Unit of competency Outline
Date retreived
23/07/2026 5:43 AM AWST
23/07/2026 5:43 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.
Manage contracts
Manage contracts
Unit of competency
National Code
PSPPROC414A
PSPPROC414A
State Code
D3734
D3734
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
05/11/2014
Field of Education
080315 - Project Management
Original Release Date
05/11/2014
Nominal Hours
40
Description
This unit covers the ability to manage contracts. It includes undertaking preparations, establishing and maintaining contract management arrangements, monitoring and maintaining contract performance, and completing and reviewing contracts.In practice, managing contracts overlaps with other generalist and specialist public sector work activities, such as upholding and supporting the values and principles of public service and local government, identifying and treating risks, exercising delegations, applying government processes, encouraging compliance with legislation in the public sector or local government, planning procurement, developing and distributing requests for offers and selecting providers.Those who specialise in procurement are catered for by the units PSPPROC503B, PSPPROC504B, PSPPROC505A and PSPPROC506A, which address in depth the aspects of contract management performed by those who specialise in procurement.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Prepare to manage a contract
- 1.1. Contract requirements, approvals and funding arrangements are confirmed and clarified where necessary, and obligations and limits of authority as contract manager are identified in line with contractual and organisational requirements.
- 1.2. Operational elements of the contract are confirmed and contact is made with specialists and stakeholders to clarify and assist with contract administration issues.
- 1.3. Key contract clauses are identified and their content is clarified as necessary to ensure contract requirements are understood.
- 1.4. Process, timings, and key performance indicators are identified from the contract and confirmed with stakeholders.
- 1.5. Risks are confirmed and a risk management plan is developed or reviewed in line with contract requirements and organisational policy and procedures.
- 1.6. Contract management strategy is developed or obtained and key details are entered from the contract.
- 1.7. Contract management team is formed and roles and responsibilities are allocated.
2. Implement a contract management strategy
- 2.1. Start-up or transition arrangements are confirmed and implemented according to contract requirements and organisational procedures.
- 2.2. Information and communication strategies are established to meet contractor, stakeholder and organisational needs.
- 2.3. Risk management plan is monitored for effectiveness and adapted as necessary during the life of the contract.
- 2.4. Relationship with contractors and stakeholders is established and managed according to organisational policy and procedures and probity requirements.
- 2.5. Specialist expertise is obtained as necessary for progress meetings and for advice on or resolution of contract issues.
- 2.6. Consideration is given to OHS, environmental and sustainability principles and corporate social responsibility principles as they apply to the contract.
- 2.7. Contract information/documentation is maintained for organisational purposes according to organisational policy and procedures.
3. Monitor and maintain performance of a contract
- 3.1. Obligations to contractor and stakeholders are met according to contractual arrangements and organisational financial management requirements.
- 3.2. Monitoring and control measures and performance indicators are used to manage performance of contract and ensure that all obligations under the agreement are being met.
- 3.3. Contract variations are managed in accordance with the contract, organisational policy and procedures, and probity requirements.
- 3.4. Disputes and complaints are investigated and resolved or referred according to contract requirements.
- 3.5. Negotiation of issues relating to the contract is managed and approvals are obtained according to stipulations in the contract proper.
- 3.6. Communication is maintained with all stakeholders on the performance of the contract according to organisational protocols and public sector standards.
4. Complete and review contract.
- 4.1. Client satisfaction with contract deliverables is confirmed.
- 4.2. Contracts are finalised, amended, cancelled or terminated according to contractual arrangements.
- 4.3. Strategies are applied to manage close-out, and ensure renewal of contract or transition to a new contract meet organisational guidelines, probity requirements and public sector standards.
- 4.4. Review is undertaken of contract management, contractor performance relevant to measures at each stage of the contract, user satisfaction and audit results, when necessary.
- 4.5. Where measures or outcomes are not met in full, variances are documented and explained.
- 4.6. Information from the review and audit is used to report on contractor performance, to review contract management practice and make recommendations for improvement.
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:
memoranda of understanding and memoranda of agreement
in-house option directives
common use arrangements/standing offers
inter and intra-government agreements
letters of intent
licensing agreements
Specialists may include:
procurement and contracting
corporate finance
outsourced procurement or contracting advisers
legal advisers
functional/business
technical
business owner of the contract
OHS
environmental
audit and probity
appropriate cross-government department experts
Stakeholders may include:
end users, customers or clients, and sponsors
current or potential providers or suppliers
technical or functional experts or advisers
commonwealth, state or territory, and local government
the organisation
other public sector organisations
employees, unions and staff associations
industry bodies
local communities
lobby groups and special user groups
Key contract clauses may include:
specifications
variations
insurances
notices
disputes
intellectual property
privacy
confidentiality
milestones
payments
breaches
penalties
expected standards of behaviour
Risks may include:
contractor inability to meet agreements
end user or buyer inability to meet obligations
limited number of suppliers
corruption risks
probity risks
Contract management strategy may include:
formal contract management plan
contract management checklist
setting up routines
checking quality assurance systems
transferring legal responsibility
avoiding implied acceptance of varied conditions through non-enforcement of contractual obligations
applying environmental, sustainability and corporate responsibility principles
Contract management strategy may be obtained from:
procurement/contracting area
specialist contract managers
central agencies, such as state supply boards, and contract and management services
finance area
legal advisers
outsourced providers of contracting services
Communication strategies may include:
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
Monitoring and control measures may include:
inspections
tests
audits
reviews
meetings
progress reports
verifications
identification of non-conformances
corrective actions
Contract variations may include:
change of scope
change in prices
change in quantity
change to specifications
negotiation of new terms and conditions
dissolution of contracts
in writing
verbal variations, confirmed in writing
variations by action/inaction
Disputes may include:
disputes over:
requirements
delivery schedules
price changes
additional tasking
payment schedules
complaints from third parties
Techniques available to resolve disputes include:
conference
negotiation
mediation
expert determination
arbitration
resort to contractual conditions
legal considerations
Negotiation of issues may include:
contract variations
continuous improvement
innovations
non-compliance
consequences
Review may include:
planning process
evaluation considerations at each stage of the contract
sources and methods of gathering data
role of audit trails, where applicable
measuring outputs
meeting client needs
considering new and different ways of delivering the service or product in the future
strategies for continuous improvement
Contracts may include:
memoranda of understanding and memoranda of agreement
in-house option directives
common use arrangements/standing offers
inter and intra-government agreements
letters of intent
licensing agreements
Specialists may include:
procurement and contracting
corporate finance
outsourced procurement or contracting advisers
legal advisers
functional/business
technical
business owner of the contract
OHS
environmental
audit and probity
appropriate cross-government department experts
Stakeholders may include:
end users, customers or clients, and sponsors
current or potential providers or suppliers
technical or functional experts or advisers
commonwealth, state or territory, and local government
the organisation
other public sector organisations
employees, unions and staff associations
industry bodies
local communities
lobby groups and special user groups
Key contract clauses may include:
specifications
variations
insurances
notices
disputes
intellectual property
privacy
confidentiality
milestones
payments
breaches
penalties
expected standards of behaviour
Risks may include:
contractor inability to meet agreements
end user or buyer inability to meet obligations
limited number of suppliers
corruption risks
probity risks
Contract management strategy may include:
formal contract management plan
contract management checklist
setting up routines
checking quality assurance systems
transferring legal responsibility
avoiding implied acceptance of varied conditions through non-enforcement of contractual obligations
applying environmental, sustainability and corporate responsibility principles
Contract management strategy may be obtained from:
procurement/contracting area
specialist contract managers
central agencies, such as state supply boards, and contract and management services
finance area
legal advisers
outsourced providers of contracting services
Communication strategies may include:
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
Monitoring and control measures may include:
inspections
tests
audits
reviews
meetings
progress reports
verifications
identification of non-conformances
corrective actions
Contract variations may include:
change of scope
change in prices
change in quantity
change to specifications
negotiation of new terms and conditions
dissolution of contracts
in writing
verbal variations, confirmed in writing
variations by action/inaction
Disputes may include:
disputes over:
requirements
delivery schedules
price changes
additional tasking
payment schedules
complaints from third parties
Techniques available to resolve disputes include:
conference
negotiation
mediation
expert determination
arbitration
resort to contractual conditions
legal considerations
Negotiation of issues may include:
contract variations
continuous improvement
innovations
non-compliance
consequences
Review may include:
planning process
evaluation considerations at each stage of the contract
sources and methods of gathering data
role of audit trails, where applicable
measuring outputs
meeting client needs
considering new and different ways of delivering the service or product in the future
strategies for continuous improvement
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 manage 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 a contract management strategy in consultation with key stakeholders
develop a suitable contract management plan, using templates if available
implement the contract management plan
manage the performance of contractors
provide contractors with performance feedback
manage contract disputes to achieve prompt resolution and refer to higher authority when necessary
review contracts throughout to identify opportunities for continuous improvement
act within own delegations and refer issues to higher authority when necessary
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 contracts
codes of conduct and codes of practice
workplace scenarios and case studies relating to a range of procurement activities associated with managing contracts
case studies that incorporate dilemmas, and probity requirements relating to managing 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 managing contracts
review of contract management plans, contracts, contract variations, contractor performance reports, contract closure documents 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:
PSPETHC401A Uphold and support the values and principles of public service
PSPGOV417A Identify and treat risks
PSPGOV421A Exercise delegations
PSPLEGN401A Encourage compliance with legislation in the public sector
PSPPROC411A Plan procurement
PSPPROC412A Develop and distribute requests for offers
PSPPROC413A Select providers and develop contracts.
Overview of assessment
Competency must be demonstrated in the ability to manage 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 a contract management strategy in consultation with key stakeholders
develop a suitable contract management plan, using templates if available
implement the contract management plan
manage the performance of contractors
provide contractors with performance feedback
manage contract disputes to achieve prompt resolution and refer to higher authority when necessary
review contracts throughout to identify opportunities for continuous improvement
act within own delegations and refer issues to higher authority when necessary
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 contracts
codes of conduct and codes of practice
workplace scenarios and case studies relating to a range of procurement activities associated with managing contracts
case studies that incorporate dilemmas, and probity requirements relating to managing 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 managing contracts
review of contract management plans, contracts, contract variations, contractor performance reports, contract closure documents 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:
PSPETHC401A Uphold and support the values and principles of public service
PSPGOV417A Identify and treat risks
PSPGOV421A Exercise delegations
PSPLEGN401A Encourage compliance with legislation in the public sector
PSPPROC411A Plan procurement
PSPPROC412A Develop and distribute requests for offers
PSPPROC413A Select providers and develop contracts.
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| C8254 | PSPPROC410A | Administer contracts | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AWU40 | PSPPCM007 | Manage contracts | Unit of competency |