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Financial Management for Projects and Contracts
Overview:
Introduction:
This training program explores the financial metrics that are commonly used and also examines the less frequently thought-of economic impact of typical operating decisions and actions. Building on your competencies, you will examine the inner mechanics of how finance and accounting can impact your project.
Program Objectives:
At the end of this program, the participants will be able to:
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Enhance communication with accounting and financial personnel, and analyze accounting and financial data effectively.
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Expand project scheduling and cost control by incorporating additional financial metrics and tools to minimize project financial risk.
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Develop and apply tools for comparing project financial returns, understanding how finance influences organizational decisions and project performance evaluations.
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Learn standard financial analysis tools linking project management to corporate strategic goals, with case studies and exercises to apply these techniques effectively.
Targeted Audience:
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Project and Contract managers.
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Financial managers.
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Procurement managers and specialists.
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Project coordinators and administrators.
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Business analysts.
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Engineers and construction managers working on projects.
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Anyone else responsible for the financial aspects of project management and contract administration.
Program Outlines:
Unit 1:
Fundamentals of Finance:
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Financial accounting concepts and generally accepted accounting principles, including reading and understanding financial statements.
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Financial analysis and managerial accounting techniques, along with business case considerations.
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Exploring cost versus revenue, profitability measures such as ROS, ROA/EVA, and ROE.
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Understanding the time value of money, discounted cash flows, and fixed versus variable versus semi-variable costs.
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Examining direct versus indirect costs and conducting break-even analysis.
Unit 2:
Contract Profitability - Pricing:
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Pricing strategy and tactics, including profit planning and cost estimating.
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Exploring cost-based, market-based, and value-based pricing methods.
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Setting profit objectives and understanding market structure.
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Assessing follow-on business opportunities and managing risks effectively.
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Utilizing financial metrics like Z score for risk assessment.
Unit 3:
Asset Management - Cash is King
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Cash and Timing of cash flows.
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Accounts receivable.
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Inventory. and Equipment.
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Revenue recognition.
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Financing arrangements.
Unit 4:
Terms & Conditions (Ts & Cs) - Best Prices:
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Value, cost, and risk.
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Asset-friendly Ts and Cs.
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Unfavourable Ts and Cs.
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Metrics to evaluate.
Unit 5:
Cost Estimating What Works Best:
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Cost estimating methods.
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Planning and scheduling.
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Making sense of historical data.
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Experience curves.
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Relationship between cost estimating and pricing.