School of Engineering and Technology, (SET)
 
CE70.11 : Project Cost and Financial Management  3(3-0)
 
Course objectives:

Financial and cost management is a very important functions for running successful construction business. This course provides the skills needed to manage construction business at corporate and project levels including strategic financial management, decision making process, cost estimate, plan and control project costs on construction projects. The course is designed in three self-contained modules corresponding to different requirements in the financial and cost management process.
 
Learning Outcomes:

On completion of this course, the students would be able to :

  • Conduct economic analysis in supporting reliable decision making.
  • Identify important factors which should be considered in construction estimation.
  • Manage and evaluate financial and cost issues of construction projects.
  • Comprehend the interaction of project financial and corporate financial.
 
Pre-requisite(s):

None
 
Course Outline:

I.      Financial Management in Construction Business

  1. Construction supply chain management
  2. Principle of corporate finance and accounting
  3. Financial factors in construction company
  4. Financial performance of construction company
  5. Strategic financial management in construction

 II.    Project Economic Assessment

  1. Requirement for project economic assessment
  2. Decision making process
  3. The common methods for economic assessment
  4. The effect of depreciation on project feasibility
  5. The effect of inflation on project feasibility

 III.   Construction Cost Estimation and Control

  1. Spectrum of estimate purpose
  2. Type of estimate
  3. Important factors in construction cost estimation
  4. Project control cycle
  5. Project cost accounting and control

 
 
Laboratory Sessions:

None.
 
Learning Resources:

Textbook:

No designated text book. Class notes and handouts will be provided.
 
Reference Books:
  1. Blank, L. and Tarquin, A. (2018). Engineering Economy, 8th Edition.  McGraw Hill New York.
  2. Peterson, S.J. (2009). Construction Accounting and Financial Management, 2nd Edition. Prentice Hall, New Jersey, USA.
  3. Hefert, E. A. (2003). Techniques of Financial Analysis. McGraw Hill, USA.
  4. Peurifoy, R. L., and Oberlender, G. D. (2002). Estimating Construction Costs, 5th Edition. McGraw Hill, New York.
 
Journals and Magazines:
  1. Construction Management and Economics, Taylor & Francis.
  2. Engineering, Construction and Architectural Management, Emerald.
  3. Journal of Construction Engineering and Management, ASCE.
  4. International Journal of Project Management, Elsevier.
  5. Journal of Financial Management of Property and Construction, Emerald.

 

Others: None.
 
Time Distribution and Study Load:

Lectures:                                        45 hours

Self-Study:                                   125 hours

Presentation and Project Work:    10 hours
 
Teaching and Learning Methods:

Mass Instruction: Lectures, Class room exercises and presentations

Individualized Learning: Individual home assignments at the end of each class.

Group Learning: Group home assignments at the end of each class to practice, Case Studies to enhance the practical problem-solving skills.
 
Evaluation Scheme:

Home Assignments & Quiz: 20%

Group Project: 15%

Mid Semester Exam (Open Book): 30%

Final Exam (Open Book): 35%

“A” will be awarded if a student can demonstrate clear understanding of the topics learned in class, has integrated knowledge of the course, can apply the knowledge appropriately in the project/case study, and actively contribute in class discussion.

“B” will be awarded if a student can demonstrate basic understanding of the topics learned in class, can apply the knowledge in the project/case study, and contribute in class discussion.

“C” will be given if a student can demonstrate partial understanding of the topics learned in class, can apply the knowledge in the project/case study, and quiet during class discussion.

“D” will be given if a student demonstrates lack of understanding of the topics learned in class, cannot apply the knowledge appropriately in the project/case study, and cannot contribute in class discussion.
 
Instructor(s):
SECTION NAME