Modification History
Not Applicable
Unit Descriptor
Unit descriptor |
This unit of competency specifies the outcomes required to select and prepare appropriate construction contracts, including the sections, clauses and conditions for low rise construction projects. The ability to interpret complex documents, communicate clearly and succinctly and negotiate is essential skills. |
Application of the Unit
Application of the unit |
This unit of competency supports the needs of builders, project managers, estimators and managers in the building and construction industry responsible for selecting and preparing contracts for building work. |
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. Identify and analyse the essential elements, sections and clauses of a business contract. |
1.1. Various types of building and construction contracts are identified and the appropriate application of each type is analysed. 1.2. Essential terms and elements of a valid contract are identified and analysed. 1.3. Importance of identifying an intention to create legal relations is analysed. 1.4. Rights and liabilities of parties under a contract are identified and analysed. 1.5. Common building contract terms and procedures are identified and applied. 1.6. Circumstances that bring about a breach of contract are identified and analysed. 1.7. Legislative requirements are identified and applied. |
2. Select an appropriate contract for the works to be undertaken. |
2.1. A contract, appropriate for the type of construction, is accurately selected. 2.2. Range of documents that collectively make up a contract is accurately identified and prepared. 2.3. Requirements associated with an offer and acceptance of a contract are accurately identified and applied. 2.4. Capacity of the parties to form a binding agreement in the form of a contract is confirmed. 2.5. Factors associated with the parties' consent to a contract are identified and applied. |
3. Prepare the contract. |
3.1. Expert advice is sought as required in the preparation of the contract. 3.2. Factors leading to the termination of a contract are defined, analysed and assessed during the preparation of the contract. 3.3. Contract rise and fall amounts are accurately calculated during the preparation of the contract. 3.4. Schedule of progress payments is assessed and included in the preparation of the contract. 3.5. Processes for applying for extensions of time are included in the preparation of the contract. 3.6. Final contract is prepared in consultation with relevant personnel and in accordance with the accepted processes of the organisation and legal requirements. |
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 selection and development of appropriate contracts, which meet organisational and industry standards and relate to low rise building structures. 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 |
It is essential that competence is demonstrated in the relevant aspects of contract selection and insertion of appropriate clauses, including rise and fall and progress payments. 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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Building and construction contracts relevant to the sector and organisational needs may include: |
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Range of documents includes: |
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Termination of a contract includes definitions and applications of: |
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Unit Sector(s)
Unit sector |
Construction |
Co-requisite units
Co-requisite units |
Nil |
Functional area
Functional area |