Application
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.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
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 |
Foundation Skills
This section describes those language, literacy, numeracy and employment skills that are essential to performance but not explicit in the performance criteria.
Skill | Description |
Reading | Interprets and analyses textual information from a range of sources and identifies relevant key information to assist in the negotiation process |
Writing | Develops material to convey explicit information and results using clear and detailed language appropriate to audience and context |
Oral Communication | Uses clear language and suitable features to provide information to a variety of individuals Uses active listening and questioning techniques to convey and clarify information |
Navigate the world of work | Monitors adherence to implicit and explicit organisational procedures and policies Recognises the implications of legal and regulatory responsibilities related to own work and is beginning to recognise some general legal principles applicable across work contexts |
Interact with others | Selects the appropriate form, channel and mode of communication for a specific purpose relevant to own role Collaborates and negotiates with others as part of familiar routine activities |
Get the work done | Takes responsibility for planning, sequencing and prioritising tasks for efficient and effective outcomes Implements standard procedures to make routine decisions Recognises and takes responsibility for addressing predictable problems in familiar work contexts Understands the importance of secure information in relation to own work |
Sectors
Administration – Procurement and Contracting