Construction Project Financial Management

Description

Construction project financial management is a professional training course designed to develop the knowledge and practical skills for construction professionals in planning, controlling, monitoring, and optimizing the financial performance of construction projects. The training course focuses on cost control, cash flow management, budgeting, financial reporting, contract administration, and financial risk management throughout the project life cycle. This training course presents aspects of construction financial management that aims to explain the essence of construction financial management and its components. It is a document which should assist managers in developing and maintaining an adequate system of financial management and control in their construction Projects. It is a reference document for every aspect of financial management of civil work projects. This training course is based on a review, consolidation and compilation of current general and construction specific best practice methods, procedures and guidelines available for all civil work projects. Financial management in construction is designed to expose the trainer to the financial issues of determining the monetary resources needed by construction firm, the mix of these resources, the sources and uses of funds, the benefits, risks and costs associated with different types of resources and financing. Financial management is the use of a company’s financial resources. This includes the use of cash and other assets such as equipment. The training course is applicable to projects under design bid build and design build delivery methods. In this professional training course, practical applications, case studies and project-based scenarios are included. Topics covered include the following:

• Introduction describes the purpose, beneficiaries, objectives, structure, style and scope of the manual
• Overview of construction financial management defining the concept of general and specific financial management terms, principles of financial management, tools of financial management and planning and budgeting
• Construction project financial management processes inputs, mechanisms, controls/constraints and outputs
• Processes knowledge areas, list, definition, instructions, procedures, analysis, examples, terms, interpretations and formulas – as an integral part of this manual

Outcomes

Upon the completion of this training course, participants will be able to:

• Understand the importance of financial management
• Understand board financial responsibilities of the project manger
• Understand accounting for financial resources, managing costs and profits, managing cash flows, and making financial decisions.
• Recognize the importance of cash flow to the contractor and how the project manager can positively or negatively impact project cash flow
• Understand different types of financing decisions
• Evaluate construction firms’ financial statements and key ratios
• Understand financial reporting, both external and internal
• Review the financial statements to ensure that the company’s financial structure is in line with the rest of the industry and trying to identify potential financial problems before they become a crisis
• Provide reasonable assurance that the resources/funds are being used effectively and efficiently for their intended purpose.
• Improve creditability and control over data integrity through effective internal control arrangement
• Enhance transparency and promote accountability
• Analyze financial performance of individual projects using project cost accounting reports and formulate recommendations that would lead to duplicating success and avoiding undesirable project outcomes

Target audience

The target audience for this training course includes construction project managers, civil engineers, architects, quantity surveyors, contract administrators, planning engineers, project control engineers, consultants, contractors, developers, procurement professionals, and client representatives.