Unit of competency details

CPCCBC5005A - Select and manage building and construction contractors (Release 1)


Usage recommendation:
Is superseded by and equivalent to CPCCBC5005 - Select and manage building and construction contractorsSupersedes and is equivalent to CPCCBC5005A Select and manage building and construction contractors. 26/Nov/2020

ReleaseRelease date
1 1 (this release) 19/May/2011


SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 040303 Building Construction Management  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 040303 Building Construction Management  25/Jun/2009 
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Modification History

Not Applicable

Unit Descriptor

Unit descriptor 

This unit of competency specifies the outcomes required to select and manage building and construction contractors.

It covers the processes and practices involved in supervising the systems through which the selection and management of subcontract resources occurs within the organisation, and through which subcontracting needs are identified and quantified.

In order to achieve the outcomes for this unit, knowledge of relevant industry legislation, standards and codes, the subcontracting system and industrial relations processes is required.

Application of the Unit

Application of the unit 

This unit of competency supports the needs of builders and senior managers within building and construction firms and other construction industry personnel responsible for selecting and managing building and construction contractors for medium rise building and construction projects.

Licensing/Regulatory Information

Not Applicable


Prerequisite units 


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



1. Manage the determination of subcontractor requirements.

1.1. Subcontractor resource requirements are assessed on the basis of expected operations and reference to the business plan.

1.2. Subcontractor requirements  are managed, prioritised and documented on the basis of expected work sequence and volume.

1.3. Task analyses are conducted and managed and competences are identified from the nature of the work to be done and organisational structure.

1.4. Type and number of subcontractors are determined and a formal subcontractor structure is developed for the project.

1.5. Industrial legislation and contract legal matters that impact on operations are researched to clarify workplace obligations and subcontractor rights.

2. Manage the review of subcontractor performance.

2.1. Existing subcontractor areas of expertise are identified or reviewed to build an operational profile for each subcontractor.

2.2. Information is gathered and examined on previous performance of existing subcontractors, their work profiles and history.

2.3. Reviewing subcontractor performance  for the purpose of identifying strengths and weaknesses is undertaken.

2.4. Management plan is developed for each subcontractor to enhance their ability to meet contractual obligations.

3. Establish terms and conditions for subcontractor engagement.

3.1. Subcontractor terms of engagement and scope of operations under the contract are developed or reviewed to ensure contract obligations can be met.

3.2. Conditions to be met under the terms of engagement for subcontractors are reviewed and periodically reinforced with the subcontractors.

4. Manage the selection and engagement of subcontractors.

4.1. Subcontractor engagement strategies and processes are developed and facilitated to meet organisational timelines and contract dates.

4.2. Processes for selection and engagement of subcontractors  are managed to ensure that equal opportunity principles apply to all applicants.

4.3. Subcontractor short-listing and qualification checking are managed to enable the selection and engagement of the most appropriate subcontractor.

4.4. Successful and unsuccessful tenderers are notified about the outcomes of the selection process.

4.5. Processes for commencement, induction and any required pre-engagement training are managed and implemented.

5. Evaluate subcontractor performance and compliance with contract requirements.

5.1. Systems that evaluate subcontractor performance and compliance with contract requirements are developed and managed.

5.2. Gathering of strategic information about subcontractor performance is managed under terms of confidentiality and security but within known collection parameters.

5.3. Performance review outcomes are discussed with subcontractors on a confidential and equitable basis.

5.4. Feedback and appeal systems are introduced and managed to ensure that subcontractors have the opportunity to challenge review outcomes.

5.5. Remedial or disciplinary action is undertaken against the subcontractor in accordance with organisational policy and operational guidelines where appropriate.

Required Skills and Knowledge


This section describes the skills and knowledge required for this unit.

Required skills 

Required skills for this unit are:

  • communication skills to:
  • enable clear and direct communication, using questioning to identify and confirm requirements, share information, listen and understand
  • communicate with subcontractors on all matters regarding selection and management
  • read and interpret:
  • industrial legislation and contract legal matters that impact on operations
  • subcontractor records and information
  • review tender responses
  • use and interpret non-verbal communication
  • use language and concepts appropriate to cultural differences
  • written skills to:
  • correspond with subcontractors
  • develop a management plan
  • record relevant information
  • developing and managing subcontract tender and selection processes
  • evaluation skills to undertake and manage subcontractor evaluations for the organisation and review subcontractor performance
  • managing subcontractor resources in an equitable and non-discriminatory manner
  • numeracy skills to apply calculations and estimate timeframes
  • organisation and management skills to manage the development of job profiles and competency statements for subcontractor appointments.

Required knowledge 

Required knowledge for this unit is:

  • contracts and workplace agreements
  • industrial relations structures and processes
  • industry subcontracting system and industry benchmarks for subcontract personnel
  • relevant licensing arrangements
  • subcontractor administration and performance management systems.

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.

Overview of assessment 

This unit of competency could be assessed by effective selection and management of building and construction contractors for medium rise projects against projected organisational activities and the business plan.

This unit of competency can be assessed in the workplace or a close simulation of the workplace environment, provided that simulated or project-based assessment techniques fully replicate construction workplace conditions, materials, activities, responsibilities and procedures.

Critical aspects for assessment and evidence required to demonstrate competency in this unit 

A person who demonstrates competency in this unit must be able to provide evidence of the ability to:

  • identify the subcontractor needs of the organisation based on an evaluation of organisation's projected work load and forward contractual commitments
  • assess the extent of effective systems introduced to review subcontractor performance and competency
  • implement an effective and efficient appointments process
  • implement an effective and efficient management of the system of subcontractor appointments to meet project timeframes
  • demonstrate remedial or disciplinary action for below standard subcontractor performance.

Context of and specific resources for assessment 

This competency is to be assessed using standard and authorised work practices, safety requirements and environmental constraints.

Assessment of essential underpinning knowledge will usually be conducted in an off-site context.

Assessment is to comply with relevant regulatory or Australian standards' requirements.

Resource implications for assessment include:

  • documentation that should normally be available in either a building or construction office
  • relevant codes, standards and regulations
  • office equipment, including calculators, photocopiers and telephone systems
  • computers with appropriate software to view 2-D CAD drawings, run costing programs and print copies
  • a technical reference library with current publications on measurement, design, building construction and manufacturers' product literature
  • copies of appropriate awards and workplace agreements
  • a suitable work area appropriate to this process.

Reasonable adjustments for people with disabilities must be made to assessment processes where required. This could include access to modified equipment and other physical resources, and the provision of appropriate assessment support.

Method of assessment 

Assessment methods must:

  • satisfy the endorsed Assessment Guidelines of the Construction, Plumbing and Services Training Package
  • include direct observation of tasks in real or simulated work conditions, with questioning to confirm the ability to consistently identify and correctly interpret the essential underpinning knowledge required for practical application
  • reinforce the integration of employability skills with workplace tasks and job roles
  • confirm that competency is verified and able to be transferred to other circumstances and environments.

Validity and sufficiency of evidence requires that:

  • competency will need to be demonstrated over a period of time reflecting the scope of the role and the practical requirements of the workplace
  • where the assessment is part of a structured learning experience the evidence collected must relate to a number of performances assessed at different points in time and separated by further learning and practice, with a decision on competency only taken at the point when the assessor has complete confidence in the person's demonstrated ability and applied knowledge
  • all assessment that is part of a structured learning experience must include a combination of direct, indirect and supplementary evidence.

Assessment processes and techniques should as far as is practical take into account the language, literacy and numeracy capacity of the candidate in relation to the competency being assessed.

Supplementary evidence of competency may be obtained from relevant authenticated documentation from third parties, such as existing supervisors, team leaders or specialist training staff.

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.

Subcontractor requirements  include:

  • calculating number of subcontractors required by the hours within the timeframe
  • calculating quantum of hours required to perform the work
  • determining total hours required for each function and stage of work
  • estimating project timeframe from start to finish
  • identifying work sequence and nature of job roles.

Reviewing subcontractor performance  includes:

  • anecdotal evidence, including input from project managers and administrators
  • examination of data provided by the subcontractor
  • input about subcontractor performance from other organisations
  • observation of the subcontractor on other project sites
  • using subcontractor performance records from previous associations.

Selection and engagement of subcontractors  include:

  • advising interviewees of the outcome of the selection process
  • arranging credit checks to determine subcontractor financial viability
  • ensuring selection interviews with subcontractors meet the criteria
  • providing invitations to tender for subcontract opportunities
  • reviewing tender responses and checking referees
  • undertaking contractual arrangements between the organisation and successful subcontractors.

Subcontractor performance and compliance with contract requirements  include:

  • establishment of performance benchmarks within subcontracts
  • participation by subcontractors in project meetings and provision of progress reports
  • performance management where performance is sub-standard or inappropriate
  • performance monitoring against project timelines and objectives
  • regular communication with subcontractors.

Unit Sector(s)

Unit sector 


Co-requisite units

Co-requisite units 


Functional area

Functional area