Financing, Investing, Contracts

Course guarantor:

Lecturer:

Tutor:

Supervisor:

Department of Construction Management and Economics

Synopsis:

An introductory course in financial management with a specific focus on the construction industry. Emphasis is placed on financing and accounting methods at the company, division, and project levels. The course explains the interconnection between financial management and the execution of construction projects within the broader framework of construction contracts (with emphasis on standard contracts) and elements of project management. The content includes the application of accounting concepts in the financial management of construction firms, investment strategies, methods of investment planning and evaluation, management of investments in machinery and equipment, investment centers, and the role of contractual relations and contracting systems. The course also provides a detailed explanation of the FIDIC Red Book, along with a comparison to the FIDIC DesignBuild and EPC/Turnkey Silver Book.

Requirements:

Knowledge of accounting terms in the financial management of a construction company, investment strategy of a construction company, methods of investment planning and evaluation, the role of contractual relations.

Syllabus of lectures:

1 Introduction to the study of construction finance and management

2 Current trends in construction management / strategic management

3 Financial management in the context of a construction company management system

4 Capital investments in machinery and equipment, time value of money

5 Financial reporting according to IAS standards

6 Percentage-of-completion method for revenue and profit recognition in construction projects

7 Percentage-of-completion method case study

8 Cash flow management of a construction company and project

9 Case studies on financial management of large construction companies

10 Standard contracts in construction

11 Standard contracts FIDIC Red/Yellow Book

12 Contracting systems EPC/EPCM, PPP, ECI, CMA, CMaR, DB, DBB, etc.

13 Sustainably profitable construction company

Syllabus of tutorials:

The course syllabus corresponds to the course content - all lecture topics are practiced using examples/case studies.

Study Objective:

To prepare students for financial management at construction company level, division level and construction site level, including contract / project management relations.

Study materials:

!Tomek, A.: Finanční řízení ve stavebním podniku, ČVUT, 2000, ISBN 8001021513, aktualizovaná elektronická verze 2024

!Bragg, Steven M.: Construction Accounting: A Practitioners Guide (4th ed.). AccountingTools, 2023, ISBN-10 1642211044

?Practising Law Institute. Building Better Construction Contracts (2022). PLI Press, 2022, ISBN 9781402442766

?Peterson, Steven J.: Construction Accounting and Financial Management, Pearson, 4th ed., 2022, ISBN-13: 9780137526604

?Scholleová H.,Štamfestová P.: Finance podniku - Sbírka řešených příkladů a otázek, Grada, 2015, ISBN:978-80-247-5544-1

Note:

Further information:

No time-table has been prepared for this course

The course is a part of the following study plans: