Unit of competency Outline

Date retreived
22/07/2026 7:12 AM AWST

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Set up and operate a self-employed contracting business

Set up and operate a self-employed contracting business

Unit of competency
National Code
MSFGN3007
State Code
OEY35
TGA Status
Current
DTWD Status
Approved
Current Release Number
1.00
Current Release Date
21/12/2022
View on TGA
State Implementation and Classification
Approved Date
19/04/2023
Field of Education
080301 - Business Management
Original Release Date
19/04/2023
Nominal Hours
55
Description
This unit describes the skills and knowledge required to establish and operate a small-scale business as a contractor or subcontractor. It does not include employing other people.Workers with this competency undertake routine tasks on residential and non-residential/commercial sites using discretion, judgement and problem-solving to identify and resolve routine and some non-routine issues. As self-employed contractors they work with a high degree of self-direction.No licensing or certification requirements exist at the time of publication. Relevant legislation, industry standards and codes of practice within Australia must be applied.
Notes
Elements and Performance Criteria
1. Set up a contracting business
  • 1.1. Identify and assess the ownership, taxation and liability aspects of relevant business models and determine an appropriate business structure
  • 1.2 Identify licences and permits required to operate the business and assess one’s ability to meet license/permit requirements
  • 1.3 Identify and document the business’ legislative, work health and safety, taxation superannuation and other obligations to authorities and subcontractors
  • 1.4 Identify and communicate with professionals required to meet contractual, accounting, legal, taxation and recordkeeping requirements
  • 1.5 Identify required insurances for risks related to income loss, public liability, vehicle operation and workers compensation
  • 1.6 Investigate methods of acquiring motor vehicles and other equipment, and decide on the most suitable method
  • 1.7 Determine the business’ policy about deposits, payments, timeframes and variations based on information reviewed
  • 1.8 Follow processes of relevant agencies and businesses to put in place required arrangements
2. Cost and quote work
  • 2.1 Identify opportunities to find customers
  • 2.2 Identify the customer’s requirements in sufficient detail for accurate costings
  • 2.3 Document job instructions according to the customer’s requirements
  • 2.4 Cost the job by estimating materials, labour and fixed costs, allowances for contingencies and profit margin and goods and services tax
  • 2.5 Prepare a quotation and contract conditions according to business procedures and submit it to the customer within the agreed timeframe
3. Manage and finalise contracts
  • 3.1 Maintain records to monitor costs as a job progresses
  • 3.2 Identify variations from contractual conditions and communicate with the customer to negotiate outcomes
  • 3.3 On completion of the job, produce and submit an invoice to the customer for final payment.
  • 3.4 Compare the predicted to the actual financial outcome and modify quoting methods and profit margin for future quotations
  • 3.5 Provide timely, accurate financial information to a bookkeeper or accountant in line with their requirements.
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State Code National Code Title Type
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