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Evidence Guide: LMFFT5015B - Establish and implement contracts for external goods or services

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

 

LMFFT5015B - Establish and implement contracts for external goods or services

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

Document goods/services to be contracted

  1. Specifications for the contract are drawn up identifying:
Specifications for the contract are drawn up identifying:

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

goods and/or services to be provided

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

criteria to be met

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

financial arrangements

  1. Contract details are checked for compliance with enterprise purchasing policy or procedures
  2. Contract is provided to potential suppliers in accordance with the enterprise practices
Contract details are checked for compliance with enterprise purchasing policy or procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Contract is provided to potential suppliers in accordance with the enterprise practices

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiate contract with supplier

  1. Requirements of the supply contract are discussed
  2. Contract specification requirements are understood by the relevant parties
  3. Areas of ambiguity or concern are clarified and resolved
  4. Negotiations are undertaken with selected supplier for the contracting of required goods or services on a "without prejudice" basis
  5. Conditions for supply of goods/services are agreed between the enterprise and the supplier, including the determination of key performance indicators
  6. Alternative suppliers are negotiated with if agreement is unable to be reached
  7. Contract price and conditions are negotiated and agreed
  8. Negotiations conform to established enterprise requirements and relevant legislation
Requirements of the supply contract are discussed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Contract specification requirements are understood by the relevant parties

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Areas of ambiguity or concern are clarified and resolved

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiations are undertaken with selected supplier for the contracting of required goods or services on a "without prejudice" basis

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Conditions for supply of goods/services are agreed between the enterprise and the supplier, including the determination of key performance indicators

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Alternative suppliers are negotiated with if agreement is unable to be reached

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Contract price and conditions are negotiated and agreed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiations conform to established enterprise requirements and relevant legislation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Complete contract negotiations

  1. Contract documentation is drafted in accordance with relevant legislation, enterprise procedures and negotiated conditions of service and supply
  2. Technical support in the drafting of contracts is accessed where required
  3. Contract provisions are confirmed internally as required by enterprise practices or purchasing policy
  4. Contract documentation is signed and exchanged between the relevant parties
Contract documentation is drafted in accordance with relevant legislation, enterprise procedures and negotiated conditions of service and supply

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Technical support in the drafting of contracts is accessed where required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Contract provisions are confirmed internally as required by enterprise practices or purchasing policy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Contract documentation is signed and exchanged between the relevant parties

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Complete enterprise contract requirements

  1. Supply of contracted goods or services is monitored and appropriate financial arrangements are approved
  2. Workplace approved systems are used to file information to ensure traceability of orders and financial transactions
  3. Organisational systems that require interaction with suppliers are identified and used where appropriate
  4. Quality assurance procedures for supplied goods/services are identified and applied
  5. Information about the contract is communicated to appropriate personnel
  6. Documentation relating to regulatory requirements, including supplier safety information is obtained and stored in accordance with workplace procedures
Supply of contracted goods or services is monitored and appropriate financial arrangements are approved

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Workplace approved systems are used to file information to ensure traceability of orders and financial transactions

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Organisational systems that require interaction with suppliers are identified and used where appropriate

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Quality assurance procedures for supplied goods/services are identified and applied

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Information about the contract is communicated to appropriate personnel

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Documentation relating to regulatory requirements, including supplier safety information is obtained and stored in accordance with workplace procedures

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.

Critical aspects of evidence

Locate, interpret and apply relevant information to the contract negotiations and provisions

Apply safety requirements throughout the work sequence, including the use of personal protective clothing and equipment

Establish and implement at least two significant contracts covering the following actions/activities:

establish the specification of the goods/service

identify and access probable suppliers

negotiate contracts considering:

legal and financial considerations requirements for the contract

requirements of workplace policy and procedures

discuss contract provisions and provide necessary explanations

check contract provisions as required by enterprise procedures

finalise contracts and file appropriate documentation

identify the impact of contract outcomes in terms of commercial risks

Suggest improvements to purchasing operations and where appropriate, negotiate changes

Work effectively with others

Resource implications

Goods or services required to be contracted, appropriate purchase order, formal contact or other documentation, enterprise supply or purchasing policy, suppliers

Method of assessment

Assessment methods must confirm consistency of performance over time and in a range of workplace relevant contexts.

Assessment should be by direct observation of tasks and/or samples of work and questioning on underpinning knowledge.

Assessment should be conducted over time and will generally be in conjunction with assessment of other units of competency.

Context of assessment

Assessment may occur on the job or in a simulated workplace facility with relevant equipment, simulated work instructions and deadlines.

Required Skills and Knowledge

Required skills

research, collect, organise and understand information related to contracting, including the relevant legal, technical, regulatory, fiscal, cultural, environmental and safety requirements

communicate ideas and information in a clear and unambiguous fashion and ensure that all communications satisfy the intent and legal requirements associated with contracting

plan and organise activities, including the preparation, completion, execution and finalisation of the contract within the specified timeframe and to avoid any back tracking, workflow interruptions or wastage

work with others in a team by recognising dependencies and using cooperative approaches to optimise workflow and productivity

use mathematical ideas and techniques to correctly complete calculations required to establish and implement the contract

create and apply systematic problem solving techniques to anticipate contracting problems, avoid supply difficulties

use the workplace technology related to contracting, including calculators, computing/computer-aided systems and relevant contracting software

Required knowledge

enterprise operating procedures and requirements

organisation resources, capacities and capabilities

contract management, preparation, submission and review processes

contract evaluation processes

financial and legal requirements for contracting

relevant legislation relating to contracting and contracting for goods and/or services of the organisation

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.

Unit scope

This unit covers the work involved in organising the initiation and completion of contract arrangements with identified suppliers. Contracts are generally in written form

The function is undertaken in accordance with established enterprise procedures and practices may include requirements recommended by manufacturers

Unit context

OHS requirements include legislation, building codes, material safety management systems, hazardous substances and dangerous goods codes and safe operating procedures

Work is carried out in accordance with legislative obligations, environmental legislation, relevant health regulations, authorised handling procedures and organisation insurance requirements

Work requires individuals to demonstrate organisational ability, discretion, judgement and problem solving skills

Workplace environment

Work in generally performed on a one-to-one basis with the client or client group

Customers or suppliers may be internal or external

The competency may apply in the workplaces that are involved in the function

Machines/equipment may include:

any machine typically used in the furnishing sector concerned

micro-processor or computer controlled machines

both production and facility equipment used in the enterprise.

Tools

Tools, equipment and spares or consumables may be involved

Information and procedures

Work procedures/instructions

Specification of the required goods or services

Supply system directories, indices, catalogues

Prevailing contract law

Legislation/regulations/national and industry codes and practices relevant to the goods/services

Quality and Australian standards and procedures