PSPPCM007
Manage contracts


Application

This unit describes the skills required to manage contracts. It includes undertaking preparations, establishing and maintaining contract management arrangements, monitoring and maintaining contract performance, and completing and reviewing contracts.

This unit applies to those working as public sector employees with responsibilities relating to contract management.

The skills and knowledge described in this unit must be applied within the legislative, regulatory and policy environment in which they are carried out. Organisational policies and procedures must be consulted and adhered to.

Those undertaking this unit would work autonomously with management responsibilities while performing complex tasks in familiar contexts.

No licensing, legislative or certification requirements apply to unit at the time of publication.


Elements and Performance Criteria

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the range of conditions section.

1. Prepare to manage a contract

1.1 Confirm and clarify contract requirements, approvals and funding arrangements and identify obligations and limits of authority.

1.2 Clarify and assist with contract administration issues by contacting specialists and stakeholders and confirm operational elements of the contract.

1.3 Identify and clarify key contract clauses.

1.4 Identify and confirm process, timings, and key performance indicators with stakeholders.

1.5 Develop or review the risk management plan.

1.6 Develop or obtain contract management strategy and enter key details from the contract.

1.7 Form contract management team and allocate roles and responsibilities.

2. Implement a contract management strategy

2.1 Confirm and implement start-up or transition arrangements.

2.2 Establish information and contractor and stakeholder communication strategies.

2.3 Monitor and update risk management plan.

2.4 Manage relationship with contractors and stakeholders.

2.5 Obtain specialist expertise as necessary for progress meetings and for advice on or resolution of contract issues.

2.6 Maintain contract information and documentation.

3. Monitor and maintain performance of a contract

3.1 Ensure obligations to contractor and stakeholders are met.

3.2 Use monitoring and control measures and performance indicators to manage performance of contract and ensure that all obligations under the agreement are being met.

3.3 Manage contract variations.

3.4 Investigate and resolve or refer disputes and complaints.

3.5 Manage negotiation of contract issues.

3.6 Maintain communication with all stakeholders on the performance of the contract.

4. Complete and review contract

4.1 Confirm client satisfaction with contract deliverables.

4.2 Finalise, amend, cancel or terminate contracts.

4.3 Manage close-out, and renewal of contract or transition to a new contract.

4.4 Review contract management, contractor performance, user satisfaction and audit results.

4.5 Document and explain variances to measures or outcomes that are not met in full.

4.6 Report on contractor performance and review contract management practice and make recommendations for improvement.

Evidence of Performance

Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the candidate must demonstrate evidence of performance of the following on at least one occasion.

consulting and negotiating with contractors and stakeholders, involving complex oral and written exchanges of information

networking, within probity boundaries, with diverse stakeholders and contractors

interpreting complex documents, including contracts, legislation and guidelines

applying simple supply chain and supplier issues management techniques


Evidence of Knowledge

Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the depth of knowledge demonstrated must be appropriate to the job context of the candidate.

commonwealth, state or territory, and local government legislation, policies, practices and guidelines relating to contract management, including environmental purchasing and corporate social responsibility guidance

contract performance management

privacy and confidentiality issues

probity principles and issues

financial and accounting issues relevant to the contract


Assessment Conditions

This unit contains no specific industry-mandated assessment conditions. Guidance on suggested and recommended conditions and methods can be found in the Implementation Guide.

Assessors must satisfy the NVR/AQTF mandatory competency requirements for assessors.


Foundation Skills

Foundation skills are embedded within the elements and performance criteria of this unit.


Competency Field

Procurement