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Evidence Guide: BSBPUR402B - Negotiate contracts

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

BSBPUR402B - Negotiate contracts

What evidence can you provide to prove your understanding of each of the following citeria?

Negotiate terms of contracts with suppliers

  1. Offer advice and undertake negotiations without prejudice
  2. Advise suppliers of the organisation's intent to accept their offers
  3. Negotiate issues with suppliers
  4. Determine desired outcomes, negotiation plans and schedules for negotiations
  5. Undertake negotiations and reach agreements with suppliers in accordance with plans
  6. Negotiate and document contract requirements to the satisfaction of the organisation and suppliers
Offer advice and undertake negotiations without prejudice

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Advise suppliers of the organisation's intent to accept their offers

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiate issues with suppliers

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine desired outcomes, negotiation plans and schedules for negotiations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Undertake negotiations and reach agreements with suppliers in accordance with plans

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiate and document contract requirements to the satisfaction of the organisation and suppliers

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Prepare contracts

  1. Draft required contracts using legal expertise if required
  2. Distribute draft contracts to relevant personnel and suppliers
  3. Ensure any discrepancies or disagreements are clarified and resolved to the satisfaction of all parties
  4. Ensure checks of the legality and validity of draft contracts are made
  5. Obtain approvals to sign contracts
Draft required contracts using legal expertise if required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Distribute draft contracts to relevant personnel and suppliers

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ensure any discrepancies or disagreements are clarified and resolved to the satisfaction of all parties

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ensure checks of the legality and validity of draft contracts are made

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Obtain approvals to sign contracts

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Finalise contracts

  1. Ensure contracts are signed and exchanged between the organisation and suppliers
  2. Ensure contracts and related documents are stored and safeguarded
  3. Advise relevant personnel of contract requirements
  4. Advise unsuccessful suppliers of non-acceptance of offers
Ensure contracts are signed and exchanged between the organisation and suppliers

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ensure contracts and related documents are stored and safeguarded

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Advise relevant personnel of contract requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Advise unsuccessful suppliers of non-acceptance of offers

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

documented agreement of terms with suppliers

drafting and completion of a contract with a supplier for goods and services

informing of successful and unsuccessful suppliers.

Context of and specific resources for assessment

Assessment must ensure:

access to an actual workplace or simulated environment

access to office equipment and resources

organisation's purchasing strategies and relevant purchasing records.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

analysis of responses to case studies and scenarios

assessment of draft and finalised contracts for the supply of goods and services

direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate

observation of contacting successful and unsuccessful suppliers about the awarding of the contract

oral or written questioning to assess knowledge

review testimony from team members, colleagues, supervisors or managers

review of authenticated documents from the workplace or training environment.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

other purchasing units.

Required Skills and Knowledge

Required skills

culturally appropriate communication skills to relate to people from diverse backgrounds and people with diverse abilities

communication and negotiation skills to liaise with suppliers and reach agreement with suppliers on contracts

literacy skills to draft concepts and write reports containing complex concepts

technology application skills to use a range of software programs relevant to purchasing and contracting.

Required knowledge

identification and overview knowledge of key provisions of relevant legislation from all levels of government that affects business operations, codes of practice and national standards, such as:

consumer protection legislation

contract law

import of goods and services, where relevant

sale of goods legislation

Trade Practices Act

organisational practices, policies and procedures for purchasing

product knowledge about the goods and services being supplied

purchasing and procurement principles for:

accountability

probity and transparency

risk management

value for money.

Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Issues may include:

issues relating to non-compliance with invitation to offer requirements

issues relating to occupational health and safety (OHS) performance standards

issues relating to the form and specific requirements of contract documentation

Contracts may include:

agreements for one-off or ongoing supply of goods or services

agreements with Australian or overseas individuals, contractors, corporations, individuals and government agencies

electronic or paper-based agreements

memoranda of understanding/agreement

Relevant personnel may include:

CEO

managers

leaders

coordinators

OHS specialists

supervisors

other persons authorised to commit the organisation to purchases

internal users of purchased goods and services

owner

Board

specialist personnel involved in purchasing, asset maintenance and finance

Checks may include:

referring the contract to others such as:

external legal representative for organisation

legal officer within organisation

purchasing manager