Modification History
PSPPROC506A Release 2: Layout adjusted. No changes to content.
PSPPROC506A Release 1: Primary release.
Unit Descriptor
This unit covers the ability to establish arrangements for contract management. It includes confirming contract requirements, preparing a contract management plan, and implementing contract strategies and contractual arrangements.
In practice, planning to manage a contract 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, managing contract performance, finalising contracts, managing procurement risk, 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 whose primary role is contract management, and 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. Confirm contract requirements |
1.1. Legislation , public sector standards and organisational requirements relating to probity , financial management, approvals and other considerations are identified for inclusion in the contract management plan. 1.2. Contract requirements are re-confirmed with all parties. 1.3. Obligations to the contractor, limits of authority and delegations relating to contract are determined according to contractual arrangements and organisational policy and procedures. 1.4. Start-up or transition arrangements are confirmed. |
2. Prepare contract management plan |
2.1. Contract risks are identified and risk management plan is developed in line with contract requirements and organisational policy and procedures. 2.2. Procedures to identify, receive and address contract variations are determined according to contract requirements and organisational policy and procedures. 2.3. Procedures to investigate, resolve or refer disputes or complaints are determined according to contract requirements and organisational policy and procedures. 2.4. Key performance indicators are developed and negotiated, and administrative processes are identified and approved for the life of the contract according to organisational policy procedures. 2.5. Contract management plan that addresses key elements is documented, approved and maintained according to organisational requirements. 2.6. Expected standards of behaviour, probity and privacy principles are applied to all elements of contract management plan. 2.7. Environmental, sustainability and corporate social responsibility principles are applied to all elements of contract management plan. |
3. Develop stakeholder relationships |
3.1. Stakeholder networks and relationships are identified. 3.2. Networking strategies are used, within probity boundaries, to establish, develop and maintain working relationships to promote benefits to the contract requirements. 3.3. Confidence of stakeholders is developed and maintained through high standards of behaviour and ethical conduct. 3.4. Negotiation strategies are used to achieve positive outcomes when difficult situations arise. 3.5. Communication requirements are identified and confirmed in line with contractual obligations and stakeholder needs. |
4. Implement contract strategies |
4.1. Requirements of confidentiality and freedom of information are identified for the contract. 4.2. Communication /information strategy is developed that matches needs of the organisation, the contract and the contractor's business environment. 4.3. Contract review requirements are established with stakeholders. 4.4. Contract review strategy is developed to review management of the contract, contractor performance and user satisfaction. |
5. Implement contractual arrangements |
5.1. Business relationship with contractor is established and managed according to organisational policy and procedures and probity requirements. 5.2. Start-up or transition arrangements are implemented. 5.3. Financial, administrative and information management processes are established. 5.4. Contractual arrangements are implemented according to contract management plan. 5.5. Appropriate contract records are maintained for the life of the contract. |
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 plan to manage a contract 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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Legislation , public sector standards and organisational requirements may include: |
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Probity principles: |
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Other considerations may include: |
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Contracts may include: |
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Contract requirements may include: |
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Delegations may include: |
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Contract risks may include: |
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Variation to agreements may arise from: |
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Procedures to resolve disputes may include: |
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Disputes may include: |
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Administrative processes may include: |
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Contract management plan may include: |
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Stakeholders may include: |
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Communication / information strategies may include: |
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Contract review strategy may include: |
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Contract records may include: |
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Unit Sector(s)
Not applicable.
Competency field
Procurement and Contract Management.