Unit of competency Outline

Date retreived
23/07/2026 11:13 AM AWST

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Develop contracts and manage contracted performance

Develop contracts and manage contracted performance

Unit of competency
National Code
ICAP6040B
State Code
D0176
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
08/07/2010
State Implementation and Classification
Approved Date
29/11/2007
Field of Education
080301 - Business Management
Original Release Date
29/11/2007
Nominal Hours
25
Description
This unit defines the competency required to negotiate and document contractual arrangements between clients, vendors and service providers and to monitor and manage performance against agreed contractual obligations.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication.
Notes
Elements and Performance Criteria
1. Establish contract
  • 1.1. Determine boundaries of the contract
  • 1.2. Document contract details and provide a copy to the client and vendor for review
  • 1.3. Obtain client and vendor feedback to clarify problems and misunderstandings
  • 1.4. Facilitate negotiations to resolve problems and misunderstandings
  • 1.5. Seek agreement from stakeholders
2. Monitor contract
  • 2.1. Monitor performance against contractual obligations to ensure desired level of quality is maintained
  • 2.2. Ascertain client satisfaction with contractual performance
  • 2.3. Identify and take action to address unsatisfactory performance
  • 2.4. Provide recommendations for contractual variations, if required
  • 2.5. Forward recommendations to the appropriate person for approval
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.

organisational policy
budget
time constraints
resources

internal departments
external organisations
clubs
individual people
internal employees

sponsors
users
development team
project team

supervisor
teacher
authorised business representative
client

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

Competency is demonstrated by negotiating and formulating extensive client support contracts by:

Accessing and analysing relevant information on resources and budgets
Analysing current and future client support requirements
Monitoring resource utilisation, cost efficiency and effectiveness against contractual obligations
Reviewing objectives and performance measures

To demonstrate competency in this unit the learner will require access to:

Detailed information relating to business strategic plan
Budget constraints
A timeframe for the strategic plan
Business objectives
Information on a range of IT business solutions
Access to the outcomes of a business analysis process (separate to this unit of competency)

Context of and specific resources for assessment
Action to promote client satisfaction is in line with organisational policy and values.
Organisational policy and procedures relating to contracting arrangements for IT are employed, monitored and evaluated.
Client requirements for support service delivery are satisfied within quality, time and cost parameters.
The purpose of most contracts is to specify the nature of agreement between two parties about the supply and receipt of goods or services.
It is essential that the contract take into consideration those variables that may impact upon agreed deliverables. These variables may include timing of the work or production of the item(s), the quality of production, the cost, the warranty and after-sales service.
Additionally, there is an obligation to ensure that conditions of the contract are actually fulfilled. This requires constant monitoring of whether the contract is still suitable and whether subsequent events have rendered the contract untenable to either party. This unit focuses on the process of constant review as a way of achieving this goal.
The breadth, depth and complexity involving analysis, design, planning, execution and evaluation across a range of technical and/or management functions including development of new criteria or applications or knowledge or procedures would be characteristic.

Assessment must ensure:

application of a significant range of fundamental principles and complex techniques across a wise and often unpredictable variety of contexts in relation to either varied or highly specific functions. Contribution to the development of a broad plan, budget or strategy may be involved and accountability and responsibility for self and others in achieving the outcomes may also be characteristic.
Applications involve significant judgement in planning, design, technical or leadership/guidance functions related to products, services, operations or procedures would be common.

Method of assessment
The purpose of this unit is to define the standard of performance to be achieved in the workplace. In undertaking training and assessment activities related to this unit, consideration should be given to the implementation of appropriate diversity and accessibility practices in order to accommodate people who may have special needs. Additional guidance on these and related matters is provided in ICA05 Section 1.
Competency in this unit should be assessed using summative assessment to ensure consistency of performance in a range of contexts. This unit can be assessed either in the workplace or in a simulated environment. However, simulated activities must closely reflect the workplace to enable full demonstration of competency.
Assessment will usually include observation of real or simulated work processes and procedures and/or performance in a project context as well as questioning on underpinning knowledge and skills. The questioning of team members, supervisors, subordinates, peers and clients where appropriate may provide valuable input to the assessment process. The interdependence of units for assessment purposes may vary with the particular project or scenario.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

ICAI5088B Evaluate and negotiate vendor offerings

An individual demonstrating this competency would be able to:

Demonstrate understanding of specialised knowledge with depth in some areas
Analyse, diagnose, design and execute judgement across a broad range of technical or management functions
Generate ideas through the analysis of information and concepts at an abstract level
Demonstrate a command of wide-ranging, highly specialised technical, creative or conceptual skills
Demonstrate accountability for personal outputs within broad parameters
Demonstrate accountability for personal and group outcomes within broad parameters
Maintain knowledge of industry products and services

Replaces
State Code National Code Title Type
C8777 ICAP6040A Develop contracts and manage contracted performance Unit of competency
Replaced By
State Code National Code Title Type
D7899 ICAICT602A Develop contracts and manage contracted performance Unit of competency
State Code National Code Title Type
C876 ICA60105 Advanced Diploma of Information Technology Qualification