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From 2005, Active Learning in Computing partners Newcastle and Durham University (ALiC), part of the UK CETL initiative, introduced a collaborative learning model of Software Engineering to level 2 Computing Science students that reflects global industry practice by focusing on cross-site software development. Assessment for this effort focuses on measuring students' development of both the technical and transferable skills associated with the practice of being a software engineer. However, it is often difficult for the student to perceive and articulate what skills they have learned during the project based on marks and feedback from lots of separate elements of coursework. In this paper, we propose that assessment of Software Engineering team projects should focus on the development of a range of competencies that could be measured in a style that relates directly to professional performance appraisal. We describe the current assessment methods we use and then outline a set of alternative competencies and appraisal methods that could be used to help staff and students better evaluate levels of achievement and skill development in qualitative terms during undergraduate team projects in Software Engineering.