Application
This unit describes the skills required to implement strategies that ensure effective contract performance. It includes managing the business relationship, performance of the contract, and contract issues; and implementing a communication strategy.
This unit applies to those working in roles involved in procurement contract maintenance.
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 independently seeking advice as required, performing complex tasks in a range of familiar and unfamiliar 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. Manage the business relationship | 1.1 Manage probity. 1.2 Meet obligations to the contractor. 1.3 Record consideration of conflicts of interest and their resolution. 1.4 Manage business relationship with contractor in the public interest through formal and informal mechanisms. |
2. Manage performance of the contract | 2.1 Implement start-up or transition arrangements. 2.2 Monitor and update contract management plan for effectiveness regularly. 2.3 Monitor performance of contract against key performance indicators and track milestones to ensure obligations under the agreement are being met. 2.4 Manage e-procurement, financial and other resources. 2.5 Identify and manage emerging and potential risks. |
3. Manage contract issues | 3.1 Manage contract variations. 3.2 Identify early signs of under-performance, and take action to improve performance. 3.3 Investigate and resolve or refer disputes and complaints. 3.4 Conduct negotiation of contract issues. 3.5 Address and resolve or refer conflict. 3.6 Deal with non-compliance with codes of conduct, codes of practice and standards of behaviour. |
4. Implement communication and information strategy | 4.1 Maintain communication on the performance of the contract with all stakeholders. 4.2 Carry out management reporting. 4.3 Maintain contract information for organisational purposes. |
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.
networking with contractors and stakeholders
reading and applying complex documents, including contracts, legislation and guidelines
writing management reports and keeping records of meetings, liaison, notes and follow-up actions
building effective working relationships with contractors and stakeholders
modelling effective team management approaches
referring issues to the correct person
resolving disputes, conflict and complaints
making judgements about when to refer disputes, conflict and complaints to others
applying understanding of supplier issues/supply chain management in the context of contract management
managing contract documentation
planning and organising contract meetings, reports and reviews
maintaining currency of best practice examples in procurement practice and relevant procurement legislation, policies and procedures
use electronic procurement templates
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
organisational procurement policies, practices and approval processes
contract management for diverse contractual situations
privacy and confidentiality issues
codes of conduct, codes of practice and standards of individual behaviour relating to management of contracts and relationships with contractors
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
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