Unit of competency Outline

Date retreived
22/07/2026 10:00 AM AWST

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Finalise contracts

Finalise contracts

Unit of competency
National Code
PSPPROC504B
State Code
D3738
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
3.00
Current Release Date
01/11/2012
State Implementation and Classification
Approved Date
05/11/2014
Field of Education
080301 - Business Management
Original Release Date
05/11/2014
Nominal Hours
30
Description
This unit covers the ability to finalise processes for contracts. It includes completing contracts and implementing a contract review strategy.In practice, finalising contracts may overlap with other public sector generalist and specialist work activities, such as promoting the values and ethos of public service and local government, undertaking negotiations, promoting compliance with legislation in the public sector or local government, managing contract performance, managing procurement risk, planning to manage a contract, planning for procurement outcomes and making procurement decisions.PSPPROC414A Manage contracts is the appropriate unit for people undertaking contract management as a minor part of their work role.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Complete contracts
  • 1.1. Contracts due to expire are reviewed to determine future requirements, and options for meeting those requirements are canvassed in sufficient time for decision making and transition to occur.
  • 1.2. Strategies are implemented to manage closure, renewal of contracts, or transition to a new contract according to organisational guidelines, probity requirements and public sector standards.
  • 1.3. Contracts are finalised, amended, cancelled or terminated according to contractual arrangements.
  • 1.4. Consultation is undertaken with contractor, and a contract completion report is issued addressing the performance of contractor and contract manager according to organisational requirements and public sector standards.
2. Implement contract review strategy
  • 2.1. Timing of contract review is determined to ensure a smooth transition to post-contract arrangements.
  • 2.2. Contract review is undertaken covering contract management, contractor performance relevant to measures at each stage of the contract, user satisfaction and audit results.
  • 2.3. Where measures or outcomes are not met in full, variances are documented and explained.
  • 2.4. Review report is prepared documenting outcomes against plans, final costs, user satisfaction, lessons learnt and any shortcomings in contract planning, management policies and procedures.
  • 2.5. Recommendations for improvement are made and supported with evidence, as a result of lessons learnt.
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.
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.
Timing of contract review may include:
periodically throughout the contract
when performance issues arise
prior to contract completion
concurrently with contract renewal process
after the contract is completed.
Contract review may include:
planning process
evaluation considerations at each stage of contract
sources and methods of gathering data
role of audit trails
measuring outputs
key performance indicators and their review
meeting client needs
innovation
strategies for continuous improvement.
Variances may include:
change of scope
negotiation of new terms and conditions
strategies for dealing with contractor performance
dissolution of contract.
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 finalise contracts 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 review strategy for contracts that are ending
complete relevant contract closure processes
ensure appropriate records have been kept
apply contract review techniques
make written recommendations for improvements to the procurement process based on review results
uphold probity standards in all dealings with contractors.
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 and finalising contracts
codes of conduct and codes of practice
workplace scenarios and case studies relating to a range of procurement activities associated with finalising contracts
case studies that incorporate dilemmas, and probity requirements relating to finalising contracts.
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 finalising contracts
review of contract management plans, contracts, contract variations, contractor performance reports, contract closure plans, transition plans, risk assessments and other contract finalisation 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
PSPPROC505A Manage procurement risk
PSPPROC506A Plan to manage a contract
PSPPROC507A Plan for procurement outcomes
PSPPROC508A Make procurement decisions.
Replaces
State Code National Code Title Type
C8258 PSPPROC504A Finalise contracts Unit of competency
Replaced By
State Code National Code Title Type
AWU38 PSPPCM009 Finalise contracts Unit of competency