Unit of competency Outline

Date retreived
22/07/2026 6:16 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.

Set up and operate a contractor business

Set up and operate a contractor business

Unit of competency
National Code
ICTSMB4160A
State Code
D3417
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
15/06/2010
State Implementation and Classification
Approved Date
15/04/2014
Field of Education
080301 - Business Management
Original Release Date
15/04/2014
Nominal Hours
40
Description
This unit describes the performance outcomes, skills and knowledge required to operate a small scale contractor operation involving an owner operator and employees installing telecommunications services.Specific legal requirements apply to small business. Requirements should be confirmed with the relevant federal, state or territory authority.
Notes
Elements and Performance Criteria
1. Set up a business operation
  • 1.1. Develop a business plan for a small business operation according to business planning guidelines
  • 1.2. Follow the statutory and legal requirements to register a business
  • 1.3. Ensure adequate business insurance policies are held according to business plan and to mitigate risks
  • 1.4. Provide and maintain a vehicle through purchase, lease or hiring purchase, including managing fringe benefits tax (FBT) liabilities according to business plan
2. Provide customer service
  • 2.1. Determine and maintain a customer base to support the business plan
  • 2.2. Analyse and determine customer expectations in relation to industry standards
  • 2.3. Provide customer service that meets customer expectations according to enterprise standards
  • 2.4. Monitor and evaluate performance on installations completed against industry standards
3. Perform simple financial management tasks
  • 3.1. Record income and expenditure using bookkeeping tools and software according to normal accounting standards
  • 3.2. Construct a simple financial balance sheet using banking records or supply information to accountant according to normal accounting standards
  • 3.3. Calculate simple taxation and superannuation requirements or supply information to accountant according to normal accounting standards
  • 3.4. Complete a Business Activity Statement (BAS) or supply data to accountant according to normal accounting standards
4. Cost and quote an installation
  • 4.1. Establish the extent of work to be completed through professional and personable discussions with customer
  • 4.2. Complete a job specification for the quote with cost estimates of time required to complete work
  • 4.3. Estimate and include cost of materials to be used using supplier quoted prices
  • 4.4. Determine and include a margin for profit and ongoing costs for installation according to business plan
  • 4.5. Check finalised quote for accuracy according to established policies and procedures
  • 4.6. Submit quote to customer within agreed timeframe
RANGE STATEMENT
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.
Business plan may include:
capital investment
cash flow projection
costing for labour
margins for materials
objectives
personnel
products
profit margins
statement of vision or mission
values.
Business may include:
company
partnership
sole trader.
Business insurance may include:
equipment
income protection
professional indemnity
public liability
vehicle
workers compensation.
Business planning guidelines may include:
customer enterprise guidelines
guidelines provided by the Australian Government Initiatives project titled 'business.gov.au'
Provide and maintain a vehicle may include:
fitting out for business operations
garaging
organising payments
registration
servicing and maintenance.
Customer may include:
companies
external
individuals
internal
small businesses.
Quote may include:
detailed costing
job description of work to be undertaken
single price
statement of costs for work.
Margin for profit and ongoing costs may be:
ongoing costs:
accounting
insurances
registration
tools
vehicle
set in the business plan
set on a job-by-job basis.
EVIDENCE GUIDE
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

Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
produce a business plan and set up a business
define and meet customer needs
perform simple financial management tasks including completing BAS, FBT and insurance documentation
quote for installation jobs that cover all aspects of costing.
Context of and specific resources for assessment
Assessment must ensure:
resources:
Australian Taxation Office (ATO) guides
financial management record keeping software
access to industry standard labour rates and material suppliers
general office bookkeeping procedures
customer service guides.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
direct observation of the candidate performing business tasks
review of business plans, records and quotes prepared by the candidate
oral or written questioning on required knowledge and skills.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
ICTSMB4161A Operate a contractor business with employees.

Aboriginal people and other people from a non-English speaking background may have second language issues.

Access must be provided to appropriate learning and assessment support when required.

Assessment processes and techniques must be culturally appropriate, and appropriate to the oral communication skill level, and language and literacy capacity of the candidate and the work being performed.

In all cases where practical assessment is used it will be combined with targeted questioning to assess required knowledge. Questioning techniques should not require language, literacy and numeracy skills beyond those required in this unit of competency.

Where applicable, physical resources should include equipment modified for people with special needs.
Replaced By
State Code National Code Title Type
AWD81 ICTSMB401 Set up and operate a contractor business Unit of competency