Unit of competency Outline
Date retreived
21/07/2026 11:16 PM AWST
21/07/2026 11:16 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.
Administer contracts
Administer contracts
Unit of competency
National Code
PSPPROC410A
PSPPROC410A
State Code
C8254
C8254
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
26/09/2008
Field of Education
080313 - Public And Health Care Administration
Original Release Date
26/09/2008
Nominal Hours
40
Description
This unit covers the administration of contracts by officers who administer contracts as part of their role, rather than as their primary role. They are not specialist contract managers. Specialist contract managers are catered for by the units PSPPROC501A - 504A, added to the Procurement&Contract Management Competency field of the Training Package in 2004, which address in depth the aspects of contract management performed by specialist contract managers. NB: PSPPROC404A Manage contracts (from PSP99) is equivalent to the three units:PSPPROC502A Establish contract management arrangements + PSPPROC503A Manage contract performance + PSPPROC504A Finalise contractsThis unit includes undertaking preparations, establishing and maintaining contract administration arrangements, monitoring and maintaining contract performance, and completing and reviewing contracts.In practice, administration of contracts overlaps with other public sector generalist and specialist work activities such as acting ethically, complying with legislation, applying government processes, working with diversity, using resources, etc. 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 Prepare to administer a contract
- 1.1 Contract requirements, approvals and funding arrangements are confirmed and clarified where necessary, and obligations and limits of authority as contract administrator are identified in line with contractual and organisational requirements
- 1.2 Operational elements of the contract are confirmed and contact is made with specialists 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 The 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 in line with contract requirements and organisational policy and procedures
- 1.6 A contract administration strategy is developed or obtained and key details are entered from the contract
2 Establish and maintain contract administration arrangements
- 2.1 Start-up or transition arrangements are confirmed and implemented in accordance with contract requirements and organisational procedures
- 2.2 Communication/information strategies are established to meet contractor and organisational needs
- 2.3 Risks management plan is monitored for effectiveness and adapted as necessary during the life of the contract
- 2.4 Relationship with contractor is established and managed in accordance with organisational policy and procedures
- 2.5 Specialist expertise is obtained as necessary for progress meetings and for advice on/resolution of contract issues
- 2.6 Contract information/documentation is maintained for organisational purposes in accordance with organisational policy and procedures
3 Monitor and maintain the performance of a contract
- 3.1 Obligations to the contractor are met in accordance with contractual arrangements and the organisation's financial management requirements
- 3.2 Performance of the contract is monitored against performance indicators to ensure all obligations under the agreement are being met
- 3.3 Contract variations are managed in accordance with the contract and organisational policy and procedures
- 3.4 Disputes/complaints are investigated and resolved or referred in accordance with contractual requirements
- 3.5 Negotiation of issues relating to the contract is managed and approvals are obtained in accordance with stipulations in the contract proper
- 3.6 Communication/reporting on the performance of the contract is maintained with all stakeholders in accordance with organisational protocols and public sector standards
4 Complete and review contract
- 4.1 Contracts are finalised, amended, cancelled or terminated in accordance with contractual arrangements
- 4.2 Strategies to manage close-out, renewal of the contract or transition to a new contract meet organisational guidelines and public sector standards
- 4.3 Review is undertaken of contract administration, contractor performance relevant to measures at each stage of the contract, user satisfaction and audit results, when necessary
- 4.4 Where measures or outcomes are not met in full, variances are documented and explained
- 4.5 Information from the review (and audit) is used to report on contractor performance, to review contract administration practice and make recommendations for improvement
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.
Contracts may also include
memoranda of understanding/memoranda of agreement
in-house option directives
common use arrangements/standing offers
inter/intra-government agreements
letters of intent
licensing agreements
Specialists may include
procurement and/or contracting area
corporate finance area
outsourced procurement/contracting advisers
legal advisers
functional/business area
business owner of the contract
appropriate cross-government department experts
Key contract clauses may include
variation
insurances
notices
disputes
intellectual property
privacy
confidentiality
milestones
payments
breaches
penalties
Risks might include
contractor inability to meet agreements
end user or buyer inability to meet obligations
limited number of suppliers
Contract administration strategy may include
formal contract administration plan
contract administration check list
setting up routines
checking quality assurance systems
transfer of legal responsibility
avoiding implied acceptance of varied conditions through non-enforcement of contractual obligations
Contract administration strategy may be obtained from
procurement/contracting area
specialist contract managers
central agencies such as state supply boards, contract and management services
finance area
legal advisers
outsourced providers of contracting services
Effective communication strategies may include
setting regular times to talk, meet or check on progress
protocols for dealing with other stakeholders
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
Variation to agreements may include
change of scope
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
arbitration
resort to contractual agreements
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
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.
Contracts may also include
memoranda of understanding/memoranda of agreement
in-house option directives
common use arrangements/standing offers
inter/intra-government agreements
letters of intent
licensing agreements
Specialists may include
procurement and/or contracting area
corporate finance area
outsourced procurement/contracting advisers
legal advisers
functional/business area
business owner of the contract
appropriate cross-government department experts
Key contract clauses may include
variation
insurances
notices
disputes
intellectual property
privacy
confidentiality
milestones
payments
breaches
penalties
Risks might include
contractor inability to meet agreements
end user or buyer inability to meet obligations
limited number of suppliers
Contract administration strategy may include
formal contract administration plan
contract administration check list
setting up routines
checking quality assurance systems
transfer of legal responsibility
avoiding implied acceptance of varied conditions through non-enforcement of contractual obligations
Contract administration strategy may be obtained from
procurement/contracting area
specialist contract managers
central agencies such as state supply boards, contract and management services
finance area
legal advisers
outsourced providers of contracting services
Effective communication strategies may include
setting regular times to talk, meet or check on progress
protocols for dealing with other stakeholders
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
Variation to agreements may include
change of scope
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
arbitration
resort to contractual agreements
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
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:
PSPETHC401A Uphold and support the values and principles of public service
PSPGOV404B Develop and implement work unit plans
PSPGOV408A Value diversity
PSPGOV411A Deal with conflict
PSPGOV412A Use advanced workplace communication strategies
PSPGOV422A Apply government processes
PSPLEGN401A Encourage compliance with legislation in the public sector
PSPPOL404A Support policy implementation
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)
administration of contracts 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 administration
case studies and workplace scenarios to capture the range of contract administration 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 administering contracts, including coping with difficulties, irregularities and breakdowns in routine
administration of contracts 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
portfolios
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:
PSPETHC401A Uphold and support the values and principles of public service
PSPGOV404B Develop and implement work unit plans
PSPGOV408A Value diversity
PSPGOV411A Deal with conflict
PSPGOV412A Use advanced workplace communication strategies
PSPGOV422A Apply government processes
PSPLEGN401A Encourage compliance with legislation in the public sector
PSPPOL404A Support policy implementation
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)
administration of contracts 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 administration
case studies and workplace scenarios to capture the range of contract administration 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 administering contracts, including coping with difficulties, irregularities and breakdowns in routine
administration of contracts 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
portfolios
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 |
|---|---|---|---|
| D3734 | PSPPROC414A | Manage contracts | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| C806 | PSP41304 | Certificate IV in Government (Procurement) | Qualification |