Public Investment Construction

Course guarantor:

Lecturer:

Tutor:

Supervisor:

Department of Construction Management and Economics

Synopsis:

Public sector investment project. Evaluation of revenues and costs, income and expenses in individual phases of the life cycle of the construction project. Risk and uncertainty in investment decision-making.

Requirements:

Preparation of economic and financial evaluation of an investment project financed from public sources according to the instructions in Moodle

Attendance at exercises

Credit test

Attendance at lectures is part of the final exam grade.

Syllabus of lectures:

Public construction investments in the Czech Republic - statistics, trend of future development, link to the economic cycle

Sources of public investment financing

Legislation - Public Procurement Act, related and implementing regulations

Life cycle of the construction project - phases, documents and activities in individual phases and stages, risks and uncertainties

Feasibility study of public investment projects (case study)

Preparation of investment projects - method of implementation (DBB, DB, DBO), certification, use of BIM

Financing of investment projects incl. program financing ISPROFIN - EDS/SMVS

Methods of evaluating the economic efficiency of construction projects, CMA, CEA, CUA, CBA

Analysis of costs and benefits of investment projects - technical feasibility, sustainability, financial and economic analysis, risk

Public investments - transport constructions, case study

Public investments - building constructions, case study

Public investments - buildings for the environment, case study

Public investments - energy, case study

Syllabus of tutorials:

1. Business Case, Business Case templates – output, result, benefits, project goal. Defining the expected benefits from an investment made by a public entity.

2. Scheme of the life cycle of a project financed by public resources - designation of phases, determination of activities implemented in individual phases. Stakeholder analysis.

3. Financial and economic analysis – defining the zero, differential variant.

4. Cost-benefit analysis (CBA).

5. Analysis of the sensitivity of the investment project using MS Excel.

6. Calling for a public contract - subject of the contract, evaluation criteria, schedule.

Study Objective:

The goal of the study is to familiarize students with the issues of public and non-public construction investments.

The student knows the specifics of evaluating the economic and financial effectiveness of public projects (transportation constructions), knows how to define a project (project goal, output and result of the project), is able (knows) the legislative requirements for tenders, is able to determine beneficiaries, benefits and harms within the analysis CBA, is able to process a sensitivity analysis for the project, compile scenarios, evaluate them and interpret the results.

Study materials:

[1]Hartzell, D. and Baum, A.E. Real Estate Investment and Finance: Strategies, Structures, Key Decisions. 2nd edn. John Wiley & Sons, 2020. ISBN 978-1-1195-2609-4.

Studijní pomůcky:

[2]Guide to Cost Benefit Analysis of Investment Projects (2014), Economic appraisal tool for Cohesion Policy 2014 - 2020, European Commision, Regional and Urban Policy, 2015. ISBN 978-92-79-34796-2 https://ec.europa.eu/regional_policy/sources/docgener/studies/pdf/cba_guide.pdf

Note:

Further information:

No time-table has been prepared for this course

The course is a part of the following study plans:

• Management a ekonomika ve stavebnictví (compulsory course in the program)
• Management a ekonomika ve stavebnictví (compulsory course in the program)
• Management a ekonomika ve stavebnictví (compulsory course in the program)