Construction Economics and Management

Course guarantor:

Lecturer:

Tutor:

Supervisor:

Department of Construction Management and Economics

Synopsis:

An AZ overview of construction engineering and management at both the corporate and project levels.

All participants, processes, and aspects of the construction industry are introduced. The course focuses on the major areas of company and project management, including business development, contracting, estimating, competitive bidding, planning and controlling of vital processes, financial management, cost control and risk management, among other topics.

Lectures are based on the real practice experience of all course lecturers and various case studies are studied and solved. The course integrates theoretical knowledge with real practice, preparing students for effective decision-making and leadership roles in construction companies and project teams.

Building Industry Game is played by all course participants throughout the semester. In this online simulation of a realistic business environment with variable conditions and demand for construction work (developed and operated by the California Polytechnic State University), students act as contractors, managing their companies and projects they compete for.

Requirements:

To obtain credit, students must attend at least 75% of tutorials and actively participate in the online Building Industry Game. The course is concluded with an in-person written.

Syllabus of lectures:

1. Challenges of the Construction Industry Overview of key management problems, trends affecting construction businesses.

2. Organization of a Construction Firm and Process Management Corporate structure, process design, coordination between departments.

3. Company Management Handbook and Operations Manual Internal procedures, decision-making, documentation, reporting systems.

4. Introduction to Accounting and Financial Fundamentals Basic accounting principles, bookkeeping, financial terminology.

5. Financial Management and Analysis Financial statements, ratios, cash flow management, financial reporting in construction companies.

6. Engineering Economics and Capital Investment Evaluation Economic assessment, return on investment, project feasibility.

7. Project Management and Stakeholder Relations Project mission, client requirements, managing key stakeholders.

8. Project Team and Supply Chain Management Building and motivating project coalitions, managing subcontractors, suppliers.

9. Contract and Risk Management Contractual frameworks, types of agreements, bonding, insurance, risk mitigation.

10. Principles of Competitive Bidding and Cost Estimation Bidding strategy, estimating techniques, bid evaluation.

11. Planning and Controlling Project Performance Scheduling methods, productivity control, performance monitoring.

12. Project Financing and Financial Risk Management Sources of capital, financial instruments, managing financial exposure.

13. Procurement Strategy, Equipment and Total Quality Management. Recap of the course.

Syllabus of tutorials:

Tutorials correspond to the contents of lectures. They provide practical case studies and examples.

Students participate in the online computer construction business and entrepreneur game provided by California Polytechnic State University, USA.

Study Objective:

To develop an understanding of the construction industry and the roles of its participants, and to gain practical knowledge in company, project, financial, and risk management.

Study materials:

!Schaufelberger, J.; Holm, L. Management of Construction Projects: A Constructors Perspective. Routledge, 2024, ISBN: 9781032495965

!Peterson, Steven J.: Construction Accounting and Financial Management, Pearson, 4.vyd., 2022, ISBN-13: 9780137526604

?Gould, F.; Joyce, N. Construction Project Management. Pearson, 2022, ISBN-13: 9780137467310

Note:

Further information:

No time-table has been prepared for this course

The course is a part of the following study plans: