Modification History
Not Applicable
Unit Descriptor
Unit descriptor |
This unit of competency specifies the outcomes required to facilitate, implement and maintain a construction costing system in a building and construction organisation which is involved in either residential or commercial projects. It supports the establishment of the human resources and facilities necessary to produce accurate and successful costing information, providing a basis for accurate estimating and tendering processes in accordance with organisational guidelines. |
Application of the Unit
Application of the unit |
This unit of competency supports builders, project managers and related construction industry professionals responsible for coordinating and managing residential and commercial building or construction projects. |
Licensing/Regulatory Information
Not Applicable
Pre-Requisites
Prerequisite units |
Nil |
Employability Skills Information
Employability skills |
This unit contains employability skills. |
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1. Quantify and qualify factors to be included in the organisation costing system. |
1.1. Strategic factors impacting on the construction costing process are identified and quantified. 1.2. Range and scope of activities being undertaken by the organisation under the contract are quantified. 1.3. Strategic and operational factors impinging on organisation costing processes are qualified, and measures are introduced to capture cost data. |
2. Establish and implement organisational costing system. |
2.1. Design and development of organisational project planning system are directed and managed. 2.2. Criteria for implementing and maintaining systems concerned with costing the construction process are developed and formulated into active practice. 2.3. Methods are developed to gather and monitor actual cost information essential to construction costing process. 2.4. Approval of costing process is obtained from senior management. 2.5. Costing process is regularly evaluated to ensure accuracy and compliance with policy. |
3. Establish and implement a costing quality control system. |
3.1. Quality control procedures are based on sound financial principles and practices. 3.2. Staff are trained to ensure that quality assurance practices are applied to the costing process on a daily basis. 3.3. System is developed that allows reconciliation of invoices for progress payments against work completed, or due for completion, prior to payments being approved. |
4. Develop and implement a costing feedback system. |
4.1. Method to effectively and quickly communicate financial information concerning construction costs within the organisation is established and implemented. 4.2. Review and feedback system is developed and maintained using company project records and performance criteria to identify cost over-runs or savings within the contract. 4.3. Subcontractor feedback system, based on performance, progress and other strategic factors, is planned and strategically implemented. |
5. Establish recording and costing evaluation system. |
5.1. Documentation and recording system are instituted to meet organisational needs for ongoing evaluation of costing process. 5.2. Strategic balances and checks are applied that enable the ongoing maintenance of quality of the costing system. |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
Required skills for this unit are:
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Required knowledge |
Required knowledge for this unit is:
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Evidence Guide
EVIDENCE GUIDE |
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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. |
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Overview of assessment |
This unit of competency could be assessed by the development and implementation of an organisational construction costing system. This should include relevant aspects of the monitoring process to ensure continued financial viability of the organisation. This unit of competency can be assessed in the workplace or a close simulation of the workplace environment, provided that simulated or project-based assessment techniques fully replicate construction workplace conditions, materials, activities, responsibilities and procedures. |
Critical aspects for assessment and evidence required to demonstrate competency in this unit |
A person who demonstrates competency in this unit must be able to provide evidence of the ability to:
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Context of and specific resources for assessment |
This competency is to be assessed using standard and authorised work practices, safety requirements and environmental constraints. Assessment of essential underpinning knowledge will usually be conducted in an off-site context. Assessment is to comply with relevant regulatory or Australian standards' requirements. Resource implications for assessment include:
Reasonable adjustments for people with disabilities must be made to assessment processes where required. This could include access to modified equipment and other physical resources, and the provision of appropriate assessment support. |
Method of assessment |
Assessment methods must:
Validity and sufficiency of evidence requires that:
Assessment processes and techniques should as far as is practical take into account the language, literacy and numeracy capacity of the candidate in relation to the competency being assessed. Supplementary evidence of competency may be obtained from relevant authenticated documentation from third parties, such as existing supervisors, team leaders or specialist training staff. |
Range Statement
RANGE STATEMENT |
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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. |
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Strategic factors impacting on the construction costing process include: |
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Strategic and operational factors impinging on organisation costing processes include: |
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Criteria for implementing and maintaining systems concerned with costing the construction process include: |
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Quality control procedures for maintaining costing involve obtaining adequate feedback from clients, subcontractors and suppliers and include: |
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Evaluation of recording system and costing system includes: |
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Unit Sector(s)
Unit sector |
Construction |
Co-requisite units
Co-requisite units |
Nil |
Functional area
Functional area |