Project and Contract Financial Management

Introduction:

With increasing competition and a focus on profitability, project and contract managers are expected to not only meet technical and scheduling targets but also effectively manage project profitability and control costs. This Advanced Financial Management for Projects course delves into standard financial performance measures and explores less commonly discussed financial impacts of operational decisions. By enhancing your financial skills, you will better understand the influence of finance and accounting on project management within constraints of time, quality, and cost.

Objectives:

Upon completing this course, participants will be able to:

• Communicate effectively with accounting and financial personnel.
• Read, understand, and analyze accounting and financial data.
• Incorporate financial metrics and tools into project scheduling and cost control.
• Minimize financial risk in projects.
• Develop and apply tools to assess project financial returns.
• Understand the role of finance in organizational decisions and project evaluations.

Teaching Methodology:

• Case Studies
• Interactive Exercises
• Workshops
• Role Playing
• Simulations
• Group Discussions
• Expert Panels

Coures Outline:

Unit 1: Fundamentals of Finance

• Financial accounting concepts
• Accounting rules and standards
• Analyzing and interpreting financial reports
• Managerial accounting
• Cost vs. revenue
• Profitability measurement
• Economic Value Added (EVA)
• Return on equity
• Internal rate of return
• Time value of money
• Costing methods (direct, indirect, fixed, variable, semi-variable)
• Break-even analysis

Unit 2: Contract Profitability - Pricing

• Pricing policies and procedures
• Profit forecasting
• Cost estimating methods
• Cost-oriented pricing
• Outsider-oriented pricing
• Value-oriented pricing
• Profit objectives
• Market context
• Risk assessment
• Z-score

Unit 3: Asset Management - Cash is King

• Funds management
• Accounts receivable
• Inventory management
• Revenue recording methods
• Lease and debt management

Unit 4: Terms and Conditions (Ts & Cs) - Best Prices

• Price and value assessment
• Terms and conditions for maximizing assets
• Evaluation of contract terms and constraints

Unit 5: Cost Estimating What Works Best

• Evaluation of cost estimating methods
• Resource scheduling
• Historical data analysis
• Progress functions and experience curves
• Budgeting and estimating techniques