Construction Financial Management

Why Choose this Training Course?

Construction Projects are capital intensive and require significant working capital to see the project through to its successful completion. In addition, there are many financial and operational risks, interest rate risk with the associated finance, delays and downtime leading to default risk, penalty payments and liquidity risk.

As a result, it is vital that those involved in the Financial Management of Construction Projects have the skills and knowledge to evaluate the financial viability of projects and manage the on-going risks to ensure that financial targets are met for the benefit of all stakeholders.

This COPEX training course will feature:

• The latest tools and techniques to evaluate financial viability
• Real world case studies from the world of Construction Finance
• Detailed analysis of the major risks
• Management of the Triple Constraints – Time, Cost & Quality/Scope
• Skills development to ensure direct benefit to participants and their organization

What are the Goals?

By the end of this COPEX training course, participants will be able to: 

• Recommend how to Finance Construction Projects from Initiation to Completion
• Evaluate the Financial Variability of Potential Construction Projects
• Successfully Manage the Finances of a Construction Project
• Provide on-going Financial Control of Construction Projects
• Identify, evaluate and manage the major Financial Risks

Who is this Training Course for?

This COPEX training course is suitable to a wide range of professionals but will greatly benefit:

• Team Leaders & Line Managers
• Surveyors
• Projects & Process Engineers & Managers
• Finance Managers & Professionals
• Professional at all levels involved in Construction Projects

How will this Training Course be Presented?

This COPEX training course will utilise a variety of proven adult learning techniques to ensure maximum understanding, comprehension and retention of the information presented. This includes:

• Interactive Case Studies from the real world/delegates company
• Discussion and Evaluation of the latest international tools & techniques
• Role play
• Pre & Post Course Assessments

Participants will also be given a detailed set of handouts and examples.

Day One: Construction Projects & Construction Finance

• The Stages of Construction Projects & Finance – from Initiation to Development & Completion
• Establishing Resource requirements
• Cost Estimation - Direct & Indirect Project Costs
• Estimating Activity Duration – PERT & Probability Analysis
• Planning and Scheduling Limited Resources
• Establishing the Project Schedule & Activities using GANNT Charts, Network Diagrams & Critical Path Analysis

Day Two: Financing Construction Projects

• Financing Capital Investment – Public & Private Equity & Debt Finance
• Recourse & Non-recourse Finance
• Special Purpose Vehicle (SPV) & Parties to Project Finance Schemes
• Calculating the Cost of Finance
• Bonds; Guarantees and Letters of Credit
• Sources of Working Capital/Operational Finance

Day Three: Evaluating the Financing Viability of Construction Projects

• The Investment Criteria
• The Investment Planning Process
• Financial Evaluation/Feasibility – Payback, NPV & IRR
• The Key Determinants of NPV and the Decision Making Process
• Sensitivity Analysis & Simulation Analysis
• Financial Targets: Return on Equity ROE, Economic Growth and Value for Money (VfM)

 Day Four: Financial Management of Construction Projects

• Managing the Triple Constraints – Balancing Time, Cost & Quality/Scope
• Cost & Budgetary Control
• Earned Value Analysis – Controlling Cost & Schedule Variances and Recovery Plans
• Managing Liquidity throughout the Project
• Managing Debt: Debt Service Coverage Ratios (DSCRs); Interest Cover etc
• Evaluating Performance & Meeting Financial Targets– Client Satisfaction, Financial Return & Social/Economic Value Added

Day Five: Risk Management of Construction Projects

• Risks & Uncertainties
• Identifying Risk: Technical, Logistical, Environmental, Economic and Financial
• Measuring & Evaluating Risks & Uncertainties – Their Likelihood & Impact
• Project Risk Strategies & Contingency Planning
• Cost Schedule Risk Analysis (CSRA) Process & Responsibilities
• Managing, Default, Interest Rate & Exchange Rate Risk Response Planning & Reporting

© 2022. Material published by Copex shown here is copyrighted.

All rights reserved. Any unauthorized copying, distribution, use, dissemination, downloading, storing (in any medium), transmission, reproduction or reliance in whole or any part of this course outline is prohibited and will constitute an infringement of copyright.