Financial Management For Projects & Contracts
Overview
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 EuroMaTech Financial Management for Projects & 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. By attending this Financial Management for Projects & Contracts training course, delegates will understand: Key elements of finance and accounting relevant to good project and contract management Time value of money considerations and the importance of cash Evaluation criteria for Requests for Authorisation (RFA) Best practices to manage contact pricing Link risk to costing and performance evaluation
Objectives
This Financial Management for Projects & Contracts training course aims to enable participants to achieve the following objectives: Communicate more effectively with accounting and financial personnel Read, understand, and analyse accounting and financial data Expand work in project scheduling and cost control to encompass additional financial metrics and tools Minimise project financial risk Develop and apply tools for comparing project financial returns Understand how finance often drives organisational decisions and evaluations of project performance
Audience
Project Professionals Project Managers Contract Professionals Commercial Executives Project and Contract Personnel Who Need to Establish a Firm Understanding of Finance Would Find this Programme Extremely Beneficial
Methodology
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Outline
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.