Unit of competency Outline

Date retreived
23/07/2026 2:05 AM AWST

Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.

Establish systems to develop and monitor building and construction costs

Establish systems to develop and monitor building and construction costs

Unit of competency
National Code
CPCCBC6011A
State Code
W9311
TGA Status
Replaced
DTWD Status
Transition (Replaced)
Current Release Number
1.00
Current Release Date
19/05/2011
State Implementation and Classification
Approved Date
27/03/2013
Field of Education
040307 - Building Construction Economics
Original Release Date
27/03/2013
Nominal Hours
60
Description
This unit of competency specifies the outcomes required to facilitate, implement and maintain a construction costing system in a building and construction organisation which is involved in either residential or commercial projects. It supports the establishment of the human resources and facilities necessary to produce accurate and successful costing information, providing a basis for accurate estimating and tendering processes in accordance with organisational guidelines.
Notes
Elements and Performance Criteria
1. Quantify and qualify factors to be included in the organisation costing system.
  • 1.1. Strategic factors impacting on the construction costing process are identified and quantified.
  • 1.2. Range and scope of activities being undertaken by the organisation under the contract are quantified.
  • 1.3. Strategic and operational factors impinging on organisation costing processes are qualified, and measures are introduced to capture cost data.
2. Establish and implement organisational costing system.
  • 2.1. Design and development of organisational project planning system are directed and managed.
  • 2.2. Criteria for implementing and maintaining systems concerned with costing the construction process are developed and formulated into active practice.
  • 2.3. Methods are developed to gather and monitor actual cost information essential to construction costing process.
  • 2.4. Approval of costing process is obtained from senior management.
  • 2.5. Costing process is regularly evaluated to ensure accuracy and compliance with policy.
3. Establish and implement a costing quality control system.
  • 3.1. Quality control procedures are based on sound financial principles and practices.
  • 3.2. Staff are trained to ensure that quality assurance practices are applied to the costing process on a daily basis.
  • 3.3. System is developed that allows reconciliation of invoices for progress payments against work completed, or due for completion, prior to payments being approved.
4. Develop and implement a costing feedback system.
  • 4.1. Method to effectively and quickly communicate financial information concerning construction costs within the organisation is established and implemented.
  • 4.2. Review and feedback system is developed and maintained using company project records and performance criteria to identify cost over-runs or savings within the contract.
  • 4.3. Subcontractor feedback system, based on performance, progress and other strategic factors, is planned and strategically implemented.
5. Establish recording and costing evaluation system.
  • 5.1. Documentation and recording system are instituted to meet organisational needs for ongoing evaluation of costing process.
  • 5.2. Strategic balances and checks are applied that enable the ongoing maintenance of quality of the costing system.
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.
Strategic factors impacting on the construction costing process include:
availability and accessibility of historical records
availability of materials and suppliers costs
awards, agreements and work practices
construction methodologies and practices
extent of information and anticipated degree of risk
margins, allowances, rates and penalties
organisational performance data
plant, equipment and provision of services.
Strategic and operational factors impinging on organisation costing processes include:
ability to gather specific information concerning actual versus estimated costs
establishment of internal and external performance management systems
relationships with organisation's financial management and construction management systems.
Criteria for implementing and maintaining systems concerned with costing the construction process include:
establishing and maintaining accurate estimating practices
gathering and classifying appropriate strategic and performance information
using the services of well trained and experienced personnel in the costing process.
Quality control procedures for maintaining costing involve obtaining adequate feedback from clients, subcontractors and suppliers and include:
establishing performance benchmarks for system
maintaining a quality dialogue with parties to construction process
monitoring internal expenditure and funding allocations.
Evaluation of recording system and costing system includes:
establishing and maintaining comprehensive records of bids
maintaining appropriate manual or electronic databases to assist performance comparisons
programmed and spontaneous reviews of success rates
providing secure and safe accommodation for costing information.
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 the development and implementation of an organisational construction costing system. This should include relevant aspects of the monitoring process to ensure continued financial viability of the organisation.
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:
implement effective cost development and monitoring system
apply management practices that result in a high level of staff productivity
interact effectively with personnel both within and external to the organisation
develop conceptual and strategic problem solving and systems
communicate effectively both verbally and in writing with senior management, employees, clients, regulatory authorities and legal representatives.
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
current publications on measurement, design, building construction and manufacturers' product literature
copies of appropriate awards and workplace agreements
a suitable work area appropriate to the construction 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.
Replaced By
State Code National Code Title Type
OCP70 CPCCBC6011 Establish systems to develop and monitor building and construction costs Unit of competency