Construction Management

Construction Financial Management

Construction projects are capital-intensive and demand substantial working capital to reach successful completion. They are also fraught with various financial and operational risks, including interest rate fluctuations, delays leading to default risk, penalty payments, and liquidity challenges. Therefore, it is crucial for professionals involved in the Financial Management of Construction Projects to possess the skills and knowledge needed to assess the financial viability of projects and effectively manage ongoing risks. This ensures that financial targets are achieved, benefiting all stakeholders involved. This Construction Financial Management training course will help participants know how to finance construction projects from initiation to completion.

CM-019Munich - GermanyConstruction Management
Course schedules
Upcoming dates Classroom
Start date End date Location Fee Registration
Munich - Germany
€1,725 + VAT
→
Amsterdam - Netherlands
€2,125 + VAT
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Istanbul - Türkiye
€1,425 + VAT
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Frankfurt - Germany
€1,625 + VAT
→
Rome - Italy
€2,125 + VAT
→
Kuala Lumpur - Malaysia
€1,400 + VAT
→
Barcelona - Spain
€1,925 + VAT
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London - United Kingdom
€2,100 + VAT
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Why Attend

Construction projects are capital-intensive and demand substantial working capital to reach successful completion.

They are also fraught with various financial and operational risks, including interest rate fluctuations, delays leading to default risk, penalty payments, and liquidity challenges.

Therefore, it is crucial for professionals involved in the Financial Management of Construction Projects to possess the skills and knowledge needed to assess the financial viability of projects and effectively manage ongoing risks.

This ensures that financial targets are achieved, benefiting all stakeholders involved.

This Construction Financial Management training course will help participants know how to finance construction projects from initiation to completion.

Course Objectives
  • 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
Designed for

This program is intended for professionals involved in Construction Management.

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

This 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.

Course content
Day1

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
Day2

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
Day3

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)
Day4

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
Day5

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
The certificate

SPARK Training Certificate of Completion is awarded to participants who attend and complete the full training course.

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