Construction Financial Management

INTRODUCTION

This GLOMACS training course is presented to enable delegates to understand the key features of financial management of construction projects. It commences with the project planning stage, sourcing for funding, managing with the cash-flow and bring the project accounts to a conclusion. This are of finance is often overlooked by project and finance personnel while preparing for site mobilization and commencement of physical work on the ground.

Poor dealing of the financial aspects of the project may lead to serious project disruption and/ or abandonment or even penalty/ legal action by client.

The training course is led by an experienced contract administration facilitator who uses inter-active learning methods to enhance the learning process. The delegates will be taught the technical aspects of the financial management and shown how cash flow are handled. Focus will be given on financial planning and other related monetary issues for project handling.

This training course will highlight the following key features:

• A study of the phases of the project development and financial implication
• Considering the sources of financing for projects
• Appreciate how monthly progress claims are evaluated and approved
• Special attention on specific clauses in the Conditions of Contract and Letter of Award
• Highlight the use of insurance tools like policies and bond to protect the financial exposure
• Discussion on best practice to obtain a more effective value from better financial management

Objectives

At the end of this training course, you will learn to:

• Understand the basic principles of project planning and implementation
• Learn how to source for finance for project development
• Analyze the work by the sub-contractors and how to manage their progress claims
• Learn how to manage Variation Orders (V.O) and its application to project cash flow.
• Determine the use of insurance documents to secure the project financial exposure

Training Methodology

This training course will utilize a variety of proven adult-learning techniques to ensure maximum understanding, comprehension and retention of the information presented during the five days.

The facilitator employs active-learning techniques, group discussion and role play(s) to enhance the training session. The delegates will also be provided a few challenging case studies with actual site scenarios – and the facilitator will guide them through achieving appropriate and effective solutions. A proper understanding of typical letter of award and Conditions of Contract is essential to appreciate this activity.

Organisational Impact

The knowledge gained over the five days will enable staff to appreciate the importance of managing the financials well in a project. The specific details are presented here:

• Appreciate the funding aspect of a project
• Learn how to obtain various funding sources to obtain better benefit for the organization
• Apply correct financial management skill for specific projects.
• Use correct risk management methods to safe guard the project risk in question as this is closely related to financial exposure as well

Personal Impact

The training course will be an eye opener to industry personnel and the like. Using real life case studies and examples the facilitator efforts will clear all doubts on financial and funding issues. Delegates will take home an excellent knowledge and know-how – this will bring better results in their own work contributions when in office.

WHO SHOULD ATTEND?

This financial management training course is appropriate for various construction related industry personnel and are described further here.

This will benefit delegates who are dealing with Construction projects in terms of planning and site management. It will be pitched at an Intermediate level and various technical aspects of construction financial management will be addressed.

This training course is suitable to a wide range of professionals but will greatly benefit:

• Construction Personnel – Project Engineers, Quantity Surveyors, Project Managers and relevant team members from the following firms:
• Contractors, Builders, Sub - Contractors, Developers & Suppliers.
• Construction Professionals - Building Surveyors, Architects, Consultants
• Lawyers, Para-Legals and Managers/ Senior Officers from:
• Legal firms, solicitors offices, Government agencies and Authorities/ Local Council and Utility companies.
• Officers and Managers from Banks and Financial Institutions