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.
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.
Legislation, policy and public sector standards may include:
financial management legislation
government procurement, purchasing and contracting legislation, policy and guidelines
council rules and by-laws
public sector standards
codes of conduct, codes of practice and standards of individual behaviour
cross-cultural and social justice issues
environmental and sustainability policies
corporate social responsibility policies.
Formal and informal mechanisms may include:
non-confrontational interaction
hospitality
formal contract variations
formal negotiations
formal and informal meetings
regular and ad hoc reporting
review processes.
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.
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.
Risks may include:
supplier inability to meet obligations
end user or buyer inability to meet obligations
scope creep
client requirements not fully understood
becoming too dependent on a single supplier
disruption to continuity and consistency of service if too many suppliers are selected
other environmental influences
corruption risks
probity risks.
Variation to agreements may arise from:
change of scope
negotiation of new terms and conditions
dissolution of contracts
inability to deliver.
Early signs of under-performance may be detected through:
tracking milestones
regular meetings
meeting records and follow-up
file management and audit trail
stakeholder surveys on performance
ongoing review of deliverables.
Actions taken to improve performance may include:
discussion with contractor
regular interaction
ongoing performance feedback
provision of support
expert advice.
Disputes may include:
disputes over:
requirements
delivery schedules
price changes
additional tasking
payment schedules
complaints from third parties
formal and informal.
Techniques available to resolve disputes include:
conference
negotiation
mediation
arbitration
resort to contractual conditions
litigation.
Negotiation of issues may include:
contract variations
continuous improvement
innovations
non-compliance
consequences.
Actions as a result of unresolved conflict may include:
mediation
court action
termination of contract.
Communication strategies may include:
clear communication
understanding the needs of the service provider and the client
setting regular times to talk, meet or check on progress
protocols for dealing with other stakeholders
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 information may include:
contract and variations
contract management plan
financial records, including funding submissions, budgets, delegations, invoices and payments
contractor performance information
contract reports
information about disputes and other issues
complaints and compliments.
Organisational purposes may include:
probity and accountability
budget reporting
feeding into future procurement processes
performance management of suppliers
internal and external reviews and audits
governance requirements
legal compliance.

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 managing contract performance 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 and implement an appropriate contract management plan, using templates where available
develop and implement an appropriate transition plan, using templates where available
develop and maintain a sound business relationship with contractors within probity guidelines, upholding probity standards in all dealings with them
manage contractor performance so that goods and services are delivered according to the contract
provide the contractor with performance feedback
deal promptly and proactively with contract issues and disputes and refer to higher authority when this is not possible
communicate effectively with internal and external stakeholders about the operation of the contract.
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 managing contract performance
case studies that incorporate dilemmas and probity requirements relating to managing contract performance.
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 managing contract performance
review of contract management plans, contracts, contract variations, contractor performance reports, communication strategy 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
PSPPROC504B Finalise contracts
PSPPROC505A Manage procurement risk
PSPPROC506A Plan to manage a contract
PSPPROC507A Plan for procurement outcomes
PSPPROC508A Make procurement decisions.