Unit of competency details

Unit descriptor 

This unit of competency specifies the outcomes required to implement and monitor purchasing processes for goods and services. It requires the ability to follow procurement procedures, determine and arrange appropriate suppliers, and check that final procurement meets client objectives.

The unit may form part of the licensing requirements for persons working in the property industry, including in the real estate, business broking, stock and station agency and property operations and development sectors, in those States and Territories where these are regulated activities.

Application of the unit 

This unit of competency supports the work of those involved in implementing and monitoring purchasing processes for goods and services.

Prerequisite units 

Nil

Employability skills 

The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary of the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the required performance needed to demonstrate achievement of the element. Where bold italicised  text is used, further information is detailed in the required skills and knowledge and/or the range statement. Assessment of performance is to be consistent with the evidence guide.

ELEMENT 

PERFORMANCE CRITERIA 

1 Determine procurement requirements .

1.1 Procurement  requirements and objectives are identified and confirmed according to organisational and legislative requirements .

1.2 Relevant information  is gathered and reviewed to determine appropriate procurement process  and time lines according to legislative requirements.

1.3 Factors likely to affect procurement objectives  are identified and agreed with relevant people  according to organisational procedures.

1.4 Personal limitations of authority are identified and appropriate approvals  gained as required according to organisational and legislative requirements.

2 Implement and monitor procurement process .

2.1 Procurement process is systematically monitored and variations to supply are agreed with relevant people according to organisational requirements.

2.2 Effective communication channels  are used to ensure an effective and accurate communication flow with suppliers.

2.3 Expenditure and resource usage are monitored to ensure procurement objectives are achieved within budget parameters.

2.4 Reliable methods of monitoring procurement are used according to organisational requirements, making efficient use of time and resources .

3 Finalise procurement process .

3.1 Procurement process is finalised within agreed timeframes according to organisational requirements.

3.2 Inspection is arranged to confirm procurement meets required quality standards and procurement objectives.

3.3 Defects or variances to procurement objectives are identified and prompt remedial action is taken according to organisational requirements.

3.4 Business equipment and technology  are used to maintain systems, records and reports  according to applicable OHS, organisational and legislative requirements.

REQUIRED SKILLS AND KNOWLEDGE 

This section describes the essential skills and knowledge and their level, required for this unit.

Required skills :

• communication skills to discuss and confirm procurement arrangements, interpret written and oral information, liaise with suppliers and obtain feedback
• computing skills to access the internet and web pages, prepare and complete online forms, lodge electronic documents and search online databases
• interpersonal skills to relate to people from a range of social, cultural and ethnic backgrounds and varying physical and mental abilities
• literacy skills to interpret written and oral information, including procurement policies and procedures; and access and understand a variety of information

• organisational skills to coordinate work schedules and time lines
• technology skills to complete documentation and maintain records, reports and a database of information about suppliers.

Required knowledge and understanding :

• benefits and risks of a range of procurement options, such as lease, purchase, sale and leaseback, and term contract
• best practice procurement principles
• implications of warranties, guarantees and exclusions
• key principles of procurement, including:

• accountability and recording
• ethics and fair dealing
• open and effective competition
• planning and professionalism
• value for money

• limitations of work role, responsibility and professional abilities
• organisation's policies and procedures for employment and tendering of services and procurement
• relevant Australian standards
• relevant federal and state or territory legislation and local government regulations related to:

• anti-discrimination
• consumer protection
• environmental issues
• equal employment opportunity (EEO)
• financial probity
• franchise and business structures
• industrial relations
• OHS
• property sales, leasing and management

• tendering and contracting processes, including a range of contractual arrangements

• user needs and requirements for facilities
• whole of life costing and price-quality relationship issues.

Overview of assessment 

This unit of competency could be assessed through practical demonstration of implementing and monitoring purchasing processes for goods and services. Targeted written (including alternative formats where necessary) or verbal questioning to assess the candidate's underpinning knowledge would provide additional supporting evidence of competence. The demonstration and questioning would include collecting evidence of the candidate's knowledge and application of ethical standards and relevant federal, and state or territory legislation and regulations. This assessment may be carried out in a simulated or workplace environment.

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:

• accurately reviewing procurement objectives and relevant information to determine procurement processes, and sourcing appropriate authority or delegations for procurement
• finalising procurement process within agreed timeframes and using business equipment and technology to maintain records and reports
• knowledge of organisation's practices, ethical standards and legislative requirements associated with implementing and monitoring purchasing processes for goods and services
• using communication to monitor effectively the implementation of the procurement process against budget parameters.

Context of and specific resources for assessment 

Resource implications for assessment include:

• access to suitable simulated or real opportunities and resources to demonstrate competence
• assessment instruments that may include personal planner and assessment record book
• access to a registered provider of assessment services.

Where applicable, physical resources should include equipment modified for people with disabilities.

Access must be provided to appropriate learning and/or assessment support when required.

Assessment processes and techniques must be culturally appropriate, and appropriate to the language and literacy capacity of the candidate and the work being performed.

Validity and sufficiency of evidence require that:

• competency will need to be demonstrated over a period of time reflecting the scope of the role and the practical requirements of the workplace
• where the assessment is part of a structured learning experience the evidence collected must relate to a number of performances assessed at different points in time and separated by further learning and practice with a decision of competence only taken at the point when the assessor has complete confidence in the person's competence
• all assessment that is part of a structured learning experience must include a combination of direct, indirect and supplementary evidence
• where assessment is for the purpose of recognition (RCC/RPL), the evidence provided will need to be current and show that it represents competency demonstrated over a period of time
• assessment can be through simulated project-based activity and must include evidence relating to each of the elements in this unit.

In all cases where practical assessment is used it will be combined with targeted questioning to assess the underpinning knowledge. Questioning will be undertaken in such a manner as is appropriate to the language and literacy levels of the candidate and any cultural issues that may affect responses to the questions, and will reflect the requirements of the competency and the work being performed.

Procurement  may include:

• common use contracts
• facilities management
• franchising
• gainsharing and open book
• incentive contracting
• leasing and buying
• maintenance and support arrangements
• pre-qualification of suppliers
• prime contractors and subcontractors
• research and development
• short-term or long-term arrangements
• sole or multiple suppliers
• standard form agreements
• standing orders.

Organisational requirements  may be outlined and reflected in:

• access and equity principles and practice guidelines
• business and performance plans
• complaint and dispute resolution procedures
• goals, objectives, plans, systems and processes
• legal and ethical requirements and codes of practice
• mission statements and strategic plans
• OHS policies, procedures and programs
• policies and procedures in relation to client service

• quality and continuous improvement processes and standards
• quality assurance and procedure manuals.

Legislative requirements  may be outlined and reflected in:

• Australian standards
• general duty of care to clients
• home building requirements
• privacy requirements
• relevant federal, and state or territory legislation that affects organisational operation, including:

• anti-discrimination and diversity
• environmental issues
• EEO
• industrial relations
• OHS

• relevant industry codes of practice covering the market sector and industry, financial transactions, taxation, environment, construction, land use, native title, zoning, utilities use (water, gas and electricity), and contract or common law
• strata, community and company titles
• tenancy agreements
• trade practices laws and guidelines.

Information  may relate to:

• budgets and operating costs
• contracts and tender documentation
• facility and asset management plans
• goods and services
• legal documentation
• maintenance plans and strategies
• management policy and procedures
• organisational and business strategic plans
• procurement guidelines, practices and policies
• property drawings
• quotations and invoices
• register of suppliers
• tenancy and other contracts.

Procurement process  may include:

• advertisement
• complying and non-complying tendering
• direct appointments
• open quotations
• register of suppliers.

Factors likely to affect procurement objectives  may relate to:

• budgetary constraints
• collaborative arrangements
• environmental issues
• factors and conditions that may affect supply
• industry involvement requirements
• leasing instead of up-front capital investment
• level of risk, complexity and sensitivity of information related to procurement
• political imperatives and strategies
• potential impact of intended contracting activity
• strategic and tactical issues
• supply market capacity, structure, maturity and strength.

Relevant people  may include:

• agents
• clients
• colleagues
• government personnel
• legal representatives
• members of industry associations
• property and facility owners or managers
• supervisors
• technical experts
• tenants.

Appropriate approvals  may be sought from:

• agents
• authorised delegations
• clients
• solicitors
• supervisors.

Communication channels  may include:

• direct line supervision paths
• lateral supervision paths
• organisational communication protocols and procedures
• organisational networks.

Resources  may include:

• contractors
• facilities
• information technology
• materials
• personnel
• professional service providers
• services
• tools and equipment
• transport.

Business equipment and technology  may include:

• computers
• data storage devices
• email
• facsimile machines
• internet, extranet and intranet
• photocopiers
• printers
• scanners
• software applications, such as databases and word applications.

Records and reports  may include:

• contracts and tenders
• electronic or paper-based information
• invoices
• logs and journals
• organisational forms
• procurement forms and reports
• quotations
• radio and telephone records
• records of conversation
• running sheets
• statements
• task allocation sheets.

Unit sector 

Property development, sales and management

Competency field 

Property operations and development