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  3. Engineering Contracts and Procurement

Engineering Contracts and Procurement (ENGM90006)

Graduate courseworkPoints: 12.5On Campus (Parkville)

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Year of offer2019
Subject levelGraduate coursework
Subject codeENGM90006
Semester 2
FeesSubject EFTSL, Level, Discipline & Census Date


In this subject students will learn how to structure and work with engineering contracts to deliver and procure engineering outcomes. Students will develop a working knowledge of contract administration and gain an understanding of commercial out workings of engineering. All engineers interface commercially with engineering contracts throughout their careers and thus the application of the subject content is broad. Those seeking to work as a contractor and as a contract administrator will find direct application of this subject’s content.


Commercial management of engineering projects including the role and responsibilities of corporate managers, market analysis, structuring of procurement options, development of contractual terms and conditions, and the pricing of work.

Estimating and tendering engineering works via work breakdown structures, work method statements, risk identification and tendering principles. Contract administration and project control functions and techniques including time and money negotiations and cash flow management are also covered through the use of detailed case study material.

Intended learning outcomes


On completion of this subject the student is expected to:

  1. Assess the commercial viability of engineering projects
  2. Select an appropriate procurement strategy for a particular project
  3. Be capable of interpreting the scope and meaning of contract documents for the delivery of engineering projects
  4. Identify and manage risks and opportunities inherent in engineering projects
  5. Understand the fundamentals of contract law
  6. Conduct first principles cost estimating and tendering processes from a Contractors perspective
  7. Be able to analyse and assess tenders
  8. Understand how to administer and manage contracts based on Australian General Conditions of Contract in respect to extensions of time, variations and quality
  9. Describe dispute resolution mechanisms and their relevance in Australian and International engineering practices and jurisdictions.

Generic skills

  • Ability to undertake problem identification, formulation, and solution
  • Ability to utilise a systems approach to complex problems and to design and operational performance
  • Ability to communicate effectively with the engineering team and with the community at large
  • Ability to manage information and documentation
  • Understanding of professional and ethical responsibilities, and commitment to them
  • Ability to function effectively as an individual and in multidisciplinary and multicultural teams, as a team leader or manager as well as an effective team member
  • Capacity for lifelong learning and professional development.

Last updated: 22 August 2019