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| CE 567 Risk and Financial Management in Construction |
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Fundamental concepts in financial and risk analysis in construction; accounting and financial metrics in construction; risk assessment and risk management in construction including the cost of risk, decision making strategies, the role of sureties, effects of risk in project delivery methods and contract types; risk effects in project financing including a review of financing sources, considerations for financing local and international projects; and the impact of financial and risk management in strategic planning in construction. 3 credit hours. |
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Prerequisite |
Graduate Standing in CEM, Advanced Senior and/or PBS standing at the discretion of the instructor. This class is intended for students pursuing a Masters or Doctoral degree in Construction Engineering and Management. This course may also be appropriate for students in other disciplines who have adequate academic background and experience. The course is therefore open to students with graduate standing in the Department of Civil Engineering. Advanced undergraduates, in their senior year in Construction Engineering and Management or in Civil Engineering, with at least a "B" average overall and at least a "B" average in their major courses, who have credit for CE 463, CE 464, either CE 465 or CE 466, or equivalent courses, and one course in accounting, are also eligible. Other students may be admitted at the discretion of the instructor. Students in this class are assumed to have a fundamental understanding of Construction Engineering and at least an introductory understanding of accounting terminology and concepts. |
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Course
Objectives |
This course prepares students to use fundamental risk and financial principles and tools to analyze important issues and processes in construction engineering and management. The course combines lectures, short seminars, case studies, homework and short paper/projects to fulfill its objectives.
The course reviews fundamental concepts in financial and risk analysis in construction and a detailed review of: accounting and financial metrics in construction, risk assessment and risk management in construction including the cost of risk, decision making strategies, the role of sureties, effects of risk in project delivery methods and contract types, risk effects in project financing including a review of financing sources, considerations for financing local and international projects, and the impact of financial and risk management in strategic planning in construction. At the completion of the course, students will be able to: 1. Apply time value of money and cash flow principles in construction projects2. Interpret financial statements and metrics in construction. 3. Explain formal methods of risk assessment in construction. 4. Evaluate the features and benefits of bonding and insurance as risk management tools in construction 5. Differentiate project delivery methods by the type of risk exposure and apply suitable contract types for a given set of project characteristics. 6. Identify the needs, constraints and processes of financing projects in local and international environments. 7. Use risk and financial management tools in developing strategic plans for a construction enterprise. 8. Identify basic mechanisms to minimize legal exposure in a construction environment. |
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Requirements |
The course requirements include two 75-minute exams, one final exam, a number of short problem sets and short project assignments, and a 10-page paper on risk and financial management applied to construction engineering and management |
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Computer
and Internet Requirements |
NCSU has recommended minimum specifications for computers used for classes. Depending on your computer needs, we recommend your computer meet or exceed the following minimum specifications below. PCs must have an Intel-compatible 800 MHz processor, 256 MB RAM, 8 GB hard drive with 1 GB free space available, 256 Color Display, CD-ROM drive, 800x600 (min.) video adapter, sound card, and speakers. The operating system should be Windows 2000 or XP. Real One Player Basic (available free online) and high speed Internet connection such as cable, DSL, T1 or LAN will be required for EOL courses. MAC users must have a G3 processor with firewire and USB factory built-in, 256 MB RAM, 10 GB with 1GB free space available, 256 Color Display, CD-ROM drive, 800x600 (min) video adapter, sound card, and speakers. The operating system must be MacOS 10.3 (minimum) along with the above RealOne and Internet specifications above. For more detailed information on computer specifications and recommendations, please refer to our website at: http://engineeringonline.ncsu.edu/currentstudents/computeraccess.htm |
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Textbook |
Financial Management and Accounting for the Construction Industry (Construction Financial Management Association), NCSU bookstore price ~ $120 (can also be purchased on-line from CFMA) -Class Handouts ~ students will be required to print PDF files, an estimated copying costs $ 35-$40 (spread throughout the semester) -Any book/reference discussing Basic Accounting Principles and Corporate Finance -Any book/reference on Bonding and Insurance for Construction |
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Instructor |
Roberto A. Nuñez, P.E., MBA. Phone: (919)515 8408 Dr. Michael L. Leming, Associate Professor Phone: (919)515 7823 Guest Speakers |
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Registration |
All students must register through the Engineering Online registration site at http://www.ncsu.edu/project/engonline/index.php. You do not have to be admitted to a degree program to enroll in an online course. However, you must have completed a bachelor’s degree in engineering, computer science, or related area from an accredited institution. Full-time, employed individuals are limited to enrollment in two graduate courses for each semester. On-campus degree seeking students must have approval from their Director of Graduate Programs to register for an Engineering Online course. Tuition and Fees per credit hour:
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