The unit applies to contracts which may include local or overseas supply or production of materials, components, complete products or accessories used to produce finished design products. It may also be applied to contracts providing distribution and transportation or sales and marketing services.

The application of this unit includes the establishment of performance standards and monitoring procedures to ensure contract specifications are achieved.

Work may be conducted in small to large scale enterprises and may involve individual and team activities.

The application of this unit is according to OHS practices of the enterprise and workplace practices, which may include:

requirements prescribed by legislation, awards, agreements and conditions of employment

standard operating procedures

work instructions

oral, written and visual communication

quality practices, including responsibility for maintenance of own work quality and contribution to quality improvement of team or section output

housekeeping

tasks related to environmental protection, waste disposal, pollution control and recycling

This unit requires the application of skills associated with communication to collaborate with personnel, analyse information, prepare contracts, negotiate contractual arrangements and present, report and document contractual information. Initiative and enterprise, problem solving and planning and organising are required to establish contract parameters, select suppliers, develop risk management plans, monitor performance, identify issues and required improvements and ensure quality and performance standards are maintained.

Prerequisites

ELEMENT

PERFORMANCE CRITERIA

1 Establish contract requirements

1.1 Contract requirements are identified in collaboration with appropriate personnel in the workplace.

1.2 Key criteria are established to define contract parameters.

1.3 Previous contracts are reviewed to guide preparation of contract and selection of contractors.

1.4 Contract is prepared and advertised.

2 Confirm contract agreement

2.1 Applications for contract provision are reviewed and shortlisted.

2.3 Contract supplier is selected according to ability to provide goods or services to required standards.

2.4 Contract agreement is negotiated and confirmed.

2.5 Quality and performance standards are confirmed.

2.6 Documentation, communication and performance monitoring processes are agreed upon with contract supplier.

2.7 Risk management plan is developed.

2.8 Procurement documentation is completed.

3 Implement and manage contract agreement

3.1 Performance is monitored to ensure standards and targets are being achieved.

3.2 Inconsistencies and missing of targets are identified and addressed to reestablish required performance levels.

3.3 Appropriate personnel are consulted to assist in monitoring performance of contract suppliers.

3.4 Improvement opportunities are identified and implemented as possible.

3.5 Documentation is updated throughout implementation of contract.

3.6 Supplier payments are managed according to contract agreement.

4 Evaluate contract implementation

4.1 Implementation of contract is evaluated and its effectiveness in meeting contract requirements and quality outcomes assessed.

4.2 Improvements to contracting procedures are identified and recorded for later use.

4.3 Feedback is provided to supplier.

5 Maintain records

5.1 Records are maintained and reports prepared.

This describes the essential skills and knowledge and their level

Demonstrates knowledge of:

principles of quality management; their application and delegation of responsibilities within a contract

documentation procedures for contracts

research techniques

workplace procurement practices and procedures

legal requirements for contracting

performance monitoring methods

strategic planning

financial and accounting issues

quality standards and practices

OHS practices, including hazard identification and control measures

workplace practices

recording and reporting practices

Demonstrates skills to:

establish contract criteria

negotiate and communicate

monitor performance

investigate and apply methods to eliminate causes of unsatisfactory performance

assess results

prepare reports

communicate within the workplace, including liaising with other departments and possibly overseas personnel

establish or interpret procedures, where required

determine report requirements and present information in appropriate formats

read, interpret and follow information on work specifications, standard operating procedures and work instructions, and other reference material

maintain accurate records

sequence operations

meet specifications

clarify and check task-related information

carry out work according to OHS practices

The Evidence Guide provides advice on assessment and must be read in conjunction with the Performance Criteria, Required Skills and Knowledge, the Range Statement and the Assessment Guidelines for the Training Package.

Critical aspects of evidence

Demonstrates skills and knowledge to:

ensure appropriate personnel are aware of contract implementation

monitor quality performance of suppliers and ensure compliance

negotiate contract requirements

determine quality requirements

implement performance monitoring strategies

evaluate and assess effectiveness of contract

maintain accurate records

Consistency in performance

Consistently applies skills and knowledge when:

organising work

completing tasks according to instructions

working systematically with attention to detail

identifying improvements and avoiding damage

using workplace practices

using OHS practices

recording and reporting accidents and incidents

assessing operational readiness of equipment

recognising and adapting to cultural differences in the workplace, including modes of behaviour and interactions

Resource implications

Access is required to real or appropriately simulated situations, including work areas, materials and equipment, and to information on workplace practices and OHS practices.

Context for assessment

Assessment may occur on the job or in an appropriately simulated environment.

Interdependent assessment

This unit may be assessed independently or in combination with other relevant units.

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. Add any essential operating conditions that may be present with training and assessment depending on the work situation, needs if the candidate, accessibility of the item, and local industry and regional contexts.

Legislative/regulatory requirements

All work must comply with relevant Federal and State or Territory legislative or regulatory requirements.

Contract requirements may include:

supply of goods or components

production of goods or components

sales and marketing services

transport and distribution services

Appropriate personnel may include:

business development staff

management

specialist personnel such as operations managers, marketing executives, procurement officers

production personnel

designers

quality assurance officers

Key criteria may include:

quantity specifications

quality specifications

stakeholder interests

timing

budget

transportation

other special requirements

OHS practices

OHS practices include hazard identification and control, risk assessment and implementation of risk reduction measures specific to the tasks described by this unit, and may relate to:

manual handling techniques

standard operating procedures

personal protective equipment

safe materials handling

taking of rest breaks

ergonomic arrangement of workplaces

following marked walkways

safe storage of equipment

housekeeping

reporting accidents and incidents

environmental practices

Sector

All

This unit contains employability skills.