23825 version 1 Page 1 of 4 Demonstrate knowledge of contract management in the road transport industry Level 5 Credits 5 Purpose This unit standard is for people in management positions in the road transport industry, and is applicable to both goods and passenger services. People credited with this unit standard are able to: demonstrate knowledge of contracting in the road transport industry; describe contract procurement processes; demonstrate knowledge of contract management for a road transport industry service; and explain the legal issues relating to contracts in the road transport industry. Subfield Commercial Road Transport Domain Road Transport Management Status Registered Status date 25 June 2007 Date version published 25 June 2007 Planned review date 31 December 2012 Entry information Open. Accreditation Evaluation of documentation and visit by NZQA and industry. Standard setting body (SSB) NZ Motor Industry Training Organisation (Incorporated) Accreditation and Moderation Action Plan (AMAP) reference 0092 This AMAP can be accessed at http://www.nzqa.govt.nz/framework/search/index.do. Special notes 1 The legal requirements to be complied with include: Employment Relations Act 2000; Land Transport Act 1998; Sale of Goods Act 1908. New Zealand Qualifications Authority 2016 23825 version 1 Page 2 of 4 2 Any new, amended, or replacement Acts, regulations, Rules, standards, codes of practice, or Land Transport New Zealand requirements or conditions affecting this unit standard will take precedence for assessment purposes, pending review of this unit standard. 3 A road transport operation may form part of an organisation’s activities or it may constitute a complete organisation. 4 The contracts used to meet the evidence requirements of element 4 may relate to actual or simulated industry context(s). 5 Element 3 of this unit standard covers a similar outcome to element 3 of Unit 19030, Demonstrate knowledge of tendering, negotiating, and managing a contract in a business operation. People who hold credit for unit standard 19030 may be able to use it as evidence for element 3 of this unit standard. Elements and performance criteria Element 1 Demonstrate knowledge of contracting in the road transport industry. Performance criteria 1.1 The explanation includes six different activities in a road transport operation that may be contracted out. 1.2 The explanation includes the different types of contract commonly used in the road transport industry. Range contract for service, mutual contract between road transport operators. 1.3 The explanation includes benefits and disadvantages of oral contracts. 1.4 The explanation includes systems for monitoring contracts in terms of benefits and disadvantages. Range includes but is not limited to – activity reporting, exception reporting. Element 2 Describe contract procurement processes. Performance criteria 2.1 The description includes methods of procuring contracts in terms of suitability for different products and services associated with a road transport operation. Range includes but is not limited to – open tender, advertising at large, registration of tenderers, invited tenders. New Zealand Qualifications Authority 2016 23825 version 1 Page 3 of 4 2.2 The description includes the key components of a tender document for a product or service used in the road transport industry. Range 2.3 one of – lease of vehicle, vehicle fleet maintenance, office supplies, accounting services, equipment, fuel. The description includes procedures for receiving, recording, opening, and evaluating tenders. Element 3 Demonstrate knowledge of contract management for a road transport industry service. Range one of – vehicle lease contract, contract for service, vehicle maintenance contract. Performance criteria 3.1 The explanation includes the parties’ roles and which party has control over the contract. 3.2 The explanation of the processes required to monitor and evaluate the performance of the contractor is in accordance with the procedures for monitoring in the contract and the minimum standards defined in the contract. 3.3 The explanation of processes to manage performance variations and/or breach of contract is in accordance with the terms and conditions of the contract. Element 4 Explain the legal issues relating to contracts in the road transport industry. Performance criteria 4.1 The explanation includes an outline of situations when legal advice should be sought. 4.2 The explanation includes a comparison between mediation and arbitration in terms of process and suitability for two different types of disputes relating to contracts in the road transport industry. Range 4.3 may include but is not limited to – quality of service delivered, charging for extra services, liabilities not identified, late payment by service deliverer. The explanation includes legal requirements for the maintenance and storage of documents relating to a contract. Range ownership of documents that may be used by enforcement agencies, custody of documents, electronic records. New Zealand Qualifications Authority 2016 23825 version 1 Page 4 of 4 Please note Providers must be accredited by NZQA, or an inter-institutional body with delegated authority for quality assurance, before they can report credits from assessment against unit standards or deliver courses of study leading to that assessment. Industry Training Organisations must be accredited by NZQA before they can register credits from assessment against unit standards. Accredited providers and Industry Training Organisations assessing against unit standards must engage with the moderation system that applies to those standards. Accreditation requirements and an outline of the moderation system that applies to this standard are outlined in the Accreditation and Moderation Action Plan (AMAP). The AMAP also includes useful information about special requirements for organisations wishing to develop education and training programmes, such as minimum qualifications for tutors and assessors, and special resource requirements. Comments on this unit standard Please contact NZ Motor Industry Training Organisation (Incorporated) info@mito.org.nz if you wish to suggest changes to the content of this unit standard. New Zealand Qualifications Authority 2016