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Unit of competency details

BSBPUR402 - Negotiate contracts (Release 1)

Summary

Usage recommendation:
Superseded
Mapping:
MappingNotesDate
Is superseded by and equivalent to BSBPRC402 - Negotiate contracts 26/Sep/2018
Supersedes and is equivalent to BSBPUR402B - Negotiate contractsUpdated to meet Standards for Training Packages 24/Mar/2015

Releases:
ReleaseRelease date
1 1 (this release) 25/Mar/2015


Training packages that include this unit

Qualifications that include this unit

CodeSort Table listing Qualifications that include this unit by the Code columnTitleSort Table listing Qualifications that include this unit by the Title columnUsage RecommendationRelease
SFL40115 - Certificate IV in FloristryCertificate IV in FloristryCurrent1-2 
AUR50116 - Diploma of Automotive ManagementDiploma of Automotive ManagementCurrent1-2 
CUA40213 - Certificate IV in Community CultureCertificate IV in Community CultureSuperseded2-4 
CUA50513 - Diploma of Live Production DesignDiploma of Live Production DesignSuperseded2-4 
BSB41615 - Certificate IV in PurchasingCertificate IV in PurchasingSuperseded1-2 
CUA50415 - Diploma of Live Production and Technical ServicesDiploma of Live Production and Technical ServicesSuperseded1-3 
CUA40415 - Certificate IV in Live Production and Technical ServicesCertificate IV in Live Production and Technical ServicesSuperseded1-3 
CUA40915 - Certificate IV in Music IndustryCertificate IV in Music IndustrySuperseded1-3 
SFL50115 - Diploma of Floristry DesignDiploma of Floristry DesignCurrent
DEF40917 - Certificate IV in Performance Based ContractingCertificate IV in Performance Based ContractingCurrent
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Classifications

SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 090901 Business And Commercial Law  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 090901 Business And Commercial Law  30/Jul/2015 
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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

  • Interprets and analyses textual information from a range of sources and identifies relevant key information to assist in the negotiation process

Writing

1.2, 1.6, 2.1, 2.3, 2.5, 3.3, 3.4

  • Develops material to convey explicit information and results using clear and detailed language appropriate to audience and context

Oral Communication

1.1-1.3, 1.5, 1.6, 2.5, 3.3

  • Uses clear language and suitable features to provide information to a variety of individuals
  • Uses active listening and questioning techniques to convey and clarify information

Navigate the world of work

1.5, 1.6, 2.1, 2.4

  • Monitors adherence to implicit and explicit organisational procedures and policies
  • Recognises the implications of legal and regulatory responsibilities related to own work and is beginning to recognise some general legal principles applicable across work contexts

Interact with others

1.1-1.3, 1.5, 1.6, 2.2, 2.3, 2.5, 3.1, 3.3, 3.4

  • Selects the appropriate form, channel and mode of communication for a specific purpose relevant to own role
  • Collaborates and negotiates with others as part of familiar routine activities

Get the work done

1.4, 2.2, 2.3, 3.1, 3.2

  • Takes responsibility for planning, sequencing and prioritising tasks for efficient and effective outcomes
  • Implements standard procedures to make routine decisions
  • Recognises and takes responsibility for addressing predictable problems in familiar work contexts
  • Understands the importance of secure information in relation to own work

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

 

Assessment requirements

Modification History

Release 

Comments 

Release 1

This version first released with BSB Business Services Training Package Version 1.0.

Performance Evidence

Evidence of the ability to:

  • produce a documented agreement of terms with suppliers
  • draft and complete a contract with a supplier for goods and services
  • produce a document to inform successful and unsuccessful suppliers.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

  • identify and provide an overview of key provisions of relevant legislation, codes of practice and national standards that affect purchasing
  • outline organisation practices, policies and procedures for purchasing
  • explain purchasing and procurement principles for:
  • accountability
  • probity and transparency
  • risk management
  • value for money.

Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the administration – purchasing and contracting field of work and include access to:

  • organisation policies and procedures
  • purchasing strategies and relevant purchasing records
  • office equipment and supplies
  • case studies and, where possible, real situations.

Assessors must satisfy NVR/AQTF assessor requirements.

Links

Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10