Course Title: Manage strategic contracts

Part B: Course Detail

Teaching Period: Term1 2014

Course Code: BUSM7881C

Course Title: Manage strategic contracts

School: 650T TAFE Business

Campus: City Campus

Program: C6101 - Advanced Diploma of International Business

Course Contact : Tim Wallis

Course Contact Phone: +61 3 9925 5423

Course Contact

Name and Contact Details of All Other Relevant Staff

John Fowler

Nominal Hours: 60

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 course is suited to those in specialist procurement and contracting roles, and will allow learners to manage contract establishment, performance and evaluation in order to meet an organisation’s core objectives.

National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

PSPPROC607A Manage strategic contracts


1. Manage contract establishment

Performance Criteria:

1.1. Requirements of contracts and strategic initiatives are discussed, clarified and agreed by all parties.
1.2. Responsibilities for establishing and carrying out procedures are assigned to achieve contract outcomes.
1.3. Effective communication strategies and processes are established and implemented to assist ongoing communication between internal and external stakeholders and contractors.
1.4. Relationship management is undertaken of all levels of personnel involved in procurement and contract management, within probity boundaries.
1.5. Strategic relationships are established and managed within probity boundaries to improve procurement capability and performance.
1.6. Risk management plans are updated according to organisational policy and procedures.


2. Manage contract performance

Performance Criteria:

2.1. Progress of contracts is monitored against set targets and performance measures to ensure success of procurement activities.
2.2. Should monitoring find that set targets, performance measures and probity requirements are not being met, action is taken to rectify performance in a timely manner.
2.3. Advice and support are provided to solve problems, make improvements and maintain progress.
2.4. Disputes are managed promptly according to contractual conditions to achieve resolution and maintain contract performance and progress.
2.5. Opportunities to continuously improve procurement outcomes are sought and negotiated with contractors.
2.6. Approvals are provided or gained for contract variations that are negotiated and agreed between the parties.
2.7. Opportunities are provided for stakeholders and contractors to have input into and receive feedback on progress during the performance of the contract.
2.8. Internal and external stakeholders are engaged as necessary throughout the life of the contract to maintain progress.


3. Manage contract evaluation

Performance Criteria:

3.1. Evaluation of contract performance is undertaken relative to planned performance measures and in consultation with stakeholders and contractors.
3.2. Where stakeholders and contractors do not agree, dispute resolution is undertaken according to organisational policy and procedures.
3.3. Conclusions are detailed against agreed criteria to provide a complete picture of performance of contractors, organisation's procurement processes and value for money.
3.4. Performance of strategic initiatives is measured relative to planned outcomes in consultation with industry and other stakeholders.
3.5. Lessons learnt from evaluations of contracts and strategic initiatives are documented according to organisational requirements and used to continuously improve future procurement activities.
3.6. Contractors and stakeholders are advised of evaluation outcomes in a timely manner according to organisational guidelines.

Learning Outcomes

This unit covers the competencies required to manage contracts for strategic purchases, to effectively minimise risks and achieve value for money to meet an organisation’s core objectives. It includes managing the establishment, performance and evaluation of strategic contracts.

Details of Learning Activities

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

The self-based activities will be delivered through various technology platforms and will include quizzes, scenario case studies and interactive sessions.

The collaborative classroom based activities will include group discussion, group problem solving activities and opportunities to practice skills in a simulated workplace environment.

Teaching Schedule

Week   Date    Topic
110 Feb Induction and pre-training review
217 Feb Business legal resposibilities
324 Feb Tender Process and Contract formulation
43 Mar

 Drafting of contracts

510 Mar Manage contract establishment
617 Mar Legal process of current and possible trading partners
724 Mar Legal process of current and possible trading partners
831 Mar Manage contract performance
97 Apr Manage contract performance
1014 Apr Review and Mini Quiz (Non-Assessable)
1128 Apr Manage contract evaluation
125 May Dispute resolution process
1312 May Contractor performance
1419 May Stakeholder consultation process
1526 May Contract improvement and evaluation processes
162 June Individual student interviews

Week 1 will consist of an induction to the course which will include completion of a pre training review and familiarisation with:

  • Your teacher(s) and other students.
  • Services and facilities
  • Student responsibilities
  • Where to get support
  • Course requirements, key learning outcomes, assessment, feedback and grading.
  • Submission requirements and the resubmission policy
  • Plagiarism
  • Appeals
  • Extensions and Special Consideration
  • Privacy

This unit is codelivered and coassessed with LAW5178 Apply Contract Law to International Business Activities

Learning Resources

Prescribed Texts


Other Resources

Overview of Assessment

Students must demonstrate an understanding of all elements of a particular competency to be deemed competent. Assessment methods have been designed to measure achievement of each competency in a flexible manner over a range of assessment tasks.

Assessment will incorporate a variety of methods including assignments, journals, presentation and written or test. Students are advised that they are likely to be asked to personally demonstrate their assessment work to their teacher to ensure that the relevant competency standards are being met.

Assessment Tasks

This course has two assessments.  You must fully and successfully complete all assessments to be deemed competent in this unit.

This unit is codelivered and coassessed with LAW5178 Apply Contract Law to International Business Activities

Assessment Task 1 – Local Government Contract Formulation
Date handed out: Week 1
Date and time due: Week 15
Group or individual: Group

This assignment is interactive in that groups will interact with other groups in the formulation of a specific local government project with each group taking on two roles i.e the first role will be for staff in the Tender Department of a local council in the contract formulation and the Second role will be in relation to a contractor for the actual tender for work to be undertaken for the other groups

Each group will prepare a contract in various time frames to cover:

A. Tender Department
• Preparation of draft contract
• Advertisement to the public
• Registration of interest sent to prospective contractors
• Award of contract

B. Prospective Contractor
• Reply to Tender Department requesting Registration of Interest detail
• Submitting a bid based on the detail given by the Tender Department
• Answering any requests for more information

Assessment Task 2 – Collusion Analysis
Date handed out: Week 7
Date and time due: Week 8
Group or individual: Individual

This case study exercise will require research of a real life example of two large manufacturing companies which became involved in a very expensive case of collusion

You will be provided with specific requirements in class to enable you to undertake this assignment to cover the following requirements as follows:

• Detail history
• Court decision
• Damages awarded
• Flow on litigation both in Australia and overseas
• Lessons gained

Assessment Task 3 – Subway Franchise in China Report
Date handed out: Week 3
Date and time due: Week 11
Group or individual: Individual

This assignment has been designed to test your knowledge of franchising within Australia and overseas

You will prepare a report which will detail information that will assist potential Chinese franchisees to set up in China

Submission requirements:

Assessment tasks must be submitted online through blackboard.

You must:
• Retain a copy of your assessment tasks.
• Complete, sign and submit a cover sheet with all work you submit for assessment, whether individual or group work. On the cover sheet you declare that the work you are presenting for assessment is your own work. An assignment cover sheet for submission of work for assessment is available on blackboard.
• For group assignments - all group members must complete and sign the cover sheet.
• Each page of your assessment you should include footer with your name(s), student number(s), the title of the assessment, unit code and title and page numbers. For example, Julie Macpherson, 324567, Task 2, OHS2345C Ensure safe workplace, Page 1 of 10.

If you are found to be Not Yet Competent in a Course Assessment Task you will be allowed one resubmission only. 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”.
If you are still not meeting the assessment requirements you must apply to your Program Manager in writing outlining the steps you will take to demonstrate competence in your course. Your submission will be considered by the Program Team and you will be advised of the outcome as soon as possible.

Final Date for All Assessments
Unless the Late Submission Procedures (see above) are applied, No assessment tasks or resubmissions will be accepted after 5pm Friday, Week 16.

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.

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.

You will be provided with an assessment matrix in the assessments area of the unit blackboard shell.  Generally, your grading will be assessed against how well you demonstrate:

  • Perform the activities as required by the learning elements of this unit of competency.
  • Demonstrate the required knowledge for this unit of competency.
  • Execute the required skills for this unit of competency.
  • Demonstrate your employability skills through contribution to learning activities related to this assessment, timeliness, use of technology and teamwork.

Final Grades table:

DNS - Did not submit for assessment
NYC - Not yet competent
CAG - Competency achieved – graded
CC - Competent with credit
CDI - Competent with distinction
CHD - Competent with high distinction

Other Information

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:

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