Unit of competency Outline

Date retreived
21/07/2026 11:31 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.

Apply contract law to sales processes

Apply contract law to sales processes

Unit of competency
National Code
CPCCBC4032A
State Code
W9269
TGA Status
Replaced
DTWD Status
Transition (Replaced)
Current Release Number
1.00
Current Release Date
19/05/2011
State Implementation and Classification
Approved Date
20/06/2014
Field of Education
080501 - Sales
Original Release Date
20/06/2014
Nominal Hours
20
Description
This unit of competency specifies the outcomes required to apply contract law to the sales process, for either residential or commercial construction. Knowledge of contract selection, pre-contract agreements, preliminary contracts, insertion of appropriate clauses and the inclusion of the contract in the sales process is essential.
Notes
Elements and Performance Criteria
1. Apply contract law as it relates to the sales process.
  • 1.1. Contract law is applied according to relevant federal and state legislation and common law principles, including the law of contract, offer and acceptance.
  • 1.2. Importance of contract to sales process and implications of contract law are explained to client.
  • 1.3. Types and purpose of contracts employed within the industry and are explained to the client.
  • 1.4. Clauses in the contract are described to the client and the reasons for inclusion and impact are explained.
  • 1.5. Appropriate measures to be taken in the event of an anomaly in the rendering of the contract are determined and explained to the client.
2. Identify other legislative requirements applying to the sales process.
  • 2.1. Contracts are negotiated in accordance with other federal, state or territory laws, regulations and codes, including the Trade Practices and Fair Trading Acts and regulations.
  • 2.2. Cooling off periods, definitions of building work and provisional sum (PS) and prime cost (PC) allowances are applied.
3. Identify and apply types of pre-contract agreements.
  • 3.1. Identify pre-contract agreements that meet legal and organisational requirements.
  • 3.2. Pre-contract clauses are discussed and agreed with the client.
  • 3.3. Apply correct pre-contract agreements.
4. Finalise the pre-contract agreement with customer.
  • 4.1. Clauses that reflect client's requirements are included in pre-contract agreement.
  • 4.2. Documents are signed in accordance with legal and organisational requirements.
  • 4.3. Payment or deposit is received from client in accordance with legal and contractual requirements.
  • 4.4. Documents are processed according to organisational policy.
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.
Contract law includes:
Builders Registration Acts in various States and Territories
common law
federal and state legislation, such as:
Home Building Contracts Act 1991 in Western Australia
Home Building Act and Regulations 1989 in New South Wales.
Clauses in the contract include:
cost adjustments
extensions of time
offers and acceptances
payments
retention of moneys
scope of work
terms and representations.
Other federal, state or territory laws, regulations and codes include:
common law
Commonwealth Trade Practices Act
consumer credit codes in each State and Territory
Fair Trading Act 1987 in Western Australia.
Pre-contract agreements include:
offer and acceptance documentation
preliminary contracts
preparation of plan agreements.
Pre-contract clauses include:
conditions
scope of work
time for completion.
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 effective application of contract law to a building sale contract.
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
A person who demonstrates competency in this unit must be able to provide evidence of the ability to:
explain importance of contract in the sales process to the client and how contract is applied
select right contract for particular project and explain reasons for that choice
select appropriate clauses and conditions within contract and explain impact of those clauses
administer contract to standard required by the organisation and within any legal or regulatory requirements that may exist within the state or territory in which the work is being done
determine and explain appropriate measures to be taken in the event of an anomaly in rendering contract.
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 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
technical reference library with current publications on measurement, design, building construction and manufacturers' product literature
suitable sales 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.
Replaced By
State Code National Code Title Type
OCM95 CPCCBC4032 Apply contract law to sales processes Unit of competency