- PSPPROC503A - Manage contract performance
Assessor Resource
PSPPROC503A
Manage contract performance
Assessment tool
Version 1.0
Issue Date: April 2024
This unit covers the implementation of strategies that ensure effective contract performance by officers whose primary role is contract management, and who may or may not have had involvement in the procurement process preceding execution of the contract.
PSPPROC410A Administer contracts is the appropriate unit for officers undertaking contract management as a minor part of their work role.
The unit includes managing of the business relationship, managing performance of the contract, managing contract issues, and implementing a communication/information strategy.
In practice, managing contract performance may overlap with other public sector generalist and specialist work activities such as acting ethically, complying with legislation, providing client service, providing leadership, developing policy, undertaking negotiations etc.
This is one of 4 units of competency in the Procurement&Contract Management Competency field that address the requirements of contract management performed by specialist contract managers.
Related units are:
PSPPROC501A Manage contract riskPSPPROC502A Establish contract management arrangements PSPPROC504A Finalise contracts
The superseded unit PSPPROC404A Manage contracts is equivalent to the three units:
PSPPROC502A Establish contract management arrangements + PSPPROC503A Manage contract performance + PSPPROC504A Finalise contracts
Equivalence may be claimed for EITHER:
PSPPROC410A Administer contracts ORPSPPROC502A - 504A inclusive, but not both.
This is a new unit of competency, added to the Procurement&Contract Management Competency field of the Training Package in 2004.
You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)
Employability Skills
This unit contains employability skills.
Evidence Required
List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
The Evidence Guide specifies the evidence required to demonstrate achievement in the unit of competency as a whole. It must be read in conjunction with the Unit descriptor, Performance Criteria, the Range Statement and the Assessment Guidelines for the Public Sector Training Package. | |
Units to be assessed together | Pre-requisite units that must be achieved prior to this unit: Nil Co-requisite units that must be assessed with this unit: Nil Co-assessed units that may be assessed with this unit to increase the efficiency and realism of the assessment process include, but are not limited to: PSPETHC501B Promote the values and ethos of public service PSPGOV505A Promote diversity PSPGOV507A Undertake negotiations PSPGOV508A Manage conflict PSPGOV511A Provide leadership PSPGOV512A Use complex workplace communication strategies PSPLEGN501B Promote compliance with legislation in the public sector PSPPROC501A Manage contract risk PSPPROC502A Establish contract management arrangements PSPPROC504A Finalise contracts |
Overview of evidence requirements | In addition to integrated demonstration of the elements and their related performance criteria, look for evidence that confirms: the knowledge requirements of this unit the skill requirements of this unit application of the Employability Skills as they relate to this unit (see Employability Summaries in Qualifications Framework) management of contract performance in a range of (3 or more) contexts (or occasions, over time) |
Resources required to carry out assessment | These resources include: legislation, policy, procedures and protocols relating to contract management case studies and workplace scenarios to capture the range of contract management situations likely to be encountered |
Where and how to assess evidence | Valid assessment of this unit requires: a workplace environment or one that closely resembles normal work practice and replicates the range of conditions likely to be encountered when managing contract performance, including coping with difficulties, irregularities and breakdowns in routine management of contract performance in a range of (3 or more) contexts (or occasions, over time) Assessment methods should reflect workplace demands, such as literacy, and the needs of particular groups, such as: people with disabilities people from culturally and linguistically diverse backgrounds Aboriginal and Torres Strait Islander people women young people older people people in rural and remote locations Assessment methods suitable for valid and reliable assessment of this competency may include, but are not limited to, a combination of 2 or more of: case studies portfolios questioning scenarios authenticated evidence from the workplace and/or training courses |
For consistency of assessment | Evidence must be gathered over time in a range of contexts to ensure the person can achieve the unit outcome and apply the competency in different situations or environments |
Submission Requirements
List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here
Assessment task 1: [title] Due date:
(add new lines for each of the assessment tasks)
Assessment Tasks
Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the essential skills and knowledge and their level, required for this unit. |
Skill requirements Look for evidence that confirms skills in: using communication and negotiation with contractor and stakeholders involving complex oral and written exchanges reading and applying complex documents such as contracts, legislation and guidelines resolving disputes/conflict/complaints or making judgments about when to refer them to others building/managing effective working relationships writing management reports and keeping records of meetings, liaisons, notes and follow-up action, requiring precision of expression responding to diversity, including gender and disability applying occupational health and safety and environmental requirements in the context of contract management |
Knowledge requirements Look for evidence that confirms knowledge and understanding of: Commonwealth/State/Territory Government legislation, policies, practices and guidelines relating to contract management, including environmental purchasing guidance contract management for a range of contractual situations privacy and confidentiality issues probity principles and issues whole-of-life considerations equal employment opportunity, equity and diversity principles financial and accounting issues relevant to the contract public sector legislation including occupational health and safety and environment legal aspects of negotiation aspects of law of contracts, trade practices law and commercial law relevant to the management of contracts relating to complex procurement |
The Range Statement provides information about the context in which the unit of competency is carried out. The variables cater for differences between States and Territories and the Commonwealth, and between organisations and workplaces. They allow for different work requirements, work practices and knowledge. The Range Statement also provides a focus for assessment. It relates to the unit as a whole. Text in italics in the Performance Criteria is explained here. | |
Probity principles are | accountability transparency confidentiality management of conflicts of interest maintained to: ensure conformity to processes facilitate accountability ensure proponents are treated in a fair and equitable manner encourage commercial competition, where appropriate preserve public and private sector confidence in government processes |
Legislation, policy and standards may include | financial management legislation government procurement/purchasing/contracting legislation, policy and guidelines public sector standards ethics standards codes of conduct/ethics cross-cultural and social justice issues environmental purchasing |
Formal and informal mechanisms may include | non-confrontational interaction hospitality formal contract variations formal negotiations |
Contract management plan may include | risk management plan contingency plan communication/public relations plans human resource management plan disposal plan contract review plan setting up routines checking quality assurance systems transfer of legal responsibility insurances strategies to avoid implied acceptance of varied conditions through non-enforcement of contractual obligations environmental/green issues industry policy |
Contracts may include | memoranda of understanding/memoranda of agreement in-house option directives common use arrangements/standing offers inter/intra-government agreements letters of intent licensing purchases from suppliers standing offers |
Risks might include | suppliers' inability to meet agreements end users' or buyers' inability to meet obligations limited number of suppliers client considerations not fully understood options for people with limited language/literacy skills implications if dependence on one supplier is enshrined versus risks in lack of continuity and consistency in services provided other environmental influences |
Variation to agreements may include arise from | change of scope negotiation of new terms and conditions dissolution of contracts inability to deliver |
Early signs of under-performance may be detected through | tracking milestones regular meetings meeting records and follow-ups file management - audit trail stakeholder surveys on performance ongoing review of deliverables |
Actions to improve performance may include | discussion with contractor regular interaction ongoing performance feedback expert advice |
Disputes may include | disputes over: requirements delivery schedules price changes additional tasking payment schedules complaints from third parties formal versus informal eg unethical versus criminal behaviour |
Techniques available to resolve disputes include | conference negotiation mediation arbitration resort to contractual agreements legal considerations |
Negotiation of issues may include | contract variations continuous improvement innovations non-compliance consequences |
Actions (as a result of unresolved conflict) may include | mediation court action termination of contract |
Effective communication strategies may include | clear communication understanding the needs of the service provider and the client setting regular times to talk, meet or check on progress protocols for dealing with other stakeholders emergency contact arrangements a diary system to monitor milestones, timeframes, receipt of deliverables etc strategies for ensuring information flow at critical stages of the contract |
Organisational purposes may include | probity governance requirements relevant details extracted, collated and arranged in a format for reports and other documents |
Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.
Observation Checklist
| Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice | Yes | No | Comments/feedback |
|---|---|---|---|
| Probity is managed in accordance with organisational requirements, legislation, policy and public sector standards | |||
| Obligations to the contractor are met in accordance with contractual arrangements | |||
| Consideration of conflicts of interest and their resolution are recorded in accordance with public sector standards and organisational requirements | |||
| Relationship with contractor is managed through formal and informal mechanisms in accordance with organisational policy and procedures | |||
| Business relationship is managed in the public interest in accordance with public sector standards and organisational requirements | |||
| Start-up or transition arrangements are implemented in accordance with contract requirements and organisational procedures | |||
| Contract management plan is monitored for effectiveness on a regular basis and adapted as necessary during the life of the contract | |||
| Performance of the contract is monitored against key performance indicators and tracking milestones to ensure all obligations under the agreement are being met | |||
| E-procurement, financial and other resources are managed as necessary in accordance with contractual requirements and organisational procedures | |||
| Emerging and potential risks are identified and managed in accordance with organisational risk management procedures | |||
| Contract variations are managed in accordance with the contract management plan and organisational policy and procedures | |||
| Early signs of under-performance are identified and action is taken to improve performance to the agreed level and is documented in accordance with the contract communication/information policy | |||
| Disputes/complaints are investigated and resolved or referred in accordance with contract management plan and contractual arrangements | |||
| Negotiation of issues relating to the contract is conducted and approvals are obtained in accordance with stipulations in the contract | |||
| Conflict is addressed and resolved where possible or other actions are taken in accordance with contractual arrangements | |||
| Communication on the performance of the contract is maintained with all stakeholders in accordance with organisational protocols and public sector standards | |||
| Management reporting is carried out in accordance with tracking milestones and organisational requirements | |||
| Contract information is maintained for organisational purposes in accordance with organisational policy and procedures |
Forms
Assessment Cover Sheet
PSPPROC503A - Manage contract performance
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Assessment Record Sheet
PSPPROC503A - Manage contract performance
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