8600-335 Understand How to Manage Contracts and Contractors in the Workplace

Introduction

8600-335 Understand how to manage contracts and contractors in the workplace is a unit within the ILM Level 3 module that focuses on building the ability of the leader to effectively handle contracts within the organisation. The organisations require various employees and other service providers who could be recruited through the use of contracts. As such, contracts have become a critical part of the modern organisation through which they can receive services from external institutions and service providers.

This makes understanding the principle of contract and establishing effective contract management practices an important aspect within the organisation to ensure that it can achieve these goals and objectives through effectively managing contracts and contractors. 8600-335 Understand how to manage contracts and contractors in the workplace is a unit that helps to support the process of utilising contracts in ensuring the organisation receives effective and efficient services from external providers.

The unit aims to ensure that there is an understanding of the approaches and strategies that can be put up within the organisation in alignment with organisational policies and practices to effectively manage contracts and contractors recruited within the organisation. The unit builds an understanding of procedures and policies that may be implemented to ensure the contractor is able to meet organisational standards and requirements. The unit is taught in 8 hours of guided learning and contributes 2 credit values towards the completion of the ILM Level 3 module.

Who is this unit suitable for?

Managing contracts and contractors within the workplace is the duty of leaders. It is important that leaders at different levels understand the principles of effectively managing contracts and contractors to ensure that they facilitate the achievement of the goals and objectives of the organisation using the contractors. 8600-335 Understanding how to manage contracts and contractors in the workplace is, therefore, a critical leadership and management course that helps leaders acquire the relevant and basic information they require to effectively handle the contractual agreements and procedures within the organisation.

This unit is designed to meet the learning needs of first-line managers, junior managers, and team leaders within the organisation. These leaders are responsible for overseeing specific practices and projects within the organisations. They are responsible for facilitating contractual work by examining the activities of contractors and fulfilment of contractual agreements within the workplace. This involves being able to communicate and provide support to the contractors, controlling and monitoring the works of contractors, and identifying whether the activities of the contractors are authorized and safe.

The unit is, therefore, suitable for enabling these leaders within the primary levels of operation within the organisation to have the ability to fulfil their responsibilities and mandate. The unit is also applicable to top and middle managers who enter contractual agreements. It can be used to provide these levels of leadership with information to ensure that they are able to develop effective contractual agreements that contribute to achieving organisational goals and objectives. External consultants in charge of supporting contractual engagements for the organisation are also suited to this unit to ensure they build their information and understanding of the management of contracts.

Learning Outcomes

Upon completion of the unit, the learner should be able to:

• Outline the contract management practices, procedures, and tools:

Upon completion of the unit, learners should be capable of providing a comprehensive overview of the contract management practices, procedures, and tools that are in place within their organisation. This includes a detailed understanding of how contracts are initiated, executed, monitored, and concluded. Learners should be able to identify specific tools and methodologies employed in their area of responsibility.

• Describe a contract managed and explain the experience:

Learners should be able to recount their active involvement in managing a specific contract. This involves articulating the nuances of the contract, detailing their responsibilities, and elucidating the challenges and successes faced during the management process. This learning outcome emphasizes practical application and the ability to reflect on real-world experiences.

• Identify effective approaches to communicate with contractors:

Successful completion of this unit requires learners to identify and articulate effective communication strategies with contractors in the workplace. This includes methods for conveying pertinent information, ensuring clarity in instructions, and fostering a collaborative environment. Effective communication is crucial for the successful execution of contractual agreements.

• Identify the forms of information required by contractors:

Learners should be able to discern and enumerate the types of information that contractors need to perform their functions safely and effectively within the organisation. This may encompass project specifications, safety protocols, relevant timelines, and any other essential details that contribute to the successful execution of the contract.

• Identify and explain a control tool for monitoring contractors’ work:

This outcome necessitates learners to identify and elucidate a control tool used to monitor and evaluate the work of contractors. This could involve project management software, progress tracking mechanisms, or other tools designed to ensure that the contracted work aligns with organisational standards and expectations.

• Use examples to explain approaches for stopping unsafe or unauthorized work:

Learners should be able to provide examples and explanations of approaches that can be employed to halt contractual work if it is deemed unsafe, unauthorized, or causing disruptions to business operations. This includes understanding legal and procedural steps, as well as effectively communicating the cessation of work to all relevant stakeholders.

Key Learning Areas

The unit 8600-335 Understand how to manage contracts and contractors in the workplace, focuses on boosting the ability of leaders to effectively handle contracts within the organization. Some of the main areas of learning that help to accomplish the goals of the unit include:

Understanding Contracts:

• This segment of the unit is designed to provide learners with a comprehensive understanding of the principles governing contract development. Learners delve into contract law, gaining insights into its implications in the issuance of contracts to external service providers and employees engaged on a contractual basis. The curriculum introduces different types of contracts applicable within the organization for specific projects, emphasizing the situational effectiveness of each contract type.
• Learners are equipped with the knowledge and skills to evaluate contract management approaches, assessing the scale and scope of contracts to contribute positively to organizational objectives. Additionally, this area covers the crucial aspects of monitoring and evaluating contracts, including incentives for successful delivery and penalties designed to reinforce performance.

Managing Contractors:

• Focused on ensuring contractors fulfil their designated roles and responsibilities as outlined in contractual agreements, this area of learning addresses the types of information essential to support contractors in carrying out their activities within the workplace. Learners are trained in utilizing control tools for contracts, such as permits to work, risk assessments, methods of assessment, security ID checks, and criminal background checks.
• Emphasis is placed on providing learners with the knowledge and skills necessary for robust contractor selection processes. The unit also covers the implementation of a permit-to-work system, ensuring that contractors are not only qualified for their assigned duties but also capable of contributing effectively to the organization’s objectives.

An Assessment

The evaluation of this unit involves a comprehensive written assessment, a key component that gauges the learners’ mastery of both theoretical principles and practical concepts acquired throughout the unit. The assessment task necessitates the completion of a document ranging from 2500 to 3000 words.

In this written assessment, learners are expected to showcase their understanding of the theoretical underpinnings covered in the unit, demonstrating a solid grasp of concepts related to contract management and handling contractors in the workplace. This includes an application of knowledge regarding contract law, different contract types, and effective management approaches.

Moreover, the assessment goes beyond theoretical comprehension by requiring learners to integrate practical insights gained during the course. They are expected to illustrate their ability to apply learned concepts to real-world scenarios. This dual focus on both theory and application ensures that learners not only understand the conceptual aspects but can also employ this knowledge in practical, workplace-relevant situations.

During the formative phase, supervised practice and simulated exercises can be employed to support learners in honing their skills and applying theoretical concepts in controlled settings. This phase serves as a preparatory stage, allowing learners to receive guidance and feedback as they develop their understanding of managing contracts and contractors. It ensures that they are well-equipped to tackle the complexities of the written assessment, combining theoretical knowledge with practical proficiency.

In summary, the written assessment serves as a comprehensive measure of the learners’ competence in both understanding and applying the principles covered in the unit. The inclusion of supervised practice and simulated exercises in the formative phase further enhances the learners’ preparedness for the assessment, fostering a well-rounded evaluation of their capabilities in managing contracts and contractors in a professional setting.

References

• “Contract Management: A Practical Guide for Managers” by Michael F. Losey (2021)
• “Managing Contract Risks: The Essential Guide for Contracting Professionals” by Peter Fewings (2023)
• “Contract Law for Managers: A Practical Guide” by Mark C. Montague-Smith (2022)
• “Contractual Management for Construction Projects: A Handbook for Professionals” by Richard P. Harris (2022)
• “Effective Contract Management: Strategies for Maximizing Project Success” by Robert L. Stempel and Richard A. Bales (2022)

FAQ

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