Unit of competency Outline
Date retreived
23/07/2026 1:33 PM AWST
23/07/2026 1:33 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.
Manage contract performance
Manage contract performance
Unit of competency
National Code
PSPPROC503A
PSPPROC503A
State Code
C8257
C8257
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 implementation of strategies that ensure effective contract performance 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 managing of the business relationship, managing performance of the contract, managing contract issues, and implementing a communication/information strategy. In practice, managing contract performance 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 etc.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Manage contract riskPSPPROC502A Establish contract management arrangements PSPPROC504A Finalise contractsThe superseded unit PSPPROC404A Manage contracts is equivalent to the three units:PSPPROC502A Establish contract management arrangements + PSPPROC503A Manage contract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 Manage the business relationship
- 1.1 Probity is managed in accordance with organisational requirements, legislation, policy and public sector standards
- 1.2 Obligations to the contractor are met in accordance with contractual arrangements
- 1.3 Consideration of conflicts of interest and their resolution are recorded in accordance with public sector standards and organisational requirements
- 1.4 Relationship with contractor is managed through formal and informal mechanisms in accordance with organisational policy and procedures
- 1.5 Business relationship is managed in the public interest in accordance with public sector standards and organisational requirements
2 Manage performance of the contract
- 2.1 Start-up or transition arrangements are implemented in accordance with contract requirements and organisational procedures
- 2.2 Contract management plan is monitored for effectiveness on a regular basis and adapted as necessary during the life of the contract
- 2.3 Performance of the contract is monitored against key performance indicators and tracking milestones to ensure all obligations under the agreement are being met
- 2.4 E-procurement, financial and other resources are managed as necessary in accordance with contractual requirements and organisational procedures
- 2.5 Emerging and potential risks are identified and managed in accordance with organisational risk management procedures
3 Manage contract issues
- 3.1 Contract variations are managed in accordance with the contract management plan and organisational policy and procedures
- 3.2 Early signs of under-performance are identified and action is taken to improve performance to the agreed level and is documented in accordance with the contract communication/information policy
- 3.3 Disputes/complaints are investigated and resolved or referred in accordance with contract management plan and contractual arrangements
- 3.4 Negotiation of issues relating to the contract is conducted and approvals are obtained in accordance with stipulations in the contract
- 3.5 Conflict is addressed and resolved where possible or other actions are taken in accordance with contractual arrangements
4 Implement communication/information strategy
- 4.1 Communication on the performance of the contract is maintained with all stakeholders in accordance with organisational protocols and public sector standards
- 4.2 Management reporting is carried out in accordance with tracking milestones and organisational requirements
- 4.3 Contract information is maintained for organisational purposes in accordance with organisational policy and procedures
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.
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
Legislation, policy and standards may include
financial management legislation
government procurement/purchasing/contracting legislation, policy and guidelines
public sector standards
ethics standards
codes of conduct/ethics
cross-cultural and social justice issues
environmental purchasing
Formal and informal mechanisms may include
non-confrontational interaction
hospitality
formal contract variations
formal negotiations
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
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
standing offers
Risks might include
suppliers' inability to meet agreements
end users' or buyers' inability to meet obligations
limited number of suppliers
client considerations not fully understood
options for people with limited language/literacy skills
implications if dependence on one supplier is enshrined versus risks in lack of continuity and consistency in services provided
other environmental influences
Variation to agreements may include arise from
change of scope
negotiation of new terms and conditions
dissolution of contracts
inability to deliver
Early signs of under-performance may be detected through
tracking milestones
regular meetings
meeting records and follow-ups
file management - audit trail
stakeholder surveys on performance
ongoing review of deliverables
Actions to improve performance may include
discussion with contractor
regular interaction
ongoing performance feedback
expert advice
Disputes may include
disputes over:
requirements
delivery schedules
price changes
additional tasking
payment schedules
complaints from third parties
formal versus informal eg unethical versus criminal behaviour
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
Actions (as a result of unresolved conflict) may include
mediation
court action
termination of contract
Effective communication strategies may include
clear communication
understanding the needs of the service provider and the client
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
Organisational purposes may include
probity
governance requirements
relevant details extracted, collated and arranged in a format for reports and other documents
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.
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
Legislation, policy and standards may include
financial management legislation
government procurement/purchasing/contracting legislation, policy and guidelines
public sector standards
ethics standards
codes of conduct/ethics
cross-cultural and social justice issues
environmental purchasing
Formal and informal mechanisms may include
non-confrontational interaction
hospitality
formal contract variations
formal negotiations
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
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
standing offers
Risks might include
suppliers' inability to meet agreements
end users' or buyers' inability to meet obligations
limited number of suppliers
client considerations not fully understood
options for people with limited language/literacy skills
implications if dependence on one supplier is enshrined versus risks in lack of continuity and consistency in services provided
other environmental influences
Variation to agreements may include arise from
change of scope
negotiation of new terms and conditions
dissolution of contracts
inability to deliver
Early signs of under-performance may be detected through
tracking milestones
regular meetings
meeting records and follow-ups
file management - audit trail
stakeholder surveys on performance
ongoing review of deliverables
Actions to improve performance may include
discussion with contractor
regular interaction
ongoing performance feedback
expert advice
Disputes may include
disputes over:
requirements
delivery schedules
price changes
additional tasking
payment schedules
complaints from third parties
formal versus informal eg unethical versus criminal behaviour
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
Actions (as a result of unresolved conflict) may include
mediation
court action
termination of contract
Effective communication strategies may include
clear communication
understanding the needs of the service provider and the client
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
Organisational purposes may include
probity
governance requirements
relevant details extracted, collated and arranged in a format for reports and other documents
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
PSPPROC502A Establish contract management arrangements
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)
management of contract performance 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 managing contract performance, including coping with difficulties, irregularities and breakdowns in routine
management of contract performance 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:
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
PSPPROC502A Establish contract management arrangements
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)
management of contract performance 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 managing contract performance, including coping with difficulties, irregularities and breakdowns in routine
management of contract performance 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 |
|---|---|---|---|
| D3737 | PSPPROC503B | Manage contract performance | Unit of competency |
