Courses Finder :
Financial Management For Projects & Contracts
Course
Accounting, Finance & Budgeting
Course 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.
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
Course 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
Course 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
Course Methodology
- Interactive lectures covering key financial and managerial accounting concepts.
- Case studies and practical examples to demonstrate pricing, costing, and cash flow management.
- Hands-on exercises for cost estimation, break-even analysis, and profitability assessment.
- Group discussions to explore contract terms, risk management, and financial decision-making.
- Use of financial tools, templates, and software for real-world application.
- Continuous Q&A and feedback sessions to reinforce learning outcomes.
Course Outline
Day 1:
- Fundamentals of Finance
- Financial accounting concepts
- Generally accepted accounting principles (GAAP)
- 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 and discounted cash flows
Day 2:
- Cost classification and analysis
- Direct vs. indirect costs
- Fixed vs. variable vs. semi-variable costs
- Break-even analysis
- Contract Profitability – Pricing
- Pricing strategy and tactics
- Profit planning
- Cost estimating
- Cost-based pricing, market-based pricing, value-based pricing
- Profit objectives and market structure considerations
Day 3:
- Follow-on business and risk management
- Z-score analysis
- Asset Management – Cash is King
- Cash flow timing and management
- Accounts receivable management
- Inventory management
- Equipment and capital asset considerations
- Revenue recognition principles
- Financing arrangements
Day 4:
- Terms and Conditions (Ts & Cs) – Best Prices
- Value, cost, and risk in Ts & Cs
- Asset-friendly vs. unfavorable Ts & Cs
- Metrics to evaluate contracts and terms
- Cost Estimating – What Works Best
- Cost estimating methods
- Planning and scheduling
- Analyzing historical data
- Experience curves and lessons learned
Day 5:
- Integrating finance, pricing, and asset management for strategic decisions
- Linking cost estimating and contract management to profitability
- Decision-making tools for financial optimization
- Case studies and practical applications
- Best practices in pricing, cost control, and cash management
- Final discussion: applying learned concepts to real-world business scenarios