Modification History
PSPPROC503B Release 2: Layout adjusted. No changes to content.
PSPPROC503B Release 1: Primary release.
Unit Descriptor
This unit covers the competency required by people whose primary role is contract management to implement strategies that ensure effective contract performance. It includes managing the business relationship, performance of the contract, and contract issues; and implementing a communication strategy.
In practice, managing contract performance may overlap with other public sector and local government generalist and specialist work activities, such as promoting the values and ethos of public service or local government, undertaking negotiations, promoting compliance with legislation in the public sector, finalising contracts, managing procurement risk, planning to manage a contract, planning for procurement outcomes and making procurement decisions.
PSPPROC414A Manage contracts is the appropriate unit for people undertaking contract management as a minor part of their work role.
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 may or may not have had involvement in the procurement process preceding execution of the contract.
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. Manage the business relationship |
1.1. Probity is managed in accordance with organisational requirements, legislation , policy and public sector standards . 1.2. Obligations to the contractor are met according to contractual arrangements. 1.3. Consideration of conflicts of interest and their resolution are recorded according to public sector standards and organisational requirements. 1.4. Business relationship with contractor is managed in the public interest through formal and informal mechanisms according to public sector standards and organisational policy and procedures. |
2. Manage performance of the contract |
2.1. Start-up or transition arrangements are implemented according to contract requirements and organisational procedures. 2.2. Contract management plan is monitored for effectiveness on a regular basis and adapted as necessary during the life of the contract. 2.3. Performance of contract is monitored against key performance indicators and tracking milestones to ensure obligations under the agreement are being met. 2.4. E-procurement, financial and other resources are managed as necessary according to contract requirements and organisational procedures. 2.5. Emerging and potential risks are identified and managed according to organisational risk management procedures. |
3. Manage contract issues |
3.1. Contract variations are managed according to contract management plan, organisational policy and procedures, and probity requirements. 3.2. Early signs of under -performance are identified, and action is taken to improve performance to the agreed level and documented according to contract's communication and information policy. 3.3. Disputes and complaints are investigated and resolved or referred according to contract's management plan and contractual arrangements. 3.4. Negotiation of issues relating to the contract is conducted and approvals are obtained according to stipulations in the contract. 3.5. Conflict is addressed and resolved where possible or other actions are taken according to contractual arrangements. 3.6. Non-compliance with codes of conduct, codes of practice and standards of behaviour is dealt with in a timely manner. |
4. Implement communication and information strategy |
4.1. Communication on the performance of the contract is maintained with all stakeholders according to organisational protocols and public sector standards. 4.2. Management reporting is carried out according to tracking milestones and organisational requirements. 4.3. Contract information is maintained for organisational purposes according to organisational policy and procedures. |
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 managing contract performance 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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Probity principles: |
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Legislation , policy and public sector standards may include: |
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Formal and informal mechanisms may include: |
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Contract management plan may include: |
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Contracts may include: |
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Risks may include: |
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Variation to agreements may arise from: |
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Early signs of under -performance may be detected through: |
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Actions taken to improve performance 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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Actions as a result of unresolved conflict may include: |
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Communication strategies may include: |
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Contract information may include: |
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Organisational purposes may include: |
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Unit Sector(s)
Not applicable.
Competency field
Procurement and Contract Management.