Unit of competency Outline

Date retreived
23/07/2026 10:28 PM AWST

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Negotiate contracts

Negotiate contracts

Unit of competency
National Code
BSBPUR402
State Code
AUI18
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
25/03/2015
View on TGA
State Implementation and Classification
Approved Date
15/09/2015
Field of Education
090901 - Business And Commercial Law
Original Release Date
15/09/2015
Nominal Hours
30
Description
This unit describes the skills and knowledge required to negotiate terms of contracts with suppliers, and prepare and finalise contracts.It applies to individuals who negotiate contracts as part of a broad purchasing role but are not specialist legal practitioners. They are required to negotiate and formalise complex purchasing arrangements involving significant risk and/or significant expenditure and detailed legal and documentation arrangements and are typically guided by organisational contract negotiation guidelines. They work under minimal supervision of a senior purchasing manager or in consultation with senior management.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication.
Notes
Elements and Performance Criteria
1. Negotiate terms of contracts with suppliers
  • 1.1 Offer advice and undertake negotiations without prejudice
  • 1.2 Advise suppliers of the organisation’s intent to accept their offers
  • 1.3 Negotiate issues with suppliers
  • 1.4 Determine desired outcomes, negotiation plans and schedules for negotiations
  • 1.5 Undertake negotiations and reach agreements with suppliers in accordance with plans
  • 1.6 Negotiate and document contract requirements to the satisfaction of the organisation and suppliers
2. Prepare contracts
  • 2.1 Draft required contracts using legal expertise if required
  • 2.2 Distribute draft contracts to relevant personnel and suppliers
  • 2.3 Ensure any discrepancies or disagreements are clarified and resolved to the satisfaction of all parties
  • 2.4 Ensure checks of the legality and validity of draft contracts are made
  • 2.5 Obtain approvals to sign contracts
3. Finalise contracts
  • 3.1 Ensure contracts are signed and exchanged between the organisation and suppliers
  • 3.2 Ensure contracts and related documents are stored and safeguarded
  • 3.3 Advise relevant personnel of contract requirements
  • 3.4 Advise unsuccessful suppliers of non-acceptance of offers
No information
No information
Replaces
State Code National Code Title Type
D0959 BSBPUR402B Negotiate contracts Unit of competency
Replaced By
State Code National Code Title Type
OAE49 BSBPRC402 Negotiate contracts Unit of competency