Course Title: Negotiate a contract

Part B: Course Detail

Teaching Period: Term1 2017

Course Code: BUSM8741C

Course Title: Negotiate a contract

School: 650T Vocational Business Education

Campus: City Campus

Program: C5340 - Diploma of International Business

Course Contact: Theresa Lyford

Course Contact Phone: +61 3 9925 5444

Course Contact Email:

Name and Contact Details of All Other Relevant Staff

Justin Briggs

Nominal Hours: 40

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Pre-requisites and Co-requisites


Course Description

This unit involves the skills and knowledge required to contract transport and distribution services in accordance with relevant regulatory requirements and workplace procedures. This includes negotiating the contract with a contractor, finalising the contract negotiations, and completing all enterprise contract requirements.

National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

TLIR4003 Negotiate a contract


1 Negotiate contract specifics with contractor

Performance Criteria:

1.1 Requirements of the contract are clearly documented and understood by the relevant parties
1.2 Areas of ambiguity or concern are clarified and resolved
1.3 Negotiations are undertaken with selected contractor for the contracting of required goods/services on a 'without prejudice' basis
1.4 Conditions for service and/or supply of goods/services are agreed between the enterprise and the contractor including the determination of key performance indicators
1.5 Alternative contractors are negotiated with if agreement is unable to be reached with preferred contractor
1.6 Contract negotiations conform to established workplace requirements and relevant legislation


2 Complete contract negotiations

Performance Criteria:

2.1 Contract documentation is drafted in accordance with relevant legislation, workplace procedures and negotiated conditions of service and supply
2.2 Technical support in the drafting of contracts is accessed where required
2.3 Contract documentation is signed and exchanged between the relevant parties


3 Complete enterprise contract requirements

Performance Criteria:

3.1 Documentation systems are established to ensure traceability of orders and financial transactions
3.2 Workplace systems that require interaction with contractors are identified and actioned
3.3 Quality assurance procedures for supplied goods/services are initiated
3.4 Contract and ancillary documentation is completed and stored in accordance with workplace procedures and, where applicable, regulatory requirements

Learning Outcomes

This course is structured to provide students with the optimum learning experience in order to demonstrate the skills and knowledge required to contract transport and distribution services in accordance with relevant regulatory requirements and workplace procedures.

Details of Learning Activities

 A range of learning activities are planned for this course including self-paced and collaborative classroom based activities. 

The self-paced activities will be delivered through various technology platforms and include your contribution to tutorial activities and interactive sessions.
 The collaborative classroom based activities will include group discussion, group problem solving activities and opportunities to practice your skills in a simulated/real workplace environment.

We expect you to participate and contribute in all scheduled learning activities.


Teaching Schedule


Week Number





 6th Feb

Teacher, student introductions Rules Explain cluster and schedule Assessments and Feedback Deadlines and resubmissions. Results: competency and grades.  

Assessment Guide Handout & Discussion


 13th Feb

Introduction To Contracts



 20th Feb

Introduction to Contract Law when Negotiating Business Deals



27th Feb

Introduction To Contract Law when Negotiating Business Deals



6th Mar

Introduction To Assessing the Supply Market



 13th Mar

Introduction to Developing the Sourcing Strategy ( 13th March Labour Day PH )



20th Mar

Introduction to Developing the Sourcing Strategy



 27th Mar

Introduction to Purchasing Negotiation

 Assessment Task 1 – Contract Negotiation - Case Study


 3rd Apr

Introduction to Implementation and Integration of the Contractual Agreement



 10th Apr

 Mid Semester Break ( 13th of Apr to 19th Apr no classes )



27th Apr

Introduction to Implementation and Integration of the Contractual Agreement ( 25th Apr Anzac Day PH )


1st May

Introduction to Supplier Performance Measurement and Improvement



8th Apr

Introduction to Supplier Performance Measurement and Improvement



15th Apr

Introduction to Maintenance of Records and Relationships

 Assessment Task 2 – Goods & Service Evaluation Report


 22th Apr

Assessment Task 3 - Presentations

 Assessment Task 3 –   Presentation –


29th Apr

 Re submission & Review















Learning Resources

Prescribed Texts


Other Resources

Overview of Assessment

Assessment Methods

Assessment methods have been designed to measure achievement of the requirements in a flexible manner over a range of assessment tasks, for example:

  • direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
  • review of final printed documents
  • demonstration of techniques
  • observation of presentations
  • oral or written questioning to assess knowledge of software applications

You are advised that you are likely to be asked to personally demonstrate your assessment work to your teacher to ensure that the relevant competency standards are being met.

Performance Evidence

You will be required to provide evidence of the ability to:

  • Communicate effectively with others when negotiating a contract
  • Read and interpret instructions, procedures, information and regulatory requirements relevant to the negotiation of a contract
  • Prioritise work and coordinate self and others in relation to workplace activities
  • Complete documentation related to the negotiation of a contract
  • Operate electronic communication equipment to required protocol
  • Provide leadership and work collaboratively with others when negotiating a contract
  • Adapt appropriately to cultural differences in the workplace, including modes of behaviour and interactions with others
  • Promptly report and/or rectify any identified problems that may arise when negotiating a contract in accordance with regulatory requirements and workplace procedures
  • Apply precautions and required action to minimise, control or eliminate risks that may exist when negotiating a contract
  • Plan and organise work activities
  • Monitor work activities in terms of planned schedule
  • Modify activities to cater for variations in workplace contexts and environment
  • Work systematically with required attention to detail without injury to self or others, or damage to goods or equipment
  • Select and apply appropriate technology and information systems
  • Adapt to differences in equipment in accordance with standard operating procedures

Performance Knowledge

You must provide evidence of the following knowledge:

  • Regulations, codes of practice and legal requirements relevant to contractual arrangements
  • Relevant OH&S and environmental protection procedures and regulations
  • Workplace procedures for the negotiation of a contract
  • Problems that may occur during the negotiation of a contract and action that can be taken to report or resolve the problems
  • Risks that may exist when negotiating a contract and ways of controlling the risks involved
  • Focus of operation supply arrangements, resources, management and workplace operating systems
  • Applicable aspects of contract law
  • Processes for contract formulation and negotiation
  • Workplace business policies and plans including procedures for maintenance of confidentiality
  • Equipment applications, capacities, and configurations
  • Resource availability including the competencies of individuals in the team/group
  • Relevant contract documentation requirements


Feedback will be provided throughout the semester in class and/or online discussions. You are encouraged to ask and answer questions during class time and online sessions so that you can obtain feedback on your understanding of the concepts and issues being discussed. Finally, you can email or arrange an appointment with your teacher to gain more feedback on your progress.

You should take note of all feedback received and use this information to improve your learning outcomes and final performance in the course.

Assessment Tasks

This course is co-delivered and co-assessed with OMGT5039C Source Goods & Services and Evaluate Contractors

Assessment Task 1 – Contract Negotiation - Case Study
Date handed out:  Week 1
Date and time due:  Week 8 Friday 31st of March by 5.00pm

Group or Individual: Groups of no more than 2 students 
This assignment will allow you to develop "Contract Negotiations ” skills and include the ability to Communicate and Negotiate effectively with others when sourcing goods and services and evaluating contractors.  It requires you to develop innovative strategies and tactics to work collaboratively with others when sourcing goods and services and evaluating contractors

You are required to complete the “Contract Management Plan Template” (based on your allocated stand point of a Buyer or a Seller) The template is supplied in the Assessment folder via Blackboard, you must ensure that all sections of the template are completed and that you include summaries of the following topics in the template,

Assessment Task 2 – Goods & Service Evaluation Report
Date handed out:  Week 1     
Date and time due: Week 14 Friday 19th of May 5.00pm
Group or Individual: Groups of no more than 2 students ( Max 3000 Words ) 
In the Goods & Service Industry much of the supply chain relies on having good suppliers who meet deadlines and provide the appropriate products as requested. Because this is such an important part of International Business it is incumbent on employees & Managers in the industry to build excellent relationships with these suppliers and to have strict procedures in place to ensure quality services. In order for you to be able to build those relationships and have the appropriate documentation in order you will require a set of tools to assist you.

For this unit you will need to create a portfolio of tools that can assist you in effectively managing suppliers. Completion of this task has been broken down into 3 sections so that you build your portfolio of documents as you progress through the unit.

Assessment Task 3 –  Presentation –
Date handed out:  Week 1
Date and time due:  Week 15
Group or Individual: Groups of no more than 2 students – Note: This assignment follows on from Assignment 1 –
This research assignment and presentation will allow you to research and present on critical aspects of Contract Negotiation & Sourcing Goods and Services in the management of Evaluating Contractors.
In groups of not more than 2 students ( your groups for Assessment Task 1 & 2 ) you will be required to present a 15 minute presentation which addresses the topic of ‘How you Evaluated, Negotiated and Conducted the purchase of the assigned product from both a Seller & Buyers prospective and how these Negotiations were in line with company policy?



Assessment Matrix

Marking Guide (competency):
 Vocational Education and Training (VET) is based on current industry needs and the focus on preparing you for the workplace. Because VET courses are informed by practical application of knowledge and skills, they are based on a system known as ‘competency based training’ (CBT). So when you are assessed in VET it is about whether you are competent to do the job, as well as having a firm grasp on the knowledge and skills required to do that job, as opposed to traditional curriculum based education settings that are often based on knowledge retention.

You need to demonstrate you are competent in each element of the unit of competency you are studying.

You will receive feedback on each assessment task that will inform you whether you are competent or not and how well you are performing. Once competent in all elements of the unit you receive a competency grading.

Please refer to the Final Grades table below.

Marking Guide (Grading)
 After achieving competency we then grade your performance in the unit; this gives you the opportunity to have the level of your performance formally recognized against industry standards and employability skills.

Final Grades table:

CHD Competent with High Distinction
 CDI Competent with Distinction
 CC Competent with Credit
 CAG Competency Achieved – Graded
 NYC Not Yet Competent
 DNS Did Not Submit for assessment

Further information regarding the application of the grading criteria will be provided by your teacher.


Other Information

Submission requirements:
 You are required to meet the following criteria for all assessments. Failure to do so may result in you being deemed not-yet-competent:

• Submit all assessment tasks online through blackboard, and include the RMIT e-submission declaration (see below).
• Ensure that you submit assessments on or before the due date.
• Retain a copy of your assessment tasks.

Electronic Submission
 When submitting work online, you need to include the cover sheet supplied by your teacher. This includes the following declaration:

RMIT Electronic Submission of work for assessment
 I declare that in submitting all work for this assessment I have read, understood and agree to the content and expectations of the assessment declaration.

 If you are found to be Not Yet Competent (NYC) in an Assessment Task you will be allowed one resubmission to demonstrate competence. Your teacher will provide feedback regarding what you need to do to improve and will set a new deadline for the resubmission. The highest grade you will receive if your resubmission is successful is “CAG”.

Late Submissions
 Students are required to submit assessment items and/or ensure performance based assessment is completed by the due dates. If a student is to be prevented from submitting an assessment item on time, by circumstances outside their control, they may apply in advance to the teacher for an extension to the due date of up to seven calendar days. To be eligible for an extension, you must lodge the extension form availabile at the following link with your teacher:

Where an extension of greater than seven days is needed, the student must apply for special consideration. Applications for special consideration must be submitted no later than two working days after the assessment task deadline or scheduled examination. More information on special consideration and how to apply can be found here:

Final Date for All Assessments
 No assessment tasks or resubmissions will be accepted after 5pm Friday, week 16.

Adjustments to Assessment
 In certain circumstances students may be eligible for an assessment adjustment. Information on circumstances under which the assessment arrangements might be granted can be found at the following website:


Course Overview: Access Course Overview