ICTSMB4160A Set up and operate a contractor business Unit descriptor
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1 ICTSMB4160A Set up and operate a contractor business ICTSMB4160A Unit descriptor Employability skills Prerequisite units Set up and operate a contractor business This unit describes the performance outcomes, skills and knowledge required to operate a small scale contractor operation involving an owner operator and employees installing telecommunications services. Specific legal requirements apply to small business. Requirements should be confirmed with the relevant federal, state or territory authority. This unit contains employability skills. Co-requisite units Application of the unit Competency field Unit sector ELEMENT Elements describe the essential outcomes of a unit of competency. 1. Set up a business operation 2. Provide customer service 3. Perform simple financial management tasks This unit applies to telecommunications installers who operate their own contracting business delivering installation services to major service providers. Small and micro business Telecommunications PERFORMANCE CRITERIA Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide Develop a business plan for a small business operation according to business planning guidelines 1.2. Follow the statutory and legal requirements to register a business 1.3. Ensure adequate business insurance policies are held according to business plan and to mitigate risks 1.4. Provide and maintain a vehicle through purchase, lease or hiring purchase, including managing fringe benefits tax (FBT) liabilities according to business plan 2.1. Determine and maintain a customer base to support the business plan 2.2. Analyse and determine customer expectations in relation to industry standards 2.3. Provide customer service that meets customer expectations according to enterprise standards 2.4. Monitor and evaluate performance on installations completed against industry standards 3.1. Record income and expenditure using bookkeeping tools and software according to normal accounting standards 3.2. Construct a simple financial balance sheet using banking records or supply information to accountant according to normal accounting standards 3.3. Calculate simple taxation and superannuation requirements or supply information to accountant according to normal accounting standards 3.4. Complete a Business Activity Statement (BAS) or supply data to accountant according to normal accounting ICT10 Integrated Telecommunications Training Package Page 1
2 ICTSMB4160A Set up and operate a contractor business ELEMENT 4. Cost and quote an installation PERFORMANCE CRITERIA standards 4.1. Establish the extent of work to be completed through professional and personable discussions with customer 4.2. Complete a job specification for the quote with cost estimates of time required to complete work 4.3. Estimate and include cost of materials to be used using supplier quoted prices 4.4. Determine and include a margin for profit and ongoing costs for installation according to business plan 4.5. Check finalised quote for accuracy according to established policies and procedures 4.6. Submit quote to customer within agreed timeframe REQUIRED SKILLS AND KNOWLEDGE This section describes the skills and knowledge required for this unit. Required skills communication skills to relate to customers, employees and government officers literacy skills to: develop plans using a set format interpret relevant regulatory, taxation and insurance information planning and organisational skills to schedule own work problem-solving skills to develop solutions unique to a customer numeracy skills to: interpret financial information prepare quotes technical skills to: estimate telecommunications work operate simple computer software packages Required knowledge business banking principles business registration and licensing requirements cash or accrual accounting principles Commonwealth, state, territory and local government legislative requirements relating to business operation: anti-discrimination environmental issues equal employment opportunity industrial relations OHS taxation requirements costs associated with running a business current tax rates industry codes of practice industry standard: materials and labour costs rates of pay nature of legal responsibility OHS responsibilities and procedures sources of advice and specialist services sources of information about regulatory, taxation and insurance requirements and issues ICT10 Integrated Telecommunications Training Package Page 2
3 ICTSMB4160A Set up and operate a contractor business RANGE STATEMENT The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included. Business plan may include: capital investment cash flow projection costing for labour margins for materials objectives personnel products profit margins statement of vision or mission values. Business may include: company partnership sole trader. Business insurance may include: equipment income protection professional indemnity public liability vehicle workers compensation. Business planning guidelines may include: Provide and maintain a vehicle may include: customer enterprise guidelines guidelines provided by the Australian Government Initiatives project titled business.gov.au fitting out for business operations garaging organising payments registration servicing and maintenance. Customer may include: companies external individuals internal small businesses. Quote may include: detailed costing job description of work to be undertaken single price statement of costs for work. Margin for profit and ongoing costs may be: ongoing costs: accounting insurances registration tools vehicle set in the business plan set on a job-by-job basis. ICT10 Integrated Telecommunications Training Package Page 3
4 ICTSMB4160A Set up and operate a contractor business EVIDENCE GUIDE The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package. Overview of assessment Critical aspects for assessment and evidence required to demonstrate competency in this unit Context of and specific resources for assessment Method of assessment Guidance information for assessment Evidence of the ability to: produce a business plan and set up a business define and meet customer needs perform simple financial management tasks including completing BAS, FBT and insurance documentation quote for installation jobs that cover all aspects of costing. Assessment must ensure: resources: Australian Taxation Office (ATO) guides financial management record keeping software access to industry standard labour rates and material suppliers general office bookkeeping procedures customer service guides. A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit: direct observation of the candidate performing business tasks review of business plans, records and quotes prepared by the candidate oral or written questioning on required knowledge and skills. Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example: ICTSMB4161A Operate a contractor business with employees. Aboriginal people and other people from a non-english speaking background may have second language issues. Access must be provided to appropriate learning and assessment support when required. Assessment processes and techniques must be culturally appropriate, and appropriate to the oral communication skill level, and language and literacy capacity of the candidate and the work being performed. In all cases where practical assessment is used it will be combined with targeted questioning to assess required knowledge. Questioning techniques should not require language, literacy and numeracy skills beyond those required in this unit of competency. ICT10 Integrated Telecommunications Training Package Page 4
5 ICTSMB4160A Set up and operate a contractor business EVIDENCE GUIDE Where applicable, physical resources should include equipment modified for people with special needs. ICT10 Integrated Telecommunications Training Package Page 5
6 ICTSMB4161A Operate a contractor business with employees ICTSMB4161A Unit descriptor Employability skills Prerequisite units Operate a contractor business with employees This unit describes the performance outcomes, skills and knowledge required to operate a developing business involving employees in a competitive installation environment. It involves recruiting and managing employees as well as promoting the business and maintaining business compliance. Specific legal requirements apply to small business. Requirements should be confirmed with the relevant federal, state or territory authority. This unit contains employability skills. Co-requisite units Application of the unit Competency field Unit sector This unit is relevant to installers who operate or are establishing a business employing support staff or installers. It may also apply to a business that uses subcontractors. It does not apply to novice installers and would not be appropriate in a pre-employment training program. Small and micro business Telecommunications ELEMENT Elements describe the essential outcomes of a unit of competency. PERFORMANCE CRITERIA Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. 1. Recruit employees 1.1. Define and document employee roles 1.2. Locate and tap sources of employees 1.3. Evaluate and select candidates for employment based on documented employee roles 1.4. Provide induction to employees 2. Manage employees 2.1. Assign work to employees in line with employee roles 2.2. Develop a strategy for retention of employees with rewards and incentives 2.3. Apply a payroll operation 2.4. Maintain and manage employee on-costs using a manual or computer-based system 2.5. Monitor and evaluate employee performance against business policies and standards 3. Promote the business 3.1. Identify growth opportunities for the business 3.2. Design and develop advertising material to stimulate growth of the business, including evaluating the process for establishing a website 3.3. Research the availability of a network to promote the business 4. Maintain compliance 4.1. Research and identify compliance requirements for the business 4.2. Develop and implement procedures to ensure compliance ICT10 Integrated Telecommunications Training Package Page 1
7 ICTSMB4161A Operate a contractor business with employees ELEMENT PERFORMANCE CRITERIA 4.3. Implement a system to monitor compliance 4.4. Implement actions to improve compliance performance REQUIRED SKILLS AND KNOWLEDGE This section describes the skills and knowledge required for this unit. Required skills communication skills to relate to customers, employees and contractors literacy skills to: develop plans using a set format interpret business reports problem solving skills to address common business problems numeracy skills to check and interpret financial information technical skills to: deliver contracting services within timelines and budgets manage human resources within the limits of a small contracting business manage telecommunications work Required knowledge Commonwealth, state, territory and local government legislative requirements relating to business operation: anti-discrimination environmental issues equal employment opportunity industrial relations occupational health and safety (OHS) compliance requirements within the limits of an installation service business OHS responsibilities and procedures sources of advice and specialist services RANGE STATEMENT The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included. Employee roles may include: agreed duties job role title documented job description. Sources of employees may include: advertising in public or industry magazines job agencies using industry networks and associations. Evaluate and select may include: assessment of on-the-job performance or simulated activities interview review of application details. Induction may include instruction in: job role other workplace conditions relationship to other employees safety. Rewards and incentives may cash payments include: in-kind payments. Payroll operation may include: arrangement of payment to employees documentation of agreed rates of pay ICT10 Integrated Telecommunications Training Package Page 2
8 ICTSMB4161A Operate a contractor business with employees RANGE STATEMENT Employee on-costs may cover costs for: Employee performance should include: recording of hours worked. allowances for annual and sick leave sundry other costs of employment tools and other equipment costs workers' compensation and other insurances. adjusting performance measuring performance setting agreed performance expectations. Growth may include: expansion into new regions more work and employees wider diversity of clients. Website may include: capabilities contact details examples of work testimonials. Network may include: community groups government agencies industry associations local business other specialist services past customers subcontractors suppliers. Compliance may include: technical standards: installation maintenance. ICT10 Integrated Telecommunications Training Package Page 3
9 ICTSMB4161A Operate a contractor business with employees EVIDENCE GUIDE The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package. Overview of assessment Critical aspects for assessment and evidence required to demonstrate competency in this unit Context of and specific resources for assessment Method of assessment Guidance information for assessment Evidence of the ability to: recruit employees and document roles maintain payroll management records promote business by identifying growth opportunities and advertising monitor and maintain technical compliance performance. Assessment must ensure: resources: Australian Taxation Office (ATO) guides financial management record keeping software human resource texts recruitment guides performance management tools compliance legislation, codes and policies. A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit: direct observation of the candidate performing business tasks review of business plans, records and quotes prepared by the candidate oral or written questioning on required knowledge and skills. Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example: ICTSMB4160A Set up and operate a contractor business. Aboriginal people and other people from a non-english speaking background may have second language issues. Access must be provided to appropriate learning and assessment support when required. Assessment processes and techniques must be culturally appropriate, and appropriate to the oral communication skill level, and language and literacy capacity of the candidate and the work being performed. In all cases where practical assessment is used it will be combined with targeted questioning to assess required knowledge. Questioning techniques should not require language, literacy and numeracy skills beyond those required in this unit of competency. ICT10 Integrated Telecommunications Training Package Page 4
10 ICTSMB4161A Operate a contractor business with employees EVIDENCE GUIDE Where applicable, physical resources should include equipment modified for people with special needs. ICT10 Integrated Telecommunications Training Package Page 5
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