Elements and Performance Criteria

Element

Performance Criteria

1

Confirm contract requirements

1.1

Legislation, public sector standards and organisational requirements relating to probity, financial management, approvals and other considerations are identified for inclusion in the contract management plan

1.2

Contract requirements are re-confirmed with all parties

1.3

Obligations to the contractor, limits of authority and delegations relating to the contract are determined in accordance with contractual arrangements and organisational policy and procedures

1.4

Start-up or transition arrangements are confirmed

2

Prepare contract management plan

2.1

Contract risks are identified and a risk management plan is developed in line with contract requirements and organisational policy and procedures

2.2

Procedures to identify, receive and address contract variations are determined in accordance with the contractual requirements and organisational procedures

2.3

Procedures to investigate, resolve or refer disputes/complaints are determined in accordance with contractual requirements and organisational procedures

2.4

Key performance indicators are developed/negotiated and administrative processes are identified and approved for the life of the contract in accordance with organisational procedures

2.5

Contract management plan that addresses all key elements is documented, approved and maintained in accordance with organisational requirements

2.6

Ethical behaviour, probity and privacy principles are applied to all elements of the contract management plan

3

Implement contract strategies

3.1

The requirements of confidentiality/freedom of information are identified for the contract

3.2

Communication requirements are identified/confirmed in line with contractual obligations and the needs of stakeholders

3.3

A communication/information strategy is developed that matches the needs of the organisation, the contract and the contractor's business environment

3.4

Contract review requirements are established with stakeholders

3.5

A contract review strategy is developed to review management of the contract, contractor performance and user satisfaction

4

Implement contractual arrangements

4.1

Business relationship with contractor is established and managed in accordance with organisational policy and procedures

4.2

Start-up or transition arrangements are implemented

4.3

Financial, administrative and information management processes are established

4.4

Contractual arrangements are implemented in accordance with the contract management plan

REQUIRED SKILLS AND KNOWLEDGE

This section describes the essential skills and knowledge and their level, required for this unit.

Skill requirements

Look for evidence that confirms skills in:

communication and negotiation with contractors and other stakeholders involving complex oral and written exchanges

networking with diverse clients, contractors and end users

responding to diversity, including gender and disability

reading and applying complex documents such as contracts, legislation and guidelines

applying occupational health and safety and environmental requirements in the context of contract management

Knowledge requirements

Look for evidence that confirms knowledge and understanding of:

Commonwealth/State/Territory Government legislation, policies, practices and guidelines relating to contract management, including environmental purchasing guidance

contract management planning for a range of contractual situations

privacy and confidentiality issues

probity principles and issues

whole-of-life considerations

equal employment opportunity, equity and diversity principles

financial and accounting issues relevant to the contract

public sector legislation including occupational health and safety and environmental

The Evidence Guide specifies the evidence required to demonstrate achievement in the unit of competency as a whole. It must be read in conjunction with the Unit descriptor, Performance Criteria, the Range Statement and the Assessment Guidelines for the Public Sector Training Package.

Units to be assessed together

Pre-requisite units that must be achieved prior to this unit: Nil

Co-requisite units that must be assessed with this unit: Nil

Co-assessed units that may be assessed with this unit to increase the efficiency and realism of the assessment process include, but are not limited to:

PSPETHC501B Promote the values and ethos of public service

PSPGOV505A Promote diversity

PSPGOV507A Undertake negotiations

PSPGOV508A Manage conflict

PSPGOV511A Provide leadership

PSPGOV512A Use complex workplace communication strategies

PSPLEGN501B Promote compliance with legislation in the public sector

PSPPROC501A Manage contract risk

PSPPROC503A Manage contract performance

PSPPROC504A Finalise contracts

Overview of evidence requirements

In addition to integrated demonstration of the elements and their related performance criteria, look for evidence that confirms:

the knowledge requirements of this unit

the skill requirements of this unit

application of the Employability Skills as they relate to this unit (see Employability Summaries in Qualifications Framework)

contract management arrangements established in a range of (3 or more) contexts (or occasions, over time)

Resources required to carry out assessment

These resources include:

legislation, policy, procedures and protocols relating to contract management

case studies and workplace scenarios to capture the range of contract management situations likely to be encountered

Where and how to assess evidence

Valid assessment of this unit requires:

a workplace environment or one that closely resembles normal work practice and replicates the range of conditions likely to be encountered when establishing contract management arrangements, including coping with difficulties, irregularities and breakdowns in routine

contract management arrangements established in a range of (3 or more) contexts (or occasions, over time)

Assessment methods should reflect workplace demands, such as literacy, and the needs of particular groups, such as:

people with disabilities

people from culturally and linguistically diverse backgrounds

Aboriginal and Torres Strait Islander people

women

young people

older people

people in rural and remote locations

Assessment methods suitable for valid and reliable assessment of this competency may include, but are not limited to, a combination of 2 or more of:

case studies

demonstration

portfolios

projects

questioning

scenarios

authenticated evidence from the workplace and/or training courses

For consistency of assessment

Evidence must be gathered over time in a range of contexts to ensure the person can achieve the unit outcome and apply the competency in different situations or environments

The Range Statement provides information about the context in which the unit of competency is carried out. The variables cater for differences between States and Territories and the Commonwealth, and between organisations and workplaces. They allow for different work requirements, work practices and knowledge. The Range Statement also provides a focus for assessment. It relates to the unit as a whole. Text in italics in the Performance Criteria is explained here.

Legislation, standards and organisational requirements may include

financial management legislation

government procurement/purchasing/contracting legislation, policy and guidelines

public sector standards

ethics standards

codes of conduct/ethics

environmental purchasing

Probity principles are

accountability

transparency

confidentiality

management of conflicts of interest

maintained to:

ensure conformity to processes

facilitate accountability

ensure proponents are treated in a fair and equitable manner

encourage commercial competition, where appropriate

preserve public and private sector confidence in government processes

Other considerations may include

corporate governance

intellectual property

privacy

freedom of information requirements

public liability insurance considerations

Contracts may include

memoranda of understanding/memoranda of agreement

in-house option directives

common use arrangements/standing offers

inter/intra-government agreements

letters of intent

licensing

purchases from suppliers

Contract requirements may include

terms and conditions

specifications

risk

managing hospitality

clauses dealing with:

variations

insurance/s

notices

disputes

intellectual property

privacy

confidentiality

milestones

payments

breaches

Delegations may include

compliance with instructions or finance circulars

special consideration if they concern:

long-term travel deals

long-term computer deals

long-term lease deals

issuing of indemnities

other delegates

confirmation by chief financial officer

Ministerial authorisation

Risks might include

environmental factors

suppliers' inability to meet agreements

end users' or buyers' inability to meet obligations

limited number of suppliers

implications if dependence on one suppler is enshrined versus risks in lack of continuity and consistency of services provided

Variation to agreements may include/arise from

change of scope

negotiation of new terms and conditions

dissolution of contracts

Procedures to resolve disputes may include

conference

negotiation

mediation

arbitration

resort to contractual agreements

legal considerations

Disputes may include

disputes over:

requirements

delivery schedules

price changes

additional tasking

payment schedules

complaints from third parties

Administrative processes may include

file/records management

audit trail

recording meetings

notes and follow-ups of meetings and actions agreed

management reporting

Contract management plan may include

risk management plan

contingency plan

communication/public relations plans

human resource management plan

disposal plan

contract review plan

setting up routines

checking quality assurance systems

transfer of legal responsibility

insurances

strategies to avoid implied acceptance of varied conditions through non-enforcement of contractual obligations

environmental/green issues

industry policy

Stakeholders may include

contractor

organisation

board of management

steering committee

industry

advisory panel

clients

users

Parliamentarians

the public

Communication/ information strategies may include

setting regular times to talk, meet or check on progress

protocols for dealing with other stakeholders

appeals mechanisms for resolving conflict between clients and service providers

clear communication

reliability

emergency contact arrangements

a diary system to monitor milestones, timeframes, receipt of deliverables etc

strategies for ensuring information flow at critical stages of the contract

Contract review strategymay include

planning process

evaluation considerations at each stage of the contract

sources and methods of gathering data

role of audit trails

measuring outputs

meeting client needs

innovation

strategies for continuous improvement