Introduction:
With increasing competition and focus on corporate earnings, project and contract managers are held accountable, not just for achieving technical and scheduling goals but also for meeting profitability targets and other cost-related measures.
This advanced financial management for projects and contracts training course explores the financial metrics that are commonly used and also examines the less frequently thought-of financial 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.
Understanding Advanced Contracts and Financial Management:
In this advanced financial management for projects and contracts course, we delve into advanced contract and financial management practices. Participants in the advanced financial management for projects and contracts course will learn to apply forward-thinking financial strategies and contract management techniques to ensure their projects not only meet but exceed financial expectations. We examine case studies and real-world scenarios where advanced financial planning and contract structuring have played pivotal roles in project success.
What is a Financial Management Course:
This segment provides an overview of what participants can expect to gain from a financial management course. It clarifies the outcomes, such as a clearer understanding of financial principles specific to contract and project management and an enhanced ability to integrate these principles into daily project management practice.
By incorporating these essential financial management concepts into your professional skill set, you'll be poised to make more informed decisions that will positively impact your project's bottom line.
Targeted Groups:
- Project managers.
- Project management staff.
- Project cost controllers.
- Finance professionals.
- Contracts professionals.
Course Objectives:
At the end of this advanced financial management for projects and contracts course, the participants will be able to:
- Communicate more effectively with accounting and financial personnel.
- Read, understand, and analyze accounting and financial data.
- Expand your work in project scheduling and cost control to encompass additional financial metrics and tools.
- Minimize project financial risk.
- Develop and apply tools for comparing project financial returns.
- Understand how finance often drives organizational decisions and evaluations of project performance.
Targeted Competencies:
- Financial awareness.
- Project management.
- Risk management.
- Cost control.
- Value concepts.
Course Content:
Unit 1: Fundamentals of Finance:
- Financial accounting concepts.
- Generally accepted accounting principles.
- Reading and understanding financial statements.
- Financial analysis.
- Managerial accounting.
- Business case consideration.
- Cost vs. revenue.
- Profitability measures.
- ROS.
- ROA/EVA.
- ROE.
- IRR.
- Time value of money.
- Discounted cash flows.
- Direct vs. indirect costs.
- Fixed vs. variable vs. semi-variable costs.
- Break-even analysis.
Unit 2: Contract Profitability - Pricing:
- Pricing strategy and tactics.
- Profit planning.
- Cost estimating.
- Cost-based pricing.
- Market-based pricing.
- Value-based pricing.
- Profit objective.
- Market structure.
- Follow-on business.
- Risk.
- Z score.
Unit 3: Asset Management - Cash is King:
- Cash.
- Timing of cash flows.
- Accounts receivable.
- Inventory.
- Equipment.
- Revenue recognition.
- Financing arrangements.
Unit 4: Terms and Conditions (Ts & Cs) - Best Prices:
- Value, cost, and risk.
- Asset-friendly Ts and Cs.
- Unfavorable Ts and Cs.
- Metrics to evaluate.
Unit 5: Cost Estimating What Works Best:
- Cost estimating methods.
- Planning and scheduling.
- Making sense of historical data.
- Experience curves.
- Relationship between cost estimating and pricing.
