TLIR5005
Manage a contract


Application

This unit involves the skills and knowledge required to manage a contract in various contexts within the transport and logistics industry.

It includes confirming contract requirements, establishing a contract management system, and monitoring and evaluating the contract.

The unit generally applies to those who lead individuals or teams.

No licensing, legislative or certification requirements apply to this 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.

1

Confirm contract requirements

1.1

Relevant parties are consulted to identify their contract requirements

1.2

Special provisions needed are identified

1.3

Need for specialist legal advice is identified and advice is obtained as required

1.4

Key performance outcomes and measures are specified for inclusion in contract

1.5

Relationship with contractor is established in accordance with organisational policies and procedures

2

Establish contract management system

2.1

Effective communication/information strategies are established

2.2

Dispute and complaint system is established in accordance with organisational policies and procedures

2.3

Consistent and accurate records of contract progress are maintained

2.4

Management strategy is documented, monitored for effectiveness and adapted as required during the life of the contract

3

Monitor contract

3.1

Regular inspections of contract services are undertaken to ensure compliance with specifications

3.2

Relationship with contractor is managed in accordance with organisational policies and procedures

3.3

Regular planned progress meetings are conducted and documented between all contract personnel to ensure problems are identified, resolved early and documented

3.4

Variations between specified scope of services and contract are identified and documented, and relevant personnel are notified without delay

3.5

Contract costs are monitored on a regular basis to ensure service is carried out within financial and contractual requirements

3.6

Payments for contract services are authorised in accordance with contract conditions and organisational contract administrative system

4

Evaluate contract

4.1

Evaluation of contract performance is undertaken relative to planned performance measures and in consultation with stakeholders and suppliers

4.2

Conclusions are detailed against agreed criteria and a complete picture of supplier performance, organisational procurement processes and value for money is provided

4.3

Evaluation is documented in accordance with organisational requirements to assist improvement in future procurement activities

4.4

Relevant parties are advised of evaluation outcomes in a timely manner in accordance with organisational guidelines

Evidence of Performance

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria on at least one occasion and include:

applying relevant legislation and workplace procedures

communicating and communicating effectively with others when managing a contract

completing documentation related to contract management, including reports relevant to deliverables of stages and completion

modifying activities depending on operational contingencies, risk situations and environments, and negotiating modifications with the contractor or agent as required

monitoring and prioritising work activities in terms of planned schedule

negotiating solutions to problems as they arise during the contract timeframe

operating electronic communications equipment to required protocol

reading and interpreting instructions, procedures, information and the contract itself.


Evidence of Knowledge

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria and include knowledge of:

confidentiality issues in relation to contracted services such as intellectual property

disposals considerations

equal employment opportunity and anti-discrimination law

ethical issues

financial and accounting issues relevant to the contract

financial management of a contract including negotiating price variations during the contract

organisational purchasing policies and practices

performance management in terms of identifying and managing contract compliance

procedures for acceptance of goods or services

procedures for operating electronic communications equipment

procurement approval processes

procurement negotiation practices, including legal aspects

relevant sections of national and state/territory regulatory requirements and codes of practice related to procurement, including contract law, trade practices law and commercial law to a level sufficient to be able to manage the performance of a contractor

requirements for completing relevant documentation.


Assessment Conditions

As a minimum, assessors must satisfy applicable regulatory requirements, which include requirements in the Standards for Registered Training Organisations, current at the time of assessment.

As a minimum, assessment must satisfy applicable regulatory requirements, which include requirements in the Standards for Registered Training Organisations, current at the time of assessment.

Assessment must occur in workplace operational situations where it is appropriate to do so; where this is not appropriate, assessment must occur in simulated workplace operational situations that replicate workplace conditions.

Assessment processes and techniques must be appropriate to the language, literacy and numeracy requirements of the work being performed and the needs of the candidate.

Resources for assessment include:

a range of relevant exercises, case studies and/or other simulations

relevant and appropriate materials, tools, equipment and personal protective equipment currently used in industry

applicable documentation including workplace procedures, regulations, codes of practice and operation manuals.


Foundation Skills

Foundation skills essential to performance are explicit in the performance criteria of this unit of competency.


Range Statement

Range is restricted to essential operating conditions and any other variables essential to the work environment.

Non-essential conditions can be found in the Companion Volume Implementation Guide.


Sectors

Not applicable.


Competency Field

R ‒ Contract Procurement