Unit of competency Outline
Date retreived
22/07/2026 5:30 AM AWST
22/07/2026 5:30 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 contracts
Negotiate contracts
Unit of competency
National Code
BSBPRC402
BSBPRC402
State Code
OAE49
OAE49
TGA Status
Current
Current
DTWD Status
Approved
Approved
State Implementation and Classification
Approved Date
14/02/2019
Field of Education
090901 - Business And Commercial Law
Original Release Date
14/02/2019
Nominal Hours
30
Description
This unit describes the skills and knowledge required to participate in the negotiation of contracts to procure goods and/or services.It applies to individuals who undertake activities such as cost and market analysis, using information to support the planning of negotiations with suppliers to achieve best value. Individuals are required to plan, prepare and undertake effective contract negotiations while demonstrating high levels of personal effectiveness.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication.
Notes
Elements and Performance Criteria
1. Prepare for contract negotiation with suppliers
- 1.1 Prepare for contract negotiation and research supplier organisation information, regulatory constraints and unique category considerations
- 1.2 Undertake market analysis to support contract negotiations and inform negotiation strategy
- 1.3 Seek legal advice on implications for procurement of goods and/ or services that may impact contract negotiations
- 1.4 Identify risks associated with contract negotiations
2. Establish negotiation processes
- 2.1 Determine the objectives and establish strategies for contract negotiation meeting
- 2.2 Establish resourcing requirements with organisation stakeholders
- 2.3 Access legal expertise to determine the legal requirements for the organisation and ensure they are compliant
- 2.4 Recognise the use and the content of contractual terms for procured goods and/ or services
3. Undertake contract negotiation
- 3.1 Establish the bargaining position with stakeholders to determine strength and weaknesses of organisational procurement capability
- 3.2 Define and evaluate the attributes of a good negotiator and apply them to effective negotiations
- 3.3 Employ a range of persuasive techniques and tactics to navigate difficult circumstances and achieve desired contract outcome
- 3.4 Use verbal and non-verbal communications in negotiation situations including reducing the potential for conflict
4. Finalise contracts
- 3.1 Ensure contracts are signed and exchanged between the organisation and suppliers
- 3.2 Develop and discuss the legalities and commercial considerations linked to the contract in accordance with organisational requirements
- 3.3 Ensure contracts and related documents are stored and safeguarded
- 3.4 Advise relevant stakeholders of contract requirements
- 3.5 Advise unsuccessful suppliers of non-acceptance of offers
No information
No information
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUI18 | BSBPUR402 | Negotiate contracts | Unit of competency |