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Elements and Performance Criteria

1. Establish agreements with sources external to the enterprise
   • The enterprise requirements of a business relationship with external sources are identified and defined.
   • The range of acceptable outcomes from a negotiation are established.
   • Contact is made with individuals, bodies or corporations, the appropriate individual is identified, and requirements of an agreement are discussed and mutually acceptable terms agreed.
   • Sound practice and procedure for business meetings are maintained and all agreements are documented.
2. Complete contract/commercial agreement documentation
   • Requirements of the contract/commercial agreement are clearly documented and understood by the relevant parties.
   • Areas of ambiguity or concern are clarified and resolved.
   • Conditions for service or supply are agreed between the parties including the determination of key performance indicators.
   • Alternative processes are undertaken where agreement is unable to be reached in accordance with enterprise procedures.
   • Negotiations conform to established enterprise requirements and relevant legislation.
   • Contract/commercial agreement documentation is signed and exchanged between the relevant parties.
3. Monitor the performance of contracts/commercial agreements
   • The rights and obligations of parties to a contract/commercial agreement are identified, and appropriate methods of addressing non-performance are implemented.
   • Professional and regulatory bodies available to support commercial grievance processes are identified and consulted when required.
   • Completion of contract/commercial agreement against key performance indicators is monitored.
   • Issues in respect to non-compliance are advised to the other party in writing.

Required Skills

Not applicable

Evidence Required

What evidence is required to demonstrate competence for this standard as a whole Competence in negotiating contracts requires evidence that contractscommercial agreements have been successfully and appropriately negotiated and monitored within an enterprise The skills and knowledge required to negotiate and monitor contractscommercial agreements must be transferable to a range of work environments and contexts For example this could include different services supplies of goods contractcommercial agreement formats and enterprise procedures
What specific knowledge is needed to achieve the performance criteria	Knowledge and understanding are essential to apply this standard in the workplace to transfer the skills to other contexts and to deal with unplanned events The knowledge requirements for this unit are listed below contractcommercial law applicable to the type of agreement processes of formulation and negotiation of contractscommercial agreements enterprise business policies and plans including procedures for maintenance of confidentiality selection and appropriate application of technology information systems and procedures
What specific skills are needed to achieve the performance criteria	To achieve the performance criteria some complementary skills are required These skills include the ability to establish agreements with sources external to the enterprise complete contractcommercial agreement documentation monitor the performance of contractscommercial agreements
What processes should be applied to this competency standard There are a number of processes that are learnt throughout work and life which are required in all jobs They are fundamental processes and generally transferable to other work functions Some of these are covered by the key competencies although others may be added The questions below highlight how these processes are applied in this competency standard Following each question a number in brackets indicates the level to which the key competency needs to be demonstrated where not required perform the process perform and administer the process and perform administer and design the process
How can communication of ideas and information be applied	Through contacts with clients and others in management team
How can information be collected analysed and organised	Through use of available information sources
How are activities planned and organised	Through analysis of work against contract andor commercial agreement specifications
How can team work be applied	Through consultation with others on contract andor commercial agreement preparation
How can the use of mathematical ideas and techniques be applied	Through calculations involved in establishing and monitoring the contractcommercial agreement
How can problemsolving skills be applied	Through negotiations to resolve disputes and issues that arise
How can the use of technology be applied	Through use of computers and communication systems
Are there other competency standards that could be assessed with this one This competency standard could be assessed on its own or in combination with other competencies relevant to the job function
There is essential information about assessing this competency standard for consistent performance and where and how it may be assessed in the Assessment Guidelines for this Training Package All users of these competency standards must have access to the Assessment Guidelines Further advice may also be sought from the relevant sector booklet

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Range Statement

Range of Variables The Range of Variables explains the contexts within which the performance and knowledge requirements of this standard may be assessed. The scope of variables chosen in training and assessment requirements may depend on the work situations available
What external sources may be relevant to this competency standard?	External sources may include banks, accountants, legal representatives, sub-contractors, suppliers of services, suppliers of capital equipment items, and government departments.
What requirements may be relevant to contract documentation?	Contract/commercial agreement requirements may relate to the following: quality or enterprise work specifications and procedures manufacturers specifications and/or suppliers handling and storage advice workplace operating procedures and policies supplier and/or client instructions legal and contract documentation Materials Safety Data Sheets communications technology equipment, oral, aural or signed communications personal and work area work procedures and practices applicable State, Territory and Commonwealth legislative framework concerning contracts and trade practices OHS in terms of duties of employers, employees, suppliers and contractors contracts hazardous substances and dangerous goods environment protection equal opportunity, equal employment opportunity and affirmative action standards and certification requirements license, patent or copyright arrangements quality assurance procedures emergency procedures.
For more information on contexts, environment and variables for training and assessment refer to the Sector Booklet.

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