Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit applies to the initiation and completion of contract arrangements with identified suppliers. |
Application of the Unit
Application of the unit |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
Nil |
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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. Document goods/services to be contracted |
1.1. Specifications for the contract are drawn up identifying: 1.1.1. goods and/or services to be provided 1.1.2. criteria to be met 1.1.3. financial arrangements 1.2. Contract details are checked for compliance with enterprise purchasing policy or procedures 1.3. Contract is provided to potential suppliers in accordance with the enterprise practices |
2. Negotiate contract with supplier |
2.1. Requirements of the supply contract are discussed 2.2. Contract specification requirements are understood by the relevant parties 2.3. Areas of ambiguity or concern are clarified and resolved 2.4. Negotiations are undertaken with selected supplier for the contracting of required goods or services on a "without prejudice" basis 2.5. Conditions for supply of goods/services are agreed between the enterprise and the supplier, including the determination of key performance indicators 2.6. Alternative suppliers are negotiated with if agreement is unable to be reached 2.7. Contract price and conditions are negotiated and agreed 2.8. Negotiations conform to established enterprise requirements and relevant legislation |
3. Complete contract negotiations |
3.1. Contract documentation is drafted in accordance with relevant legislation, enterprise procedures and negotiated conditions of service and supply 3.2. Technical support in the drafting of contracts is accessed where required 3.3. Contract provisions are confirmed internally as required by enterprise practices or purchasing policy 3.4. Contract documentation is signed and exchanged between the relevant parties |
4. Complete enterprise contract requirements |
4.1. Supply of contracted goods or services is monitored and appropriate financial arrangements are approved 4.2. Workplace approved systems are used to file information to ensure traceability of orders and financial transactions 4.3. Organisational systems that require interaction with suppliers are identified and used where appropriate 4.4. Quality assurance procedures for supplied goods/services are identified and applied 4.5. Information about the contract is communicated to appropriate personnel 4.6. Documentation relating to regulatory requirements, including supplier safety information is obtained and stored in accordance with workplace procedures |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
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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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Critical aspects of evidence |
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Resource implications |
Goods or services required to be contracted, appropriate purchase order, formal contact or other documentation, enterprise supply or purchasing policy, suppliers |
Method of assessment |
Assessment methods must confirm consistency of performance over time and in a range of workplace relevant contexts. Assessment should be by direct observation of tasks and/or samples of work and questioning on underpinning knowledge. Assessment should be conducted over time and will generally be in conjunction with assessment of other units of competency. |
Context of assessment |
Assessment may occur on the job or in a simulated workplace facility with relevant equipment, simulated work instructions and deadlines. |
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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Unit scope |
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Unit context |
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Workplace environment |
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Machines /equipment may include : |
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Tools |
Tools, equipment and spares or consumables may be involved |
Information and procedures |
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Unit Sector(s)
Unit sector |
Furnishing Technology |
Competency field
Competency field |
Co-requisite units
Co-requisite units |
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