Unit of competency Outline
Date retreived
22/07/2026 7:56 PM AWST
22/07/2026 7:56 PM 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 contract management arrangements
Establish contract management arrangements
Unit of competency
National Code
PSPPROC502A
PSPPROC502A
State Code
C8256
C8256
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
04/08/2008
Field of Education
080301 - Business Management
Original Release Date
04/08/2008
Nominal Hours
50
Description
This unit covers the establishment of arrangements for contract management by officers whose primary role is contract management, and who may or may not have had involvement in the procurement process preceding execution of the contract. PSPPROC410A Administer contracts is the appropriate unit for officers undertaking contract management as a minor part of their work role.The unit includes confirming contract requirements, preparing a contract management plan, implementing contract strategies and implementing contractual arrangements. In practice, establishing contract management arrangements may overlap with other public sector generalist and specialist work activities such as acting ethically, complying with legislation, providing client service, providing leadership, developing policy, undertaking negotiations.This is one of 4 units of competency in the Procurement&Contract Management Competency field that address the requirements of contract management performed by specialist contract managers.Related units are:PSPPROC501A Manage contract riskPSPPROC503A Manage contract performancePSPPROC504A Finalise contractsThe superseded unit PSPPROC404A Manage contracts is equivalent to the three units:PSPPROC502A Establish contract management arrangements + PSPPROC503A Manage contract performance PSPPROC504A Finalise contractsEquivalence may be claimed for EITHER:PSPPROC410A Administer contracts ORPSPPROC502A - 504A inclusive, but not both.This is a new unit of competency, added to the Procurement&Contract Management Competency field of the Training Package in 2004.
Notes
Elements and Performance Criteria
1 Confirm contract requirements
- 1.1 Legislation, public sector standards and organisational requirements relating to probity, financial management, approvals and other considerations are identified for inclusion in the contract management plan
- 1.2 Contract requirements are re-confirmed with all parties
- 1.3 Obligations to the contractor, limits of authority and delegations relating to the contract are determined in accordance with contractual arrangements and organisational policy and procedures
- 1.4 Start-up or transition arrangements are confirmed
2 Prepare contract management plan
- 2.1 Contract risks are identified and a risk management plan is developed in line with contract requirements and organisational policy and procedures
- 2.2 Procedures to identify, receive and address contract variations are determined in accordance with the contractual requirements and organisational procedures
- 2.3 Procedures to investigate, resolve or refer disputes/complaints are determined in accordance with contractual requirements and organisational procedures
- 2.4 Key performance indicators are developed/negotiated and administrative processes are identified and approved for the life of the contract in accordance with organisational procedures
- 2.5 Contract management plan that addresses all key elements is documented, approved and maintained in accordance with organisational requirements
- 2.6 Ethical behaviour, probity and privacy principles are applied to all elements of the contract management plan
3 Implement contract strategies
- 3.1 The requirements of confidentiality/freedom of information are identified for the contract
- 3.2 Communication requirements are identified/confirmed in line with contractual obligations and the needs of stakeholders
- 3.3 A communication/information strategy is developed that matches the needs of the organisation, the contract and the contractor's business environment
- 3.4 Contract review requirements are established with stakeholders
- 3.5 A contract review strategy is developed to review management of the contract, contractor performance and user satisfaction
4 Implement contractual arrangements
- 4.1 Business relationship with contractor is established and managed in accordance with organisational policy and procedures
- 4.2 Start-up or transition arrangements are implemented
- 4.3 Financial, administrative and information management processes are established
- 4.4 Contractual arrangements are implemented in accordance with the contract management plan
RANGE STATEMENT
The Range Statement provides information about the context in which the unit of competency is carried out. The variables cater for differences between States and Territories and the Commonwealth, and between organisations and workplaces. They allow for different work requirements, work practices and knowledge. The Range Statement also provides a focus for assessment. It relates to the unit as a whole. Text in italics in the Performance Criteria is explained here.
Legislation, standards and organisational requirements may include
financial management legislation
government procurement/purchasing/contracting legislation, policy and guidelines
public sector standards
ethics standards
codes of conduct/ethics
environmental purchasing
Probity principles are
accountability
transparency
confidentiality
management of conflicts of interest
maintained to:
ensure conformity to processes
facilitate accountability
ensure proponents are treated in a fair and equitable manner
encourage commercial competition, where appropriate
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
memoranda of understanding/memoranda of agreement
in-house option directives
common use arrangements/standing offers
inter/intra-government agreements
letters of intent
licensing
purchases from suppliers
Contract requirements may include
terms and conditions
specifications
risk
managing hospitality
clauses dealing with:
variations
insurance/s
notices
disputes
intellectual property
privacy
confidentiality
milestones
payments
breaches
Delegations may include
compliance with instructions or finance circulars
special consideration if they concern:
long-term travel deals
long-term computer deals
long-term lease deals
issuing of indemnities
other delegates
confirmation by chief financial officer
Ministerial authorisation
Risks might include
environmental factors
suppliers' inability to meet agreements
end users' or buyers' inability to meet obligations
limited number of suppliers
implications if dependence on one suppler is enshrined versus risks in lack of continuity and consistency of services provided
Variation to agreements may include/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 agreements
legal considerations
Disputes may include
disputes over:
requirements
delivery schedules
price changes
additional tasking
payment schedules
complaints from third parties
Administrative processes may include
file/records management
audit trail
recording meetings
notes and follow-ups of meetings and actions agreed
management reporting
Contract management plan may include
risk management plan
contingency plan
communication/public relations plans
human resource management plan
disposal plan
contract review plan
setting up routines
checking quality assurance systems
transfer of legal responsibility
insurances
strategies to avoid implied acceptance of varied conditions through non-enforcement of contractual obligations
environmental/green issues
industry policy
Stakeholders may include
contractor
organisation
board of management
steering committee
industry
advisory panel
clients
users
Parliamentarians
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
a diary system to monitor milestones, timeframes, receipt of deliverables etc
strategies for ensuring information flow at critical stages of the contract
Contract review strategymay 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
The Range Statement provides information about the context in which the unit of competency is carried out. The variables cater for differences between States and Territories and the Commonwealth, and between organisations and workplaces. They allow for different work requirements, work practices and knowledge. The Range Statement also provides a focus for assessment. It relates to the unit as a whole. Text in italics in the Performance Criteria is explained here.
Legislation, standards and organisational requirements may include
financial management legislation
government procurement/purchasing/contracting legislation, policy and guidelines
public sector standards
ethics standards
codes of conduct/ethics
environmental purchasing
Probity principles are
accountability
transparency
confidentiality
management of conflicts of interest
maintained to:
ensure conformity to processes
facilitate accountability
ensure proponents are treated in a fair and equitable manner
encourage commercial competition, where appropriate
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
memoranda of understanding/memoranda of agreement
in-house option directives
common use arrangements/standing offers
inter/intra-government agreements
letters of intent
licensing
purchases from suppliers
Contract requirements may include
terms and conditions
specifications
risk
managing hospitality
clauses dealing with:
variations
insurance/s
notices
disputes
intellectual property
privacy
confidentiality
milestones
payments
breaches
Delegations may include
compliance with instructions or finance circulars
special consideration if they concern:
long-term travel deals
long-term computer deals
long-term lease deals
issuing of indemnities
other delegates
confirmation by chief financial officer
Ministerial authorisation
Risks might include
environmental factors
suppliers' inability to meet agreements
end users' or buyers' inability to meet obligations
limited number of suppliers
implications if dependence on one suppler is enshrined versus risks in lack of continuity and consistency of services provided
Variation to agreements may include/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 agreements
legal considerations
Disputes may include
disputes over:
requirements
delivery schedules
price changes
additional tasking
payment schedules
complaints from third parties
Administrative processes may include
file/records management
audit trail
recording meetings
notes and follow-ups of meetings and actions agreed
management reporting
Contract management plan may include
risk management plan
contingency plan
communication/public relations plans
human resource management plan
disposal plan
contract review plan
setting up routines
checking quality assurance systems
transfer of legal responsibility
insurances
strategies to avoid implied acceptance of varied conditions through non-enforcement of contractual obligations
environmental/green issues
industry policy
Stakeholders may include
contractor
organisation
board of management
steering committee
industry
advisory panel
clients
users
Parliamentarians
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
a diary system to monitor milestones, timeframes, receipt of deliverables etc
strategies for ensuring information flow at critical stages of the contract
Contract review strategymay 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
The Evidence Guide specifies the evidence required to demonstrate achievement in the unit of competency as a whole. It must be read in conjunction with the Unit descriptor, Performance Criteria, the Range Statement and the Assessment Guidelines for the Public Sector Training Package.
Units to be assessed together
Pre-requisite units that must be achieved prior to this unit: Nil
Co-requisite units that must be assessed with this unit: Nil
Co-assessed units that may be assessed with this unit to increase the efficiency and realism of the assessment process include, but are not limited to:
PSPETHC501B Promote the values and ethos of public service
PSPGOV505A Promote diversity
PSPGOV507A Undertake negotiations
PSPGOV508A Manage conflict
PSPGOV511A Provide leadership
PSPGOV512A Use complex workplace communication strategies
PSPLEGN501B Promote compliance with legislation in the public sector
PSPPROC501A Manage contract risk
PSPPROC503A Manage contract performance
PSPPROC504A Finalise contracts
Overview of evidence requirements
In addition to integrated demonstration of the elements and their related performance criteria, look for evidence that confirms:
the knowledge requirements of this unit
the skill requirements of this unit
application of the Employability Skills as they relate to this unit (see Employability Summaries in Qualifications Framework)
contract management arrangements established in a range of (3 or more) contexts (or occasions, over time)
Resources required to carry out assessment
These resources include:
legislation, policy, procedures and protocols relating to contract management
case studies and workplace scenarios to capture the range of contract management situations likely to be encountered
Where and how to assess evidence
Valid assessment of this unit requires:
a workplace environment or one that closely resembles normal work practice and replicates the range of conditions likely to be encountered when establishing contract management arrangements, including coping with difficulties, irregularities and breakdowns in routine
contract management arrangements established in a range of (3 or more) contexts (or occasions, over time)
Assessment methods should reflect workplace demands, such as literacy, and the needs of particular groups, such as:
people with disabilities
people from culturally and linguistically diverse backgrounds
Aboriginal and Torres Strait Islander people
women
young people
older people
people in rural and remote locations
Assessment methods suitable for valid and reliable assessment of this competency may include, but are not limited to, a combination of 2 or more of:
case studies
demonstration
portfolios
projects
questioning
scenarios
authenticated evidence from the workplace and/or training courses
For consistency of 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
Units to be assessed together
Pre-requisite units that must be achieved prior to this unit: Nil
Co-requisite units that must be assessed with this unit: Nil
Co-assessed units that may be assessed with this unit to increase the efficiency and realism of the assessment process include, but are not limited to:
PSPETHC501B Promote the values and ethos of public service
PSPGOV505A Promote diversity
PSPGOV507A Undertake negotiations
PSPGOV508A Manage conflict
PSPGOV511A Provide leadership
PSPGOV512A Use complex workplace communication strategies
PSPLEGN501B Promote compliance with legislation in the public sector
PSPPROC501A Manage contract risk
PSPPROC503A Manage contract performance
PSPPROC504A Finalise contracts
Overview of evidence requirements
In addition to integrated demonstration of the elements and their related performance criteria, look for evidence that confirms:
the knowledge requirements of this unit
the skill requirements of this unit
application of the Employability Skills as they relate to this unit (see Employability Summaries in Qualifications Framework)
contract management arrangements established in a range of (3 or more) contexts (or occasions, over time)
Resources required to carry out assessment
These resources include:
legislation, policy, procedures and protocols relating to contract management
case studies and workplace scenarios to capture the range of contract management situations likely to be encountered
Where and how to assess evidence
Valid assessment of this unit requires:
a workplace environment or one that closely resembles normal work practice and replicates the range of conditions likely to be encountered when establishing contract management arrangements, including coping with difficulties, irregularities and breakdowns in routine
contract management arrangements established in a range of (3 or more) contexts (or occasions, over time)
Assessment methods should reflect workplace demands, such as literacy, and the needs of particular groups, such as:
people with disabilities
people from culturally and linguistically diverse backgrounds
Aboriginal and Torres Strait Islander people
women
young people
older people
people in rural and remote locations
Assessment methods suitable for valid and reliable assessment of this competency may include, but are not limited to, a combination of 2 or more of:
case studies
demonstration
portfolios
projects
questioning
scenarios
authenticated evidence from the workplace and/or training courses
For consistency of 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
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| D3736 | PSPPROC506A | Plan to manage a contract | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D177 | BSB51507 | Diploma of Purchasing | Qualification |