Unit of competency Outline

Date retreived
23/07/2026 12:22 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.

Negotiate and monitor contracts

Negotiate and monitor contracts

Unit of competency
National Code
AHCBUS503A
State Code
D6741
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
10/06/2011
View on TGA
State Implementation and Classification
Approved Date
09/10/2014
Field of Education
080321 - Farm Management And Agribusiness
Original Release Date
09/10/2014
Nominal Hours
35
Description
This unit covers the negotiation and monitoring of contracts and defines the standard required to: establish agreements with sources external to the enterprise; complete contract documentation; monitor the performance of contracts.
Notes
Elements and Performance Criteria
1. Establish agreements with sources external to the enterprise
  • 1.1. The enterprise requirements of a business relationship with external sources are identified and defined.
  • 1.2. The ranges of acceptable outcomes from a negotiation are established.
  • 1.3. Contact is made with individuals, bodies or corporations, the appropriate individual is identified, and requirements of an agreement are discussed and mutually acceptable terms agreed.
  • 1.4. Sound practice and procedure for business meetings are maintained and all agreements are documented.
2. Complete contract documentation
  • 2.1. Requirements of the contract are clearly documented and understood by the relevant parties.
  • 2.2. Areas of ambiguity or concern are clarified and resolved.
  • 2.3. Conditions for service or supply are agreed between the parties including the determination of key performance indicators.
  • 2.4. Alternative processes are undertaken where agreement is unable to be reached in accordance with enterprise procedures.
  • 2.5. Negotiations conform to established enterprise requirements and relevant legislation.
  • 2.6. Contract documentation is signed and exchanged between the relevant parties.
3. Monitor the performance of contracts
  • 3.1. The rights and obligations of parties to a contract are identified, and appropriate methods of addressing non-performance are implemented.
  • 3.2. Professional and regulatory bodies available to support commercial grievance processes are identified and consulted when required.
  • 3.3. Completion of contract against key performance indicators is monitored.
  • 3.4. Issues in respect to non-compliance are advised to the other party in writing.
RANGE STATEMENT
The range statement relates to the unit of competency as a whole.
Contract requirements may include:
quality or enterprise work specifications and procedures
manufacturer's specifications and/or supplier's handling and storage advice
workplace operating procedures and policies
supplier and/or client instructions
legal and contract documentation
Materials Safety Data Sheets (MSDSs)
communications technology equipment
personal and work area work procedures and practices
relevant State, Territory and Commonwealth legislative
framework concerning contracts and trade practices
Occupational Health and Safety (OHS) in terms of duties of employers, employees, suppliers and contractors contracts
hazardous substances and dangerous goods
environment protection
equal opportunity
equal employment opportunity
affirmative action standards
certification requirements
license, patent or copyright arrangements
quality assurance procedures
emergency procedures.
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
The evidence required to demonstrate competency in this unit must be relevant to workplace operations and satisfy holistically all of the requirements of the performance criteria and required skills and knowledge and include achievement of the following:
establish agreements with sources external to the enterprise
complete contract documentation
monitor the performance of contracts.
Context of and specific resources for assessment
Competency requires the application of work practices under work conditions. Selection and use of resources for some worksites may differ due to the regional or enterprise circumstances.
Replaces
State Code National Code Title Type
S3580 RTE5920A Negotiate and monitor contracts/commercial agreements Unit of competency
Replaced By
State Code National Code Title Type
BAS51 AHCBUS503 Negotiate and monitor contracts Unit of competency