risk

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.

Legislation, public sector standards and organisational requirements may include:

financial management legislation

government procurement, purchasing and contracting legislation, policy and guidelines

ethics standards

codes of conduct and codes of practice

environmental purchasing

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

Other considerations may include:

corporate governance

intellectual property

privacy

freedom of information requirements

public liability insurance considerations

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

Contract requirements may include:

terms and conditions

specifications

risk

managing hospitality

clauses dealing with:

variations

insurances

notices

disputes

intellectual property

privacy

confidentiality

milestones

payments

breaches

Delegations may include:

financial delegations

procurement delegations

compliance with instructions or finance circulars

special consideration if they concern travel, computers or software, leasing arrangements or issuing indemnities, or other special categories of goods and services

other delegations, such as disposals and human resources

confirmation by chief financial officer

ministerial authorisation

Contract risks may include:

contextual/environmental factors

supplier inability to meet obligations

end user or buyer inability to meet obligations

unclear contract terms and conditions

contractual disputes

factors outside the control of either party, such as global health pandemic, failure of third-party businesses, and natural disasters

implications if dependence on one supplier, versus risks in lack of continuity and consistency of services provided

Variation to agreements may arise from:

change of scope

negotiation of new terms and conditions

dissolution of contracts

Procedures to resolve disputes may include:

conference

negotiation

mediation

arbitration

resort to contractual conditions

litigation

Disputes may include:

disputes over:

requirements

delivery schedules

price changes

additional tasking

payment schedules

complaints from third parties

Administrative processes may include:

file and records management

audit trail

methodology for recording meetings

notes and follow-ups of meetings and actions agreed

management reporting

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

Stakeholders may include:

contractor

buying organisation

board of management

steering committee

advisory panel

staff

union

industry

client

end user

parliamentarian

the public

Communication/ information strategies may include:

setting regular times to talk, meet or check on progress

protocols for dealing with other stakeholders

appeals mechanisms for resolving conflict between clients and service providers

clear communication

reliability

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 review strategy may include:

planning process

evaluation considerations at each stage of the contract

sources and methods of gathering data

role of audit trails

measuring outputs

meeting client needs

innovation

strategies for continuous improvement

Contract records may include:

contract and variations

contract management plan

financial records, such as funding submissions, budgets, delegations, invoices and payments

contractor performance information

contract reports

information about disputes and other issues

complaints and compliments