Contractors Financial Management

Code

CE-CMP3

Version

2.0

Offered by

Civil Engineering

ECTS

Prerequisites

Basic knowledge about generic business economy are required.
Passed CMP 1 and CMP 2 or similar.

Main purpose

Upon completion of the course, participants should be able to assist in economic and managerial aspects in a construction company’s project work.

Knowledge

After completion of the course, the student must have knowledge about:
– Company economy
– Project economy
– Cash flow
– Accounts

Skills

After the course, participants should:
– Understand how the economic systems work in a construction company.
– Have knowledge of a construction company’s economic conditions - including liability and risk - and have a thorough understanding of payment systems.
– Be able to conduct a project cash flow.
– Understand the application of LEAN Construction.

Competences

Upon completion of the course, participants should:

– Be able to assist in economic and managerial aspects in a construction company
– Be able to conduct a company´s project work.
– Be able to analyze, argue, and explain the scope of a construction company’s economy.
– Be able to compare, select and argue for an appropriate way of calculating direct and indirect costs, risk and margin.

- Be able to assist in an organization managed by LEAN Construction principles.

Topics

Company level:
– Key ratios of the financial statement
– Accounts
– Cost analysis
– Cash budgeting
– Investment calculations according to different methods
– Calculation and bidding

Project Level:
– Estimate
– Charts of accounts
– Economics, budgets and calculation principles
– Cash budget
– Managing of own production
– Managing of subcontractors
– Payment systems
– Accounts analysis

Teaching methods and study activities

There is only teamwork involved. All assignments are prepared in self-managing teams.
The teaching method will be a variety of lectures, self-study, video-tutorials, and supervision according to the Student Activity Model.

The course is a 5 ECTS course, hence the workload for the student is 137 hours.
The course is allocated 54 lessons with lecturer present.

Detailed plan of lecturing is provided at the beginning of the course.

Student Activity Model

The workload is divided as follows:
Category 1, Initiated by the lecturer with the participation of lecturer and students: 47 lesson – 34%
Category 2: Initiated by lecturer with participation of students: 63 hours – 46 %
Category 3: Initiated by students with participation of students: 20 hours – 15 %
Category 4: Initiated by students with the participation of lecturer and students: 7 hours – 5%

Resources

•– Søren Fisker: A memorandum about construction Economy, January 2012.
– A memorandum about Account Analysis, June 2012.
– A memorandum about Business Costs, June 2012.
– A memorandum about Investment Evaluation Methods, June 2012.
– Uploads through the semester

Evaluation

Examination

Prerequisites:
General active participation in class.
Teams must conduct presentations of the assignments in class.

Each team must also act as opponent in these presentations.

Type of examination:

Students are graded based on course assignments carried out during the course.

5 sets that each provide 20% of the final grade.

Allowed tools:

All tools allowed.

Re-exams:

Individual oral exam with an internal examiner. Exam is without preparation based upon a subject found by draw (not course assignments).

Grading criteria

Grading based on the Danish 7-point scale.

Additional information

Responsible

Lars Hyldedal

Valid from

8/1/2019 12:00:00 AM

Course type

Civil Works

Keywords

Contractors Project Economy. Process management with the use of Last Planner SystemTM.