Application
This unit describes the skills required to establish arrangements for contract management. It includes confirming contract requirements, preparing a contract management plan, developing stakeholder relationships and implementing contract strategies and contractual arrangements.
This unit applies to those working in roles involving procurement 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 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. Confirm contract requirements | 1.1 Identify legislation, public sector standards and organisational requirements relating to probity, financial management, approvals and other considerations for inclusion in the contract management plan. 1.2 Re-confirm contract requirements with all parties. 1.3 Determine obligations to the contractor, limits of authority and delegations according to contractual arrangements. 1.4 Confirm start-up or transition arrangements. |
2. Prepare contract management plan | 2.1 Identify contract risks and develop a risk management plan. 2.2 Determine procedures to identify, receive and address contract variations. 2.3 Determine procedures to investigate, resolve or refer disputes or complaints. 2.4 Develop and negotiate key performance indicators and identify and approve administrative processes for the life of the contract. 2.5 Document, obtain approval on and maintain a contract management plan that addresses key elements. 2.6 Apply expected standards of behaviour, probity and privacy principles to all elements of contract management plan. 2.7 Apply environmental, sustainability and corporate social responsibility principles to all elements of contract management plan. |
3. Develop stakeholder relationships | 3.1 Identify stakeholder networks and relationships. 3.2 Use networking strategies to establish, develop and maintain working relationships to promote benefits to the contract requirements. 3.3 Develop and maintain confidence of stakeholders through high standards of behaviour and ethical conduct. 3.4 Use negotiation strategies to achieve positive outcomes when difficult situations arise. 3.5 Identify and confirm communication requirements in line with contractual obligations and stakeholder needs. |
4. Implement contract strategies | 4.1 Identify requirements of confidentiality and freedom of information for the contract. 4.2 Develop communication and/or information strategy that matches needs of the organisation, the contract and the contractor’s business environment. 4.3 Establish contract review requirements with stakeholders. 4.4 Develop contract review strategy to review management of the contract, contractor performance and user satisfaction. |
5. Implement contractual arrangements | 5.1 Establish and manage business relationship with contractor. 5.2 Implement start-up or transition arrangements. 5.3 Establish financial, administrative and information management processes. 5.4 Implement contractual arrangements according to contract management plan. 5.5 Maintain appropriate records for the life of the contract. |
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, consulting and negotiating with contractors and stakeholders
developing a written contract management plan and sub-plans
reading and applying complex documents, including contracts, legislation and guidelines
provide feedback
modelling effective team management approaches
referring issues to the correct person
applying understanding of supplier issues and supply chain management in the context of procurement risk management
planning and organising skills to manage and update the contract management plan and sub-plans
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, sustainability and corporate social responsibility guidance relevant to the contract
organisational procurement policies, practices and approval processes
contract management planning 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
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