Application
This unit of competency describes the skills and knowledge required to negotiate and monitor contracts.
All work must be carried out to comply with organisational requirements, work health and safety legislation and codes and in consultation with the management team.
This unit applies to individuals who take personal responsibility and exercise autonomy in undertaking complex work. They must analyse information and exercise judgement to complete a range of advanced skilled activities.
No occupational licensing, legislative or certification requirements are known to apply to this unit at the time of publication.
Elements and Performance Criteria
Element | Performance criteria |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Define agreements with external parties to the business for service provision | 1.1 Identify and define the enterprise requirements of a business relationship with external sources 1.2 Establish the ranges of acceptable outcomes from a negotiation 1.3 Make contact with individuals, bodies or corporations and discuss requirements of an agreement 1.4 Clarify communication channels between all parties 1.5 Exchange references where applicable 1.6 Maintain sound practice and procedure for business meetings and document discussions and agreements |
2. Complete the formal agreement | 2.1 Ensure negotiations conform to established enterprise requirements and relevant legislation 2.2 Document requirements of the contract 2.3 Clarify and resolve areas of ambiguity or concern 2.4 Ensure conditions for service or supply are agreed between the parties including the key performance indicators 2.5 Undertake alternative processes where agreement is unable to be reached 2.6 Confirm the agreement based on mutually acceptable terms 2.7 Ensure penalties or redress for non-performance 2.8 Sign and exchange contract documentation between the relevant parties |
3. Monitor the performance of contracts | 3.1 Identify the rights and obligations of parties to a contract and implement appropriate methods of addressing non-performance 3.2 Identify and consult professional and regulatory bodies available to support commercial grievance processes 3.3 Monitor completion of contract against key performance indicators 3.4 Advise parties of issues in respect to non-compliance in writing |
Evidence of Performance
The candidate must be assessed on their ability to integrate and apply the performance requirements of this unit in a workplace setting. Performance must be demonstrated consistently over time and in a suitable range of contexts.
The candidate must provide evidence that they can:
establish agreements with sources external to the enterprise
complete contract documentation
monitor the performance of contracts
negotiate to obtain a fair outcome.
Evidence of Knowledge
The candidate must demonstrate knowledge of:
contract and commercial law applicable to the type of agreement
processes of formulation and negotiation of contracts
enterprise business policies and plans including procedures for maintenance of confidentiality.
Assessment Conditions
Competency is to be assessed in the workplace or simulated environment that accurately reflects performance in a real workplace setting.
Assessors must satisfy current standards for RTOs.
Foundation Skills
Foundation Skills essential to performance are explicit in the performance criteria of this unit of competency.
Range Statement
Sectors
Business (BUS)