Unit of competency Outline

Date retreived
22/07/2026 7:50 PM AWST

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Negotiate contracts

Negotiate contracts

Unit of competency
National Code
BSBPUR402B
State Code
D0959
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
10/03/2009
View on TGA
State Implementation and Classification
Approved Date
24/10/2014
Field of Education
090901 - Business And Commercial Law
Original Release Date
24/10/2014
Nominal Hours
30
Description
This unit specifies the outcomes required to negotiate terms of contracts with suppliers, and prepare and finalise contracts.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Negotiate terms of contracts with suppliers
  • 1.1. Offer advice and undertake negotiations without prejudice
  • 1.2. Advise suppliers of the organisation's intent to accept their offers
  • 1.3. Negotiate issues with suppliers
  • 1.4. Determine desired outcomes, negotiation plans and schedules for negotiations
  • 1.5. Undertake negotiations and reach agreements with suppliers in accordance with plans
  • 1.6. Negotiate and document contract requirements to the satisfaction of the organisation and suppliers
2. Prepare contracts
  • 2.1. Draft required contracts using legal expertise if required
  • 2.2. Distribute draft contracts to relevant personnel and suppliers
  • 2.3. Ensure any discrepancies or disagreements are clarified and resolved to the satisfaction of all parties
  • 2.4. Ensure checks of the legality and validity of draft contracts are made
  • 2.5. Obtain approvals to sign contracts
3. Finalise contracts
  • 3.1. Ensure contracts are signed and exchanged between the organisation and suppliers
  • 3.2. Ensure contracts and related documents are stored and safeguarded
  • 3.3. Advise relevant personnel of contract requirements
  • 3.4. Advise unsuccessful suppliers of non-acceptance of offers
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.
Issues may include:
issues relating to non-compliance with invitation to offer requirements
issues relating to occupational health and safety (OHS) performance standards
issues relating to the form and specific requirements of contract documentation
Contracts may include:
agreements for one-off or ongoing supply of goods or services
agreements with Australian or overseas individuals, contractors, corporations, individuals and government agencies
electronic or paper-based agreements
memoranda of understanding/agreement
Relevant personnel may include:
CEO
managers
leaders
coordinators
OHS specialists
supervisors
other persons authorised to commit the organisation to purchases
internal users of purchased goods and services
owner
Board
specialist personnel involved in purchasing, asset maintenance and finance
Checks may include:
referring the contract to others such as:
external legal representative for organisation
legal officer within organisation
purchasing manager
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 following is essential:
documented agreement of terms with suppliers
drafting and completion of a contract with a supplier for goods and services
informing of successful and unsuccessful suppliers.
Context of and specific resources for assessment
Assessment must ensure:
access to an actual workplace or simulated environment
access to office equipment and resources
organisation's purchasing strategies and relevant purchasing records.
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:
analysis of responses to case studies and scenarios
assessment of draft and finalised contracts for the supply of goods and services
direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
observation of contacting successful and unsuccessful suppliers about the awarding of the contract
oral or written questioning to assess knowledge
review testimony from team members, colleagues, supervisors or managers
review of authenticated documents from the workplace or training environment.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
other purchasing units.
Replaces
State Code National Code Title Type
C7078 BSBPUR402A Negotiate contracts Unit of competency
Replaced By
State Code National Code Title Type
AUI18 BSBPUR402 Negotiate contracts Unit of competency