Modification History
Release |
TP Version |
Comments |
3 |
PSP12V1 |
Layout adjusted. No changes to content. |
2 |
PSP04V4.2. |
Layout adjusted. No changes to content. |
1 |
PSP04V4.1 |
Primary release. |
Unit Descriptor
This unit covers the ability to manage contracts. It includes undertaking preparations, establishing and maintaining contract management arrangements, monitoring and maintaining contract performance, and completing and reviewing contracts.
In practice, managing contracts overlaps with other generalist and specialist public sector work activities, such as upholding and supporting the values and principles of public service and local government, identifying and treating risks, exercising delegations, applying government processes, encouraging compliance with legislation in the public sector or local government, planning procurement, developing and distributing requests for offers and selecting providers.
Those who specialise in procurement are catered for by the units PSPPROC503B, PSPPROC504B, PSPPROC505A and PSPPROC506A, which address in depth the aspects of contract management performed by those who specialise in procurement.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Application of the Unit
This unit applies to those who are not specialist contract managers, but manage contracts as part of their role rather than as their primary role.
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Not applicable.
Employability Skills Information
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 range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1. Prepare to manage a contract |
1.1. Contract requirements, approvals and funding arrangements are confirmed and clarified where necessary, and obligations and limits of authority as contract manager are identified in line with contractual and organisational requirements. 1.2. Operational elements of the contract are confirmed and contact is made with specialists and stakeholders to clarify and assist with contract administration issues. 1.3. Key contract clauses are identified and their content is clarified as necessary to ensure contract requirements are understood. 1.4. Process, timings, and key performance indicators are identified from the contract and confirmed with stakeholders. 1.5. Risks are confirmed and a risk management plan is developed or reviewed in line with contract requirements and organisational policy and procedures. 1.6. Contract management strategy is developed or obtained and key details are entered from the contract. 1.7. Contract management team is formed and roles and responsibilities are allocated. |
2. Implement a contract management strategy |
2.1. Start-up or transition arrangements are confirmed and implemented according to contract requirements and organisational procedures. 2.2. Information and communication strategies are established to meet contractor, stakeholder and organisational needs. 2.3. Risk management plan is monitored for effectiveness and adapted as necessary during the life of the contract. 2.4. Relationship with contractors and stakeholders is established and managed according to organisational policy and procedures and probity requirements. 2.5. Specialist expertise is obtained as necessary for progress meetings and for advice on or resolution of contract issues. 2.6. Consideration is given to OHS, environmental and sustainability principles and corporate social responsibility principles as they apply to the contract. 2.7. Contract information/documentation is maintained for organisational purposes according to organisational policy and procedures. |
3. Monitor and maintain performance of a contract |
3.1. Obligations to contractor and stakeholders are met according to contractual arrangements and organisational financial management requirements. 3.2. Monitoring and control measures and performance indicators are used to manage performance of contract and ensure that all obligations under the agreement are being met. 3.3. Contract variations are managed in accordance with the contract, organisational policy and procedures, and probity requirements. 3.4. Disputes and complaints are investigated and resolved or referred according to contract requirements. 3.5. Negotiation of issues relating to the contract is managed and approvals are obtained according to stipulations in the contract proper. 3.6. Communication is maintained with all stakeholders on the performance of the contract according to organisational protocols and public sector standards. |
4. Complete and review contract. |
4.1. Client satisfaction with contract deliverables is confirmed. 4.2. Contracts are finalised, amended, cancelled or terminated according to contractual arrangements. 4.3. Strategies are applied to manage close-out, and ensure renewal of contract or transition to a new contract meet organisational guidelines, probity requirements and public sector standards. 4.4. Review is undertaken of contract management, contractor performance relevant to measures at each stage of the contract, user satisfaction and audit results, when necessary. 4.5. Where measures or outcomes are not met in full, variances are documented and explained. 4.6. Information from the review and audit is used to report on contractor performance, to review contract management practice and make recommendations for improvement. |
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
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 |
Competency must be demonstrated in the ability to manage contracts consistently in accordance with legislative and organisational requirements. |
Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Assessment must confirm the ability to:
Consistency in performance Competency should be demonstrated by providing evidence of undertaking a range of relevant work tasks in an actual or simulated procurement environment on at least two separate occasions. |
Context of and specific resources for assessment |
The unit of competency is to be assessed in the workplace or a simulated workplace environment. Access may be required to:
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Method of assessment |
The following assessment methods are suggested:
In all cases, practical assessment should be supported by questions to assess underpinning knowledge and those aspects of competency which are difficult to assess directly. Questioning techniques should suit the language and literacy levels of the candidate. |
Guidance information for assessment |
Evidence must be gathered over time in a range of contexts to ensure the person can achieve the unit outcome and apply the competency in different situations or environments. Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
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Range Statement
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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Contracts may include: |
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Specialists may include: |
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Stakeholders may include: |
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Key contract clauses may include: |
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Risks may include: |
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Contract management strategy may include: |
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Contract management strategy may be obtained from: |
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Communication strategies may include: |
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Monitoring and control measures may include: |
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Contract variations may include: |
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Disputes may include: |
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Techniques available to resolve disputes include: |
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Negotiation of issues may include: |
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Review may include: |
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Unit Sector(s)
Not applicable.
Competency field
Procurement and Contract Management.