Unit of competency details

Unit descriptor 

This unit covers costing a project and defines the standard required to: identify resources for a project; investigate options for material supplies, services, contractors and consultants; research prices for required resources; calculate costs for the project; document a summary of project costs.

Application of the unit 

This unit applies to supervisors and managers who establish and oversee projects to the best financial advantage of the enterprise.

Prerequisite units 

Employability skills 

This unit contains employability skills.

ELEMENT 

PERFORMANCE CRITERIA 

1. Obtain current prices for project resources

1.1. Project objectives, required work activities and available finance are identified and interpreted according to the project plan and enterprise guidelines.

1.2. Resources required for project works are identified according to the project plan.

1.3. Factors affecting resource costs are identified using available information.

1.4. Add-on costs are taken into consideration according to enterprise guidelines.

1.5. Appropriate tools and equipment are selected and used for the calculation and documentation of project costs.

2. Calculate individual itemised costs of the project

2.1. Unit and total cost for each resource item is calculated according to enterprise guidelines.

2.2. Total itemised resource costs are evaluated against the financial schedule for the project.

2.3. Adjustments are made where required to reconcile resource costs with project schedules in strict adherence to enterprise guidelines for costing a project.

3. Prepare a summary of the cost of the project

3.1. Resource costs are collated and scheduled according to the project plan and enterprise guidelines.

3.2. Total project costs are accurately calculated and recorded according to enterprise guidelines.

3.3. Financial summary is collated, organised and submitted to management for approval.

REQUIRED SKILLS AND KNOWLEDGE 

This section describes the skills and knowledge required for this unit.

Required skills 

• research and evaluate information
• accurately complete financial calculations, collate and organise quantitative and financial information
• comply with legislative requirements
• document financial summaries for the understanding of staff, managers and contractors
• use literacy skills to read, interpret and follow organisational policies and procedures, develop sequenced written instructions, record accurately and legibly information collected and select and apply procedures to a range of tasks
• use oral communication skills/language competence to fulfil the job role as specified by the organisation including questioning, active listening, asking for clarification, negotiating solutions and responding to a range of views
• use interpersonal skills to work with others and relate to people from a range of cultural, social and religious backgrounds and with a range of physical and mental abilities.

Required knowledge 

• relevant State and Federal legislation, awards, enterprise agreements and management policies relating to labour hire and employment terms, and Occupational Health and Safety (OHS)
• current pricing structures and options for material supplies, services, contractors and consultants
• enterprise and industry standards and practices for formatting, organising and presenting financial and quantitative information.

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 

Competence in costing a project requires evidence that a person is able to obtain current prices for required resources, calculate costs and present a summary of project costs that provides for cost effective project outcomes. The evidence required to demonstrate competency in this unit must be relevant to workplace operations and satisfy holistically all of the requirements of the performance criteria and required skills and knowledge and include achievement of the following:

• identify resources for a project
• investigate options for material supplies, services, contractors and consultants
• research prices for required resources
• calculate costs for the project
• document a summary of project costs.

Context of and specific resources for assessment 

Competency requires the application of work practices under work conditions. Selection and use of resources for some worksites may differ due to the regional or enterprise circumstances.

RANGE STATEMENT 

The range statement relates to the unit of competency as a whole.

Projects may include:

• those carried out in horticultural or land management enterprises.

Unit sector 

Business

Co-requisite units 

Competency field