Unit of competency Outline

Date retreived
23/07/2026 12:46 AM AWST

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Select, prepare and administer a construction contract

Select, prepare and administer a construction contract

Unit of competency
National Code
CPCCBC4003
State Code
OCQ01
TGA Status
Current
DTWD Status
Approved
Current Release Number
4.00
Current Release Date
24/12/2024
View on TGA
State Implementation and Classification
Approved Date
01/06/2021
Field of Education
040303 - Building Construction Management
Original Release Date
01/06/2021
Nominal Hours
45
Description
This unit of competency specifies the skills and knowledge required to select, prepare and administer contracts for commercial and residential construction projects. It includes contract selection, administration of a range of documents related to the contract and identifying causes of breach of contract. It applies to National Construction Code (NCC) classifications: Residential - Class 1 and 10 buildings, maximum two storeys Commercial - Class 2 to 9, Type C only constructions.It applies to builders, estimators and project and site managers who interpret complex documents and communicate clearly and succinctly during contract negotiations.This unit of competency is suitable for people operating with autonomy. A person working at this level would be expected to take responsibility for selecting and preparing construction contracts.Completion of the general construction induction training program specified by the model Code of Practice for Construction Work is required for any person who is to carry out construction work. Achievement of CPCWHS1001 Prepare to work safely in the construction industry meets this requirement.Licensing, regulatory or registration requirements apply to this unit of competency in some jurisdictions. Relevant state and territory regulatory authorities should be consulted to confirm these requirements.
Notes
Elements and Performance Criteria
1 Identify and analyse business contracts.
  • 1.1 Recognise various types of building and construction contracts, their legal requirements and application.
  • 1.2 Analyse the importance of the intention to create legal relations.
  • 1.3 Read and interpret essential contract elements, terms, sections and clauses of a valid construction contract.
  • 1.4 Evaluate rights, obligations and liabilities of all parties.
  • 1.5 Identify and analyse circumstances that constitute a breach of contract.
  • 1.6 Identify factors involved in the termination of contracts.
  • 1.7 Identify legislative requirements and procedures.
2 Select appropriate contract.
  • 2.1 Communicate clearly and directly with all parties to confirm the capacity to form a binding agreement.
  • 2.2 Prepare and compile the range of documents that collectively make up the contract.
  • 2.3 Establish factors and special conditions associated with the parties’ consent to a contract.
  • 2.4 Recognise and apply the requirements associated with an offer and acceptance of a contract.
  • 2.5 Select a contract appropriate to the type of construction.
3 Prepare the contract.
  • 3.1 Prepare selected contract draft with relevant details, in consultation with relevant personnel and in accordance with the accepted processes of the organisation and legal requirements.
  • 3.2 Assess and schedule progress payments, including processes for applying for extension of time.
  • 3.3 Ensure any discrepancies or disagreements are resolved prior to contract preparation.
  • 3.4 Ensure legality and validity of draft contract in consultation with relevant persons.
  • 3.5 Prepare final contract in accordance with the organisation’s legal process.
4 Administer the contract.
  • 4.1 Process progress payments accurately as due under the contract.
  • 4.2 Process applications for extension of time in accordance with organisational policies and contract conditions.
  • 4.3 Identify, negotiate and document variations to contract.
  • 4.4 Act to minimise liquidated damages or penalties nominated in the contract.
  • 4.5 Administer contract and resolve contractual disputes in accordance with contract and relevant legislation and regulations.
  • 4.6 Assess conditions for issuing a final certificate.
5 Finalise a contract.
  • 5.1 Apply process for practical completion of contract.
  • 5.2 Finalise defects liability under a building or construction contract.
  • 5.3 Finalise contract in accordance with relevant legislation and contract provisions.
  • 5.4 Issue appropriate certificate upon completion of the contract work.
  • 5.5 Complete and secure documentation arising from finalisation of a contract for records purposes.
No information
No information
Replaces
State Code National Code Title Type
W9253 CPCCBC4016A Administer a construction contract Unit of competency
W9240 CPCCBC4003A Select and prepare a construction contract Unit of competency