Unit of competency
Modification History
Release |
Comments |
Release 1 |
This version first released with BSB Business Services Training Package Version 1.0. |
Application
This unit describes the skills and knowledge required to negotiate terms of contracts with suppliers, and prepare and finalise contracts.
It applies to individuals who negotiate contracts as part of a broad purchasing role but are not specialist legal practitioners. They are required to negotiate and formalise complex purchasing arrangements involving significant risk and/or significant expenditure and detailed legal and documentation arrangements and are typically guided by organisational contract negotiation guidelines. They work under minimal supervision of a senior purchasing manager or in consultation with senior management.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication.
Unit Sector
Administration – Purchasing and Contracting
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
Elements describe the essential outcomes. |
Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Negotiate terms of contracts with suppliers |
1.1 Offer advice and undertake negotiations without prejudice 1.2 Advise suppliers of the organisation’s intent to accept their offers 1.3 Negotiate issues with suppliers 1.4 Determine desired outcomes, negotiation plans and schedules for negotiations 1.5 Undertake negotiations and reach agreements with suppliers in accordance with plans 1.6 Negotiate and document contract requirements to the satisfaction of the organisation and suppliers |
2. Prepare contracts |
2.1 Draft required contracts using legal expertise if required 2.2 Distribute draft contracts to relevant personnel and suppliers 2.3 Ensure any discrepancies or disagreements are clarified and resolved to the satisfaction of all parties 2.4 Ensure checks of the legality and validity of draft contracts are made 2.5 Obtain approvals to sign contracts |
3. Finalise contracts |
3.1 Ensure contracts are signed and exchanged between the organisation and suppliers 3.2 Ensure contracts and related documents are stored and safeguarded 3.3 Advise relevant personnel of contract requirements 3.4 Advise unsuccessful suppliers of non-acceptance of offers |
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill |
Performance Criteria |
Description |
Reading |
1.5, 2.1, 2.4 |
|
Writing |
1.2, 1.6, 2.1, 2.3, 2.5, 3.3, 3.4 |
|
Oral Communication |
1.1-1.3, 1.5, 1.6, 2.5, 3.3 |
|
Navigate the world of work |
1.5, 1.6, 2.1, 2.4 |
|
Interact with others |
1.1-1.3, 1.5, 1.6, 2.2, 2.3, 2.5, 3.1, 3.3, 3.4 |
|
Get the work done |
1.4, 2.2, 2.3, 3.1, 3.2 |
|
Unit Mapping Information
Code and title current version |
Code and title previous version |
Comments |
Equivalence status |
BSBPUR402 Negotiate contracts |
BSBPUR402B Negotiate contracts |
Updated to meet Standards for Training Packages |
Equivalent unit |
Links
Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10