PSPPROC502A Establish contract management arrangements

Release: 1

PSPPROC502A Establish contract management arrangements

Modification History

Unit Descriptor

This unit covers the establishment of arrangements for contract management by officers whose primary role is contract management, and who may or may not have had involvement in the procurement process preceding execution of the contract.

PSPPROC410A Administer contracts is the appropriate unit for officers undertaking contract management as a minor part of their work role.

The unit includes confirming contract requirements, preparing a contract management plan, implementing contract strategies and implementing contractual arrangements.

In practice, establishing contract management arrangements may overlap with other public sector generalist and specialist work activities such as acting ethically, complying with legislation, providing client service, providing leadership, developing policy, undertaking negotiations.

This is one of 4 units of competency in the Procurement&Contract Management Competency field that address the requirements of contract management performed by specialist contract managers.

Related units are:

PSPPROC501A Manage contract riskPSPPROC503A Manage contract performancePSPPROC504A Finalise contracts

The superseded unit PSPPROC404A Manage contracts is equivalent to the three units:

PSPPROC502A Establish contract management arrangements + PSPPROC503A Manage contract performance PSPPROC504A Finalise contracts

Equivalence may be claimed for EITHER:

PSPPROC410A Administer contracts ORPSPPROC502A - 504A inclusive, but not both.

This is a new unit of competency, added to the Procurement&Contract Management Competency field of the Training Package in 2004.

Application of the Unit

Licensing/Regulatory Information

Pre-Requisites

Employability Skills Information

This unit contains employability skills.

Elements and Performance Criteria Pre-Content

Elements are the essential outcomes of the unit of competency.

Together, performance criteria specify the requirements for competent performance. Text in bold italics is explained in the Range Statement following.

Elements and Performance Criteria

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 the contract are determined in accordance with 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 a 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 in accordance with the contractual requirements and organisational procedures
2.3	Procedures to investigate, resolve or refer disputes/complaints are determined in accordance with contractual requirements and organisational procedures
2.4	Key performance indicators are developed/negotiated and administrative processes are identified and approved for the life of the contract in accordance with organisational procedures
2.5	Contract management plan that addresses all key elements is documented, approved and maintained in accordance with organisational requirements
2.6	Ethical behaviour, probity and privacy principles are applied to all elements of the contract management plan
3	Implement contract strategies	3.1	The requirements of confidentiality/freedom of information are identified for the contract
3.2	Communication requirements are identified/confirmed in line with contractual obligations and the needs of stakeholders
3.3	A communication/information strategy is developed that matches the needs of the organisation, the contract and the contractor's business environment
3.4	Contract review requirements are established with stakeholders
3.5	A contract review strategy is developed to review management of the contract, contractor performance and user satisfaction
4	Implement contractual arrangements	4.1	Business relationship with contractor is established and managed in accordance with organisational policy and procedures
4.2	Start-up or transition arrangements are implemented
4.3	Financial, administrative and information management processes are established
4.4	Contractual arrangements are implemented in accordance with the contract management plan

Required Skills and Knowledge

REQUIRED SKILLS AND KNOWLEDGE
This section describes the essential skills and knowledge and their level, required for this unit.
Skill requirements Look for evidence that confirms skills in: communication and negotiation with contractors and other stakeholders involving complex oral and written exchanges networking with diverse clients, contractors and end users responding to diversity, including gender and disability reading and applying complex documents such as contracts, legislation and guidelines applying occupational health and safety and environmental requirements in the context of contract management
Knowledge requirements Look for evidence that confirms knowledge and understanding of: Commonwealth/State/Territory Government legislation, policies, practices and guidelines relating to contract management, including environmental purchasing guidance contract management planning for a range of contractual situations privacy and confidentiality issues probity principles and issues whole-of-life considerations equal employment opportunity, equity and diversity principles financial and accounting issues relevant to the contract public sector legislation including occupational health and safety and environmental

Evidence Guide

The Evidence Guide specifies the evidence required to demonstrate achievement in the unit of competency as a whole. It must be read in conjunction with the Unit descriptor, Performance Criteria, the Range Statement and the Assessment Guidelines for the Public Sector Training Package.
Units to be assessed together	Pre-requisite units that must be achieved prior to this unit: Nil Co-requisite units that must be assessed with this unit: Nil Co-assessed units that may be assessed with this unit to increase the efficiency and realism of the assessment process include, but are not limited to: PSPETHC501B Promote the values and ethos of public service PSPGOV505A Promote diversity PSPGOV507A Undertake negotiations PSPGOV508A Manage conflict PSPGOV511A Provide leadership PSPGOV512A Use complex workplace communication strategies PSPLEGN501B Promote compliance with legislation in the public sector PSPPROC501A Manage contract risk PSPPROC503A Manage contract performance PSPPROC504A Finalise contracts
Overview of evidence requirements	In addition to integrated demonstration of the elements and their related performance criteria, look for evidence that confirms: the knowledge requirements of this unit the skill requirements of this unit application of the Employability Skills as they relate to this unit (see Employability Summaries in Qualifications Framework) contract management arrangements established in a range of (3 or more) contexts (or occasions, over time)
Resources required to carry out assessment	These resources include: legislation, policy, procedures and protocols relating to contract management case studies and workplace scenarios to capture the range of contract management situations likely to be encountered
Where and how to assess evidence	Valid assessment of this unit requires: a workplace environment or one that closely resembles normal work practice and replicates the range of conditions likely to be encountered when establishing contract management arrangements, including coping with difficulties, irregularities and breakdowns in routine contract management arrangements established in a range of (3 or more) contexts (or occasions, over time) Assessment methods should reflect workplace demands, such as literacy, and the needs of particular groups, such as: people with disabilities people from culturally and linguistically diverse backgrounds Aboriginal and Torres Strait Islander people women young people older people people in rural and remote locations Assessment methods suitable for valid and reliable assessment of this competency may include, but are not limited to, a combination of 2 or more of: case studies demonstration portfolios projects questioning scenarios authenticated evidence from the workplace and/or training courses
For consistency of 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

Range Statement

RANGE STATEMENT
The Range Statement provides information about the context in which the unit of competency is carried out. The variables cater for differences between States and Territories and the Commonwealth, and between organisations and workplaces. They allow for different work requirements, work practices and knowledge. The Range Statement also provides a focus for assessment. It relates to the unit as a whole. Text in italics in the Performance Criteria is explained here.
Legislation, standards and organisational requirements may include	financial management legislation government procurement/purchasing/contracting legislation, policy and guidelines public sector standards ethics standards codes of conduct/ethics environmental purchasing
Probity principles are	accountability transparency confidentiality management of conflicts of interest maintained to: ensure conformity to processes facilitate accountability ensure proponents are treated in a fair and equitable manner encourage commercial competition, where appropriate preserve public and private sector confidence in government processes
Other considerations may include	corporate governance intellectual property privacy freedom of information requirements public liability insurance considerations
Contracts may include	memoranda of understanding/memoranda of agreement in-house option directives common use arrangements/standing offers inter/intra-government agreements letters of intent licensing purchases from suppliers
Contract requirements may include	terms and conditions specifications risk managing hospitality clauses dealing with: variations insurance/s notices disputes intellectual property privacy confidentiality milestones payments breaches
Delegations may include	compliance with instructions or finance circulars special consideration if they concern: long-term travel deals long-term computer deals long-term lease deals issuing of indemnities other delegates confirmation by chief financial officer Ministerial authorisation
Risks might include	environmental factors suppliers' inability to meet agreements end users' or buyers' inability to meet obligations limited number of suppliers implications if dependence on one suppler is enshrined versus risks in lack of continuity and consistency of services provided
Variation to agreements may include/arise from	change of scope negotiation of new terms and conditions dissolution of contracts
Procedures to resolve disputes may include	conference negotiation mediation arbitration resort to contractual agreements legal considerations
Disputes may include	disputes over: requirements delivery schedules price changes additional tasking payment schedules complaints from third parties
Administrative processes may include	file/records management audit trail recording meetings notes and follow-ups of meetings and actions agreed management reporting
Contract management plan may include	risk management plan contingency plan communication/public relations plans human resource management plan disposal plan contract review plan setting up routines checking quality assurance systems transfer of legal responsibility insurances strategies to avoid implied acceptance of varied conditions through non-enforcement of contractual obligations environmental/green issues industry policy
Stakeholders may include	contractor organisation board of management steering committee industry advisory panel clients users Parliamentarians the public
Communication/ information strategies may include	setting regular times to talk, meet or check on progress protocols for dealing with other stakeholders appeals mechanisms for resolving conflict between clients and service providers clear communication reliability emergency contact arrangements a diary system to monitor milestones, timeframes, receipt of deliverables etc strategies for ensuring information flow at critical stages of the contract
Contract review strategymay include	planning process evaluation considerations at each stage of the contract sources and methods of gathering data role of audit trails measuring outputs meeting client needs innovation strategies for continuous improvement

Unit Sector(s)

Competency field

Procurement&Contract Management