Unit of competency Outline
Date retreived
22/07/2026 3:08 PM AWST
22/07/2026 3:08 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.
Direct the management of contracts
Direct the management of contracts
Unit of competency
National Code
PSPPROC602A
PSPPROC602A
State Code
C3458
C3458
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
18/05/2004
Field of Education
090901 - Business And Commercial Law
Original Release Date
18/05/2004
Nominal Hours
50
Description
This unit covers strategic management of contracts to effectively minimise risks and achieve value for money to meet an organisation's core objectives.This unit covers strategic management of contracts to effectively minimise risks and achieve value for money to meet an organisation's core objectives
Notes
Elements and Performance Criteria
1 Manage the transition to a new contract
- 1.1 The requirements of the contract are discussed, clarified, and agreed by all parties
- 1.2 Responsibilities for establishing and carrying out procedures are assigned to achieve contract outcomes
- 1.3 Transition arrangements are confirmed and implemented
- 1.4 Effective communication strategies and processes are established and implemented to assist ongoing communication between stakeholders and suppliers
- 1.5 Effective performance measures are established
- 1.6 Risk management plan is updated in accordance with organisational policy and procedures
2 Manage the performance of the contract
- 2.1 Progress of the contract is monitored against set targets and performance measures to ensure success of the procurement activity
- 2.2 Should monitoring find that set targets and performance measures are not being met, action is taken to rectify performance in a timely manner
- 2.3 Advice and support are provided to solve problems, make improvements and maintain progress
- 2.4 Opportunities to improve procurement outcomes are sought and negotiated with suppliers
- 2.5 Any contract variation is negotiated in accordance with the terms of the contract and organisational policy and procedures
- 2.6 Contract variations agreed between the parties are documented and approvals gained
- 2.7 Opportunities are provided for stakeholders and suppliers to have input to and receive feedback on progress during the performance of the contract
3 Manage the evaluation of the contract
- 3.1 Evaluation of contract performance is undertaken relative to planned performance measures and in consultation with stakeholders and suppliers
- 3.2 Conclusions are detailed against agreed criteria and provide a complete picture of performance of the supplier, the organisation's procurement processes and value for money
- 3.3 Evaluation outcomes are documented in accordance with organisational requirements to assist improvement in future procurement activities
- 3.4 Suppliers and stakeholders are advised of evaluation outcomes in a timely manner in accordance with organisational guidelines
The Range of Variables provides information about the context in which the unit of competency is carried out. It allows for differences between States and Territories and the Commonwealth, and between organisations and workplaces. It allows for different work requirements, work practices, and knowledge. The Range of Variables also provides a focus for assessment and relates to the unit as a whole.
Stakeholders may include:
end users, customers or clients and sponsors
potential providers or suppliers
current providers/suppliers
technical or functional experts or advisers
federal, state/territory and/or local government
the organisation
other public sector organisations
employees
unions or staff associations
industry bodies
local communities and society as a whole
lobby groups, special user groups
Monitoring may involve:
progress meetings
visits to the supplier's premises
provision of samples
regular progress reports from the supplier
independent audit
end user feedback
Evaluation of supplier performance may include:
strengths and weaknesses
client acceptance of service delivery (client satisfaction)
achievements in meeting delivery and completion dates
compliance with other contractual requirements
performance in relation to relevant policy objectives such as industry development, care for the environment, occupational health and safety, and affirmative action
achievement of the supplier in developing Australian and New Zealand supply networks
general relationships including effectiveness of communication at all levels
performance of key technical personnel
acceptability and cost of whole of life technical support including lead times and availability of spares and maintenance services
achievements in innovation and quality improvement programs
acceptability and suitability for future agreements including potential status as an approved supplier
Evaluation of the organisation's procurement processes may focus on:
effectiveness of project management including the project plan and the responsibilities and accountabilities set out in it
quality of the business case, as indicated by the achievement of planned outcome and the contribution to program objectives
effectiveness of supplier qualification processes
value obtained in bid clarification and post-tender negotiation
effectiveness of project management systems focusing particularly on management information
effectiveness of risk management
methods for controlling variations in cost, time, quality and performance from the initial planning to completion
adequacy of safeguards against fraud, error and impropriety
incidence of material losses due to waste or inefficiency
overall performance in terms of cost, time, service and quality
Contract variation may include:
modification of targets, performance measures, procurement plans, resourcing, monitoring and evaluation processes
Value for money must reflect:
whole of life program benefits
residual values
costs of parts
servicing and maintenance
industry benchmarks
The Range of Variables provides information about the context in which the unit of competency is carried out. It allows for differences between States and Territories and the Commonwealth, and between organisations and workplaces. It allows for different work requirements, work practices, and knowledge. The Range of Variables also provides a focus for assessment and relates to the unit as a whole.
Stakeholders may include:
end users, customers or clients and sponsors
potential providers or suppliers
current providers/suppliers
technical or functional experts or advisers
federal, state/territory and/or local government
the organisation
other public sector organisations
employees
unions or staff associations
industry bodies
local communities and society as a whole
lobby groups, special user groups
Monitoring may involve:
progress meetings
visits to the supplier's premises
provision of samples
regular progress reports from the supplier
independent audit
end user feedback
Evaluation of supplier performance may include:
strengths and weaknesses
client acceptance of service delivery (client satisfaction)
achievements in meeting delivery and completion dates
compliance with other contractual requirements
performance in relation to relevant policy objectives such as industry development, care for the environment, occupational health and safety, and affirmative action
achievement of the supplier in developing Australian and New Zealand supply networks
general relationships including effectiveness of communication at all levels
performance of key technical personnel
acceptability and cost of whole of life technical support including lead times and availability of spares and maintenance services
achievements in innovation and quality improvement programs
acceptability and suitability for future agreements including potential status as an approved supplier
Evaluation of the organisation's procurement processes may focus on:
effectiveness of project management including the project plan and the responsibilities and accountabilities set out in it
quality of the business case, as indicated by the achievement of planned outcome and the contribution to program objectives
effectiveness of supplier qualification processes
value obtained in bid clarification and post-tender negotiation
effectiveness of project management systems focusing particularly on management information
effectiveness of risk management
methods for controlling variations in cost, time, quality and performance from the initial planning to completion
adequacy of safeguards against fraud, error and impropriety
incidence of material losses due to waste or inefficiency
overall performance in terms of cost, time, service and quality
Contract variation may include:
modification of targets, performance measures, procurement plans, resourcing, monitoring and evaluation processes
Value for money must reflect:
whole of life program benefits
residual values
costs of parts
servicing and maintenance
industry benchmarks
Stakeholders may include:
end users, customers or clients and sponsors
potential providers or suppliers
current providers/suppliers
technical or functional experts or advisers
federal, state/territory and/or local government
the organisation
other public sector organisations
employees
unions or staff associations
industry bodies
local communities and society as a whole
lobby groups, special user groups
Monitoring may involve:
progress meetings
visits to the supplier's premises
provision of samples
regular progress reports from the supplier
independent audit
end user feedback
Evaluation of supplier performance may include:
strengths and weaknesses
client acceptance of service delivery (client satisfaction)
achievements in meeting delivery and completion dates
compliance with other contractual requirements
performance in relation to relevant policy objectives such as industry development, care for the environment, occupational health and safety, and affirmative action
achievement of the supplier in developing Australian and New Zealand supply networks
general relationships including effectiveness of communication at all levels
performance of key technical personnel
acceptability and cost of whole of life technical support including lead times and availability of spares and maintenance services
achievements in innovation and quality improvement programs
acceptability and suitability for future agreements including potential status as an approved supplier
Evaluation of the organisation's procurement processes may focus on:
effectiveness of project management including the project plan and the responsibilities and accountabilities set out in it
quality of the business case, as indicated by the achievement of planned outcome and the contribution to program objectives
effectiveness of supplier qualification processes
value obtained in bid clarification and post-tender negotiation
effectiveness of project management systems focusing particularly on management information
effectiveness of risk management
methods for controlling variations in cost, time, quality and performance from the initial planning to completion
adequacy of safeguards against fraud, error and impropriety
incidence of material losses due to waste or inefficiency
overall performance in terms of cost, time, service and quality
Contract variation may include:
modification of targets, performance measures, procurement plans, resourcing, monitoring and evaluation processes
Value for money must reflect:
whole of life program benefits
residual values
costs of parts
servicing and maintenance
industry benchmarks
The Range of Variables provides information about the context in which the unit of competency is carried out. It allows for differences between States and Territories and the Commonwealth, and between organisations and workplaces. It allows for different work requirements, work practices, and knowledge. The Range of Variables also provides a focus for assessment and relates to the unit as a whole.
Stakeholders may include:
end users, customers or clients and sponsors
potential providers or suppliers
current providers/suppliers
technical or functional experts or advisers
federal, state/territory and/or local government
the organisation
other public sector organisations
employees
unions or staff associations
industry bodies
local communities and society as a whole
lobby groups, special user groups
Monitoring may involve:
progress meetings
visits to the supplier's premises
provision of samples
regular progress reports from the supplier
independent audit
end user feedback
Evaluation of supplier performance may include:
strengths and weaknesses
client acceptance of service delivery (client satisfaction)
achievements in meeting delivery and completion dates
compliance with other contractual requirements
performance in relation to relevant policy objectives such as industry development, care for the environment, occupational health and safety, and affirmative action
achievement of the supplier in developing Australian and New Zealand supply networks
general relationships including effectiveness of communication at all levels
performance of key technical personnel
acceptability and cost of whole of life technical support including lead times and availability of spares and maintenance services
achievements in innovation and quality improvement programs
acceptability and suitability for future agreements including potential status as an approved supplier
Evaluation of the organisation's procurement processes may focus on:
effectiveness of project management including the project plan and the responsibilities and accountabilities set out in it
quality of the business case, as indicated by the achievement of planned outcome and the contribution to program objectives
effectiveness of supplier qualification processes
value obtained in bid clarification and post-tender negotiation
effectiveness of project management systems focusing particularly on management information
effectiveness of risk management
methods for controlling variations in cost, time, quality and performance from the initial planning to completion
adequacy of safeguards against fraud, error and impropriety
incidence of material losses due to waste or inefficiency
overall performance in terms of cost, time, service and quality
Contract variation may include:
modification of targets, performance measures, procurement plans, resourcing, monitoring and evaluation processes
Value for money must reflect:
whole of life program benefits
residual values
costs of parts
servicing and maintenance
industry benchmarks
This Evidence Guide must be read in conjunction with the Assessment Guidelines for the National Public Services Training Package.
Critical aspects of evidence
integrated demonstration of all elements and their related performance criteria; and
transition, performance and evaluation of contracts
relevant legislation and procedures applied to the procurement process
Interdependent assessment of units
Pre-requisite units: Nil
Co-requisite units: Nil
Co-assessed units: This unit may be co-assessed with any of the generalist public sector specific units at Diploma level or above. It is recommended that co-assessment occurs with some or all of the following units: PSPETHC501A Promote the Values and Ethos of Public Service; PSPLEGN501A Promote Compliance with Legislation in the Public Sector; PSPPOLI501A Manage Policy Implementation; PSPGOV501A Apply Knowledge of Government Systems; and PSPMNGT605A Manage Diversity
Underpinning knowledge
Commonwealth, State/Territory, Local Government procurement guidelines
procurement policies and practices
government procurement environment
financial rules and regulation requirements
legal requirements of government contracting
implications of particular contracting agreements
whole-of-life considerations
disposals considerations
procurement approval processes
strategic planning processes
procurement management processes
Law of contract
Trade practices law
Commercial law and relevant legislation
equal employment opportunity, equity and diversity principles
financial and accounting issues relevant to the contract
Underpinning skills
project management skills
financial and other resources management skills
communication skills, orally and in writing
cross-cultural competency, including gender and disability
research skills
analytical skills
problem solving using conceptual and reasoning skills
networking skills with clients, suppliers, stakeholders and end users
Resource implications
assessment may involve reports from supervisors and/or managers, reports from team members and references from clients
Consistency of performance
evidence to be gathered over time across a range of variables
Context/s of assessment
this competency may be assessed on-the-job or in a simulated work environment; holistic assessment; assessment by way of documented information and/or examples of personal work
This Evidence Guide must be read in conjunction with the Assessment Guidelines for the National Public Services Training Package.
Critical aspects of evidence
integrated demonstration of all elements and their related performance criteria; and
transition, performance and evaluation of contracts
relevant legislation and procedures applied to the procurement process
Interdependent assessment of units
Pre-requisite units: Nil
Co-requisite units: Nil
Co-assessed units: This unit may be co-assessed with any of the generalist public sector specific units at Diploma level or above. It is recommended that co-assessment occurs with some or all of the following units: PSPETHC501A Promote the Values and Ethos of Public Service; PSPLEGN501A Promote Compliance with Legislation in the Public Sector; PSPPOLI501A Manage Policy Implementation; PSPGOV501A Apply Knowledge of Government Systems; and PSPMNGT605A Manage Diversity
Underpinning knowledge
Commonwealth, State/Territory, Local Government procurement guidelines
procurement policies and practices
government procurement environment
financial rules and regulation requirements
legal requirements of government contracting
implications of particular contracting agreements
whole-of-life considerations
disposals considerations
procurement approval processes
strategic planning processes
procurement management processes
Law of contract
Trade practices law
Commercial law and relevant legislation
equal employment opportunity, equity and diversity principles
financial and accounting issues relevant to the contract
Underpinning skills
project management skills
financial and other resources management skills
communication skills, orally and in writing
cross-cultural competency, including gender and disability
research skills
analytical skills
problem solving using conceptual and reasoning skills
networking skills with clients, suppliers, stakeholders and end users
Resource implications
assessment may involve reports from supervisors and/or managers, reports from team members and references from clients
Consistency of performance
evidence to be gathered over time across a range of variables
Context/s of assessment
this competency may be assessed on-the-job or in a simulated work environment; holistic assessment; assessment by way of documented information and/or examples of personal work
Critical aspects of evidence
integrated demonstration of all elements and their related performance criteria; and
transition, performance and evaluation of contracts
relevant legislation and procedures applied to the procurement process
Interdependent assessment of units
Pre-requisite units: Nil
Co-requisite units: Nil
Co-assessed units: This unit may be co-assessed with any of the generalist public sector specific units at Diploma level or above. It is recommended that co-assessment occurs with some or all of the following units: PSPETHC501A Promote the Values and Ethos of Public Service; PSPLEGN501A Promote Compliance with Legislation in the Public Sector; PSPPOLI501A Manage Policy Implementation; PSPGOV501A Apply Knowledge of Government Systems; and PSPMNGT605A Manage Diversity
Underpinning knowledge
Commonwealth, State/Territory, Local Government procurement guidelines
procurement policies and practices
government procurement environment
financial rules and regulation requirements
legal requirements of government contracting
implications of particular contracting agreements
whole-of-life considerations
disposals considerations
procurement approval processes
strategic planning processes
procurement management processes
Law of contract
Trade practices law
Commercial law and relevant legislation
equal employment opportunity, equity and diversity principles
financial and accounting issues relevant to the contract
Underpinning skills
project management skills
financial and other resources management skills
communication skills, orally and in writing
cross-cultural competency, including gender and disability
research skills
analytical skills
problem solving using conceptual and reasoning skills
networking skills with clients, suppliers, stakeholders and end users
Resource implications
assessment may involve reports from supervisors and/or managers, reports from team members and references from clients
Consistency of performance
evidence to be gathered over time across a range of variables
Context/s of assessment
this competency may be assessed on-the-job or in a simulated work environment; holistic assessment; assessment by way of documented information and/or examples of personal work
This Evidence Guide must be read in conjunction with the Assessment Guidelines for the National Public Services Training Package.
Critical aspects of evidence
integrated demonstration of all elements and their related performance criteria; and
transition, performance and evaluation of contracts
relevant legislation and procedures applied to the procurement process
Interdependent assessment of units
Pre-requisite units: Nil
Co-requisite units: Nil
Co-assessed units: This unit may be co-assessed with any of the generalist public sector specific units at Diploma level or above. It is recommended that co-assessment occurs with some or all of the following units: PSPETHC501A Promote the Values and Ethos of Public Service; PSPLEGN501A Promote Compliance with Legislation in the Public Sector; PSPPOLI501A Manage Policy Implementation; PSPGOV501A Apply Knowledge of Government Systems; and PSPMNGT605A Manage Diversity
Underpinning knowledge
Commonwealth, State/Territory, Local Government procurement guidelines
procurement policies and practices
government procurement environment
financial rules and regulation requirements
legal requirements of government contracting
implications of particular contracting agreements
whole-of-life considerations
disposals considerations
procurement approval processes
strategic planning processes
procurement management processes
Law of contract
Trade practices law
Commercial law and relevant legislation
equal employment opportunity, equity and diversity principles
financial and accounting issues relevant to the contract
Underpinning skills
project management skills
financial and other resources management skills
communication skills, orally and in writing
cross-cultural competency, including gender and disability
research skills
analytical skills
problem solving using conceptual and reasoning skills
networking skills with clients, suppliers, stakeholders and end users
Resource implications
assessment may involve reports from supervisors and/or managers, reports from team members and references from clients
Consistency of performance
evidence to be gathered over time across a range of variables
Context/s of assessment
this competency may be assessed on-the-job or in a simulated work environment; holistic assessment; assessment by way of documented information and/or examples of personal work
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| C8259 | PSPPROC602B | Direct the management of contracts | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| C658 | BSB41404 | Certificate IV in Business (Purchasing) | Qualification |
| C664 | BSB51404 | Diploma of Business (Purchasing) | Qualification |
| C286 | PSP60199 | Advanced Diploma of Government | Qualification |
| C288 | PSP60399 | Advanced Diploma of Government (Contract Management) | Qualification |