Unit of competency Outline
Date retreived
22/07/2026 9:59 PM AWST
22/07/2026 9:59 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.
Select and prepare a construction contract
Select and prepare a construction contract
Unit of competency
National Code
CPCCBC4003A
CPCCBC4003A
State Code
W9240
W9240
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
20/06/2014
Field of Education
040303 - Building Construction Management
Original Release Date
20/06/2014
Nominal Hours
40
Description
This unit of competency specifies the outcomes required to select and prepare appropriate construction contracts, including the sections, clauses and conditions for low rise construction projects. The ability to interpret complex documents, communicate clearly and succinctly and negotiate is essential skills.
Notes
Elements and Performance Criteria
1. Identify and analyse the essential elements, sections and clauses of a business contract.
- 1.1. Various types of building and construction contracts are identified and the appropriate application of each type is analysed.
- 1.2. Essential terms and elements of a valid contract are identified and analysed.
- 1.3. Importance of identifying an intention to create legal relations is analysed.
- 1.4. Rights and liabilities of parties under a contract are identified and analysed.
- 1.5. Common building contract terms and procedures are identified and applied.
- 1.6. Circumstances that bring about a breach of contract are identified and analysed.
- 1.7. Legislative requirements are identified and applied.
2. Select an appropriate contract for the works to be undertaken.
- 2.1. A contract, appropriate for the type of construction, is accurately selected.
- 2.2. Range of documents that collectively make up a contract is accurately identified and prepared.
- 2.3. Requirements associated with an offer and acceptance of a contract are accurately identified and applied.
- 2.4. Capacity of the parties to form a binding agreement in the form of a contract is confirmed.
- 2.5. Factors associated with the parties' consent to a contract are identified and applied.
3. Prepare the contract.
- 3.1. Expert advice is sought as required in the preparation of the contract.
- 3.2. Factors leading to the termination of a contract are defined, analysed and assessed during the preparation of the contract.
- 3.3. Contract rise and fall amounts are accurately calculated during the preparation of the contract.
- 3.4. Schedule of progress payments is assessed and included in the preparation of the contract.
- 3.5. Processes for applying for extensions of time are included in the preparation of the contract.
- 3.6. Final contract is prepared in consultation with relevant personnel and in accordance with the accepted processes of the organisation and legal requirements.
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.
Building and construction contracts relevant to the sector and organisational needs may include:
Australian standard contracts (including the AS2124 and AS4000 series)
Construction Industry Contract (CIC) suite
contracts required or supplied by regulatory authorities or state or territory legislation
individual organisational contracts
Joint Contracts Committee (JCC) suite
Master Builders Association (MBA) and Housing Industry Association (HIA) or other standard industry contracts
Simple Building Works (SBW), including series 1 and series 2 (SBW2 Lump Sum).
Range of documents includes:
equipment, site accommodation and services information
human resource projections
materials lists
plans, drawings and specifications
project timelines
schedules.
Termination of a contract includes definitions and applications of:
abandonment of a contract
conditions for completion at the cost of the contractor
effect of ousting the contractor from the building or construction
relevant legislation and contract provisions
repudiation of a contract by one party and its agreed definition
unreasonable or vexatious notice.
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.
Building and construction contracts relevant to the sector and organisational needs may include:
Australian standard contracts (including the AS2124 and AS4000 series)
Construction Industry Contract (CIC) suite
contracts required or supplied by regulatory authorities or state or territory legislation
individual organisational contracts
Joint Contracts Committee (JCC) suite
Master Builders Association (MBA) and Housing Industry Association (HIA) or other standard industry contracts
Simple Building Works (SBW), including series 1 and series 2 (SBW2 Lump Sum).
Range of documents includes:
equipment, site accommodation and services information
human resource projections
materials lists
plans, drawings and specifications
project timelines
schedules.
Termination of a contract includes definitions and applications of:
abandonment of a contract
conditions for completion at the cost of the contractor
effect of ousting the contractor from the building or construction
relevant legislation and contract provisions
repudiation of a contract by one party and its agreed definition
unreasonable or vexatious notice.
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
This unit of competency could be assessed by the selection and development of appropriate contracts, which meet organisational and industry standards and relate to low rise building structures.
This unit of competency can be assessed in the workplace or a close simulation of the workplace environment, provided that simulated or project-based assessment techniques fully replicate construction workplace conditions, materials, activities, responsibilities and procedures.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
It is essential that competence is demonstrated in the relevant aspects of contract selection and insertion of appropriate clauses, including rise and fall and progress payments.
A person who demonstrates competency in this unit must be able to provide evidence of the ability to:
select the right contract for the particular project
select appropriate clauses and conditions within the contract
identify causes of a breach of contract
specify requirements for the offer and acceptance of a contract
specify requirements for the termination of a contract
accurately calculate rise and fall amounts
specify schedule for progress payments
specify requirements for extensions of time
include all related documentation
refer to all relevant legislation.
Context of and specific resources for assessment
This competency is to be assessed using standard and authorised work practices, safety requirements and environmental constraints.
Assessment of essential underpinning knowledge will usually be conducted in an off-site context.
Assessment is to comply with relevant regulatory or Australian standards' requirements.
Resource implications for assessment include:
documentation that should normally be available in either a building or construction office
relevant codes, standards and government regulations
office equipment, including calculators, photocopiers and telephone systems
computers with appropriate software to view 2-D CAD drawings, run costing programs and print copies
a technical reference library with current publications on measurement, design, building construction and manufacturer's product literature
a suitable work area appropriate to the construction process.
Reasonable adjustments for people with disabilities must be made to assessment processes where required. This could include access to modified equipment and other physical resources, and the provision of appropriate assessment support.
Method of assessment
Assessment methods must:
satisfy the endorsed Assessment Guidelines of the Construction, Plumbing and Services Training Package
include direct observation of tasks in real or simulated work conditions, with questioning to confirm the ability to consistently identify and correctly interpret the essential underpinning knowledge required for practical application
reinforce the integration of employability skills with workplace tasks and job roles
confirm that competency is verified and able to be transferred to other circumstances and environments.
Validity and sufficiency of evidence requires that:
competency will need to be demonstrated over a period of time reflecting the scope of the role and the practical requirements of the workplace
where the assessment is part of a structured learning experience the evidence collected must relate to a number of performances assessed at different points in time and separated by further learning and practice, with a decision on competency only taken at the point when the assessor has complete confidence in the person's demonstrated ability and applied knowledge
all assessment that is part of a structured learning experience must include a combination of direct, indirect and supplementary evidence.
Assessment processes and techniques should as far as is practical take into account the language, literacy and numeracy capacity of the candidate in relation to the competency being assessed.
Supplementary evidence of competency may be obtained from relevant authenticated documentation from third parties, such as existing supervisors, team leaders or specialist training staff.
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
This unit of competency could be assessed by the selection and development of appropriate contracts, which meet organisational and industry standards and relate to low rise building structures.
This unit of competency can be assessed in the workplace or a close simulation of the workplace environment, provided that simulated or project-based assessment techniques fully replicate construction workplace conditions, materials, activities, responsibilities and procedures.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
It is essential that competence is demonstrated in the relevant aspects of contract selection and insertion of appropriate clauses, including rise and fall and progress payments.
A person who demonstrates competency in this unit must be able to provide evidence of the ability to:
select the right contract for the particular project
select appropriate clauses and conditions within the contract
identify causes of a breach of contract
specify requirements for the offer and acceptance of a contract
specify requirements for the termination of a contract
accurately calculate rise and fall amounts
specify schedule for progress payments
specify requirements for extensions of time
include all related documentation
refer to all relevant legislation.
Context of and specific resources for assessment
This competency is to be assessed using standard and authorised work practices, safety requirements and environmental constraints.
Assessment of essential underpinning knowledge will usually be conducted in an off-site context.
Assessment is to comply with relevant regulatory or Australian standards' requirements.
Resource implications for assessment include:
documentation that should normally be available in either a building or construction office
relevant codes, standards and government regulations
office equipment, including calculators, photocopiers and telephone systems
computers with appropriate software to view 2-D CAD drawings, run costing programs and print copies
a technical reference library with current publications on measurement, design, building construction and manufacturer's product literature
a suitable work area appropriate to the construction process.
Reasonable adjustments for people with disabilities must be made to assessment processes where required. This could include access to modified equipment and other physical resources, and the provision of appropriate assessment support.
Method of assessment
Assessment methods must:
satisfy the endorsed Assessment Guidelines of the Construction, Plumbing and Services Training Package
include direct observation of tasks in real or simulated work conditions, with questioning to confirm the ability to consistently identify and correctly interpret the essential underpinning knowledge required for practical application
reinforce the integration of employability skills with workplace tasks and job roles
confirm that competency is verified and able to be transferred to other circumstances and environments.
Validity and sufficiency of evidence requires that:
competency will need to be demonstrated over a period of time reflecting the scope of the role and the practical requirements of the workplace
where the assessment is part of a structured learning experience the evidence collected must relate to a number of performances assessed at different points in time and separated by further learning and practice, with a decision on competency only taken at the point when the assessor has complete confidence in the person's demonstrated ability and applied knowledge
all assessment that is part of a structured learning experience must include a combination of direct, indirect and supplementary evidence.
Assessment processes and techniques should as far as is practical take into account the language, literacy and numeracy capacity of the candidate in relation to the competency being assessed.
Supplementary evidence of competency may be obtained from relevant authenticated documentation from third parties, such as existing supervisors, team leaders or specialist training staff.
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| W5889 | BCGBC4003A | Select and prepare a construction contract | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| OCQ01 | CPCCBC4003 | Select, prepare and administer a construction contract | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| W605 | CPC40108 | Certificate IV in Building and Construction (Building) | Qualification |
| W741 | CPC50210 | Diploma of Building and Construction (Building) | Qualification |
| W740 | CPC40110 | Certificate IV in Building and Construction (Building) | Qualification |
| W606 | CPC40208 | Certificate IV in Building and Construction (Contract Administration) | Qualification |
| W607 | CPC40308 | Certificate IV in Building and Construction (Estimating) | Qualification |
| W608 | CPC40408 | Certificate IV in Building and Construction (Sales) | Qualification |
| W611 | CPC40708 | Certificate IV in Building and Construction (Trade Contracting) | Qualification |
| BED3 | MSF40318 | Certificate IV in Kitchen and Bathroom Design | Qualification |
| W612 | CPC40808 | Certificate IV in Swimming Pool and Spa Building | Qualification |