Elements and Performance Criteria

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.
Legislation, public sector standards and organisational requirements may include:
financial management legislation
government procurement, purchasing and contracting legislation, policy and guidelines
ethics standards
codes of conduct and codes of practice
environmental purchasing
Probity principles:
may include:
accountability
transparency
confidentiality
managing conflict of interest
impartiality
are maintained to:
ensure conformity to processes
facilitate accountability
ensure proponents are treated in a fair and equitable manner
encourage commercial completion
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:
formal written contracts
standing offers (panels)
multi-use lists and similar arrangements
inter and intra-government agreements
letters of intent
memoranda of understanding and memoranda of agreement
licensing agreements
in-house option directives
Contract requirements may include:
terms and conditions
specifications
risk
managing hospitality
clauses dealing with:
variations
insurances
notices
disputes
intellectual property
privacy
confidentiality
milestones
payments
breaches
Delegations may include:
financial delegations
procurement delegations
compliance with instructions or finance circulars
special consideration if they concern travel, computers or software, leasing arrangements or issuing indemnities, or other special categories of goods and services
other delegations, such as disposals and human resources
confirmation by chief financial officer
ministerial authorisation
Contract risks may include:
contextual/environmental factors
supplier inability to meet obligations
end user or buyer inability to meet obligations
unclear contract terms and conditions
contractual disputes
factors outside the control of either party, such as global health pandemic, failure of third-party businesses, and natural disasters
implications if dependence on one supplier, versus risks in lack of continuity and consistency of services provided
Variation to agreements may 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 conditions
litigation
Disputes may include:
disputes over:
requirements
delivery schedules
price changes
additional tasking
payment schedules
complaints from third parties
Administrative processes may include:
file and records management
audit trail
methodology for recording meetings
notes and follow-ups of meetings and actions agreed
management reporting
Contract management plan may include:
risk management plan
contingency plan
communication and public relations plan
human resource management plan
disposal plan
contract review plan
setting up routines
quality assurance systems
arrangements for transfer of legal responsibility
insurances
strategies to avoid implied acceptance of varied conditions through non-enforcement of contractual obligations
environmental/green procurement, sustainability and corporate social responsibility principles
Stakeholders may include:
contractor
buying organisation
board of management
steering committee
advisory panel
staff
union
industry
client
end user
parliamentarian
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
diary system to monitor milestones, timeframes, receipt of deliverables, etc.
strategies for ensuring information flow at critical stages of the contract
Contract review strategy may 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
Contract records may include:
contract and variations
contract management plan
financial records, such as funding submissions, budgets, delegations, invoices and payments
contractor performance information
contract reports
information about disputes and other issues
complaints and compliments

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
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:
develop a contract management strategy in consultation with key stakeholders
develop a contract management plan suited to more complex contracts, using templates if available, which may include sub-plans such as risk, transition and probity
implement the contract management strategy and the contract management plan
develop and maintain a sound business relationship with internal and external stakeholders
manage the performance of contractors to ensure the effective delivery of value for money outcomes under the contract
manage more complex contract disputes to achieve prompt resolution and refer to higher authority when necessary
review contract throughout to identify opportunities for continuous improvement
act within own delegations and refer issues to higher authority when necessary.
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:
legislation, policy, procedures and protocols relating to procuring goods and services and managing contracts
codes of conduct and codes of practice
workplace scenarios and case studies relating to a range of procurement activities associated with planning to manage a contract
case studies that incorporate dilemmas, and probity requirements relating to planning to manage a contract.
Method of assessment
The following assessment methods are suggested:
questions to assess understanding of relevant legislation and procedures
review of strategies and approaches adopted for planning to manage a contract
review of contract management plans, contracts, probity plans, budgets, transition plans, approvals and sign-offs, and other documentation prepared by the candidate in a range of contexts
review of stakeholder engagement approaches adopted by the candidate.
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:
PSPETHC501B Promote the values and ethos of public service
PSPGOV507A Undertake negotiations
PSPLEGN501B Promote compliance with legislation in the public sector
PSPPROC503B Manage contract performance
PSPPROC504B Finalise contracts
PSPPROC505A Manage procurement risk
PSPPROC507A Plan for procurement outcomes
PSPPROC508A Make procurement decisions.