Application
This unit applies to those responsible for managing and leading a project in an organisation, business or as a consultant.
The project manager operates within assigned authority levels, and is responsible for own performance and the performance of others.
The project manager may undertake the work in the context of an organisational program and/or portfolio of projects.
This unit has generic application for projects in a range of industries, organisations and contexts.
In the context of this unit a project is defined as involving:
a comprehensive, detailed and integrated project management plan
a formal communications plan
a dedicated and project-based budget
formal and planned engagement with a wide range of stakeholders
a documented risk, issues and change-management methodology
a quality plan with assurance and control processes
a project team-based environment.
Prerequisites
Not applicable.
Elements and Performance Criteria
1. Determine procurement requirements | 1.1 Identify procurement requirements with input from stakeholders as the basis for procurement planning 1.2 Establish and maintain, within delegated authority, an agreed procurement-management plan |
2. Establish agreed procurement processes | 2.1 Obtain information from suppliers capable of fulfilling procurement requirements 2.2 Determine or adopt established selection processes and selection criteria and communicate them to vendors to ensure transparency 2.3 Obtain relevant approvals for procurement processes to be used for the project |
3. Conduct procurement activities | 3.1 Identify and act according to probity and project-governance constraints 3.2 Communicate agreed proposals and/or specifications to prospective vendors to ensure clarity of understanding of project objectives 3.3 Solicit vendor responses according to proposal requirements 3.4 Evaluate responses and select preferred vendors according to current legal requirements and agreed selection criteria 3.5 Negotiate with preferred contractor or supplier, to agree on terms and conditions of supply |
4. Implement and monitor procurement | 4.1 Implement established procurement-management plan and make modifications in line with agreed delegations 4.2 Review progress and manage agreed variations to ensure timely completion of tasks and resolution of conflict within the legal framework of the supply agreement 4.3 Identify and report procurement-management issues and implement agreed remedial actions to ensure project objectives are met |
5. Manage procurement finalisation procedures | 5.1 Conduct finalisation activities to ensure vendor deliverables meet contracted requirements 5.2 Review project outcomes using available procurement records and information to determine effectiveness of procurement processes and procedures 5.3 Document lessons learned and recommended improvements for application to future projects |
Required Skills
Required skills
literacy and numeracy skills to produce and work with a range of procurement, contract and supply documentation
negotiation skills to obtain required agreement in procurement and contracting discussions
planning and organising skills to:
identify procurement and contract requirements
adjust and sequence them appropriately
problem-solving skills to resolve contractual and logistic issues
technology skills to use procurement and financial-management software.
Required knowledge
contracts and legal obligations as they relate to project procurement
ethical and behavioural expectations in the project and industry context
general conditions of contracts
legislation, codes and national standards relevant to types of contracts and associated procurement processes
procurement options, procedures and documentation.
Evidence Required
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 | |
Critical aspects for assessment and evidence required to demonstrate competency in this unit | Evidence of the following is essential: managing procurement and contracting processes for a project of sufficient complexity to demonstrate the full range of performance requirements applied knowledge of contracts and legal obligations as they relate to project management. |
Context of and specific resources for assessment | Assessment must ensure: access to workplace documentation in the area of procurement and contracts consideration of evidence from stakeholders as to how procurement was managed. |
Method of assessment | A range of assessment methods should be used to assess practical skill and knowledge. The following examples are appropriate for this unit: direct questioning combined with review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate oral or written questioning to assess knowledge of strategies for managing project procurement and their application to different situations analysis of responses in addressing case studies and scenarios that present issues and problems in project procurement and contract management review of procurement-management plan review of communication of agreed proposals and/or specifications to prospective contractors or suppliers assessment of evaluation of responses and selection processes for preferred contractors or suppliers review of identification and reporting of procurement-management problems. |
Guidance information for assessment | Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example: other units in the Diploma of Project Management. |
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.
Procurement requirements may include: | analysis of work breakdown structure budget review organisational procurement policy and procedures resource analysis resource types service level agreements specifications and performance requirements for goods and services statement of work vendor supply options available, including: formal tender contract heads of agreement preferred supplier agreement request for proposal request for quotation simple quotation and purchase. |
Delegated authority refers to planning and activities that may: | be conducted routinely or as changing circumstances dictate be done independently within broad guidance involve consultation with other project members, teams and internal stakeholders involve taking a lead role in a team where required involve the selection, use and supervision of appropriate procurement-management methods, tools and techniques take into account internal organisational change and external environmental change. |
Procurement-management plan identifies and outlines: | how procurement arrangements are communicated to stakeholders process to be used for procurement of resources process for monitoring and evaluating procurement related to the project procurement objectives, strategies and time lines resources to be obtained against a time line and budget responsibilities for staff/team members. |
Suppliers may include: | assigned internal resources consultant contractor vendor volunteers. |
Selection criteria may include: | adherence to specification availability experience financial stability industry and professional certifications membership of a pre-qualified panel of suppliers skill levels sustainability value for money work health and safety (WHS). |
Probity and project-governance constraints may include: | ethical behaviours limits of authority organisational policy and procedures prescribed decision escalation. |
Modifications may be made: | in consultation with project team members, section heads, project manager and stakeholders independently or with endorsement of relevant authority if necessary regularly throughout the project life cycle taking into account internal organisational change and external environmental change. |
Procurement records and information may include: | contract change proposals and approvals contract discharge and asset disposal register contract documentation, including contract negotiation documentation contractor selection criteria, processes and recommendations procurement-management plan product specifications test and acceptance procedures and documentation. |
Sectors
Management and Leadership – Project Management
Employability Skills
This unit contains employability skills.
Licensing Information
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.