15348 Project Finance and Analysis
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particular session, location and mode of offering is the authoritative source
of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.
Subject handbook information prior to 2025 is available in the Archives.
Credit points: 6 cp
Result type: Grade and marks
Requisite(s): 144 credit points of completed study in 144.0000000000 Credit Points spk(s): C10413 Bachelor of Design Architecture Master of Architecture
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.
Description
This is a scenario and problem-based subject delivered through an intensive workshop and supported by online learning materials. The subject focuses on the financial aspects of project management. It is aimed at meeting the needs of project managers, who have not had in-depth financial experience, to understand the economic and commercial aspects of project finance. The subject includes a focus on financial concepts in relation to projects, financial evaluation of projects, risk management of project finance transactions and complex transactions found within projects. Real-life case studies are used to help deliver the key concepts, helping students understand and apply theory to practical situations.
Subject learning objectives (SLOs)
On successful completion of this subject, students should be able to:
| 1. | Understand key project financial concepts and their practical application |
|---|---|
| 2. | Assess a range of typical project finance arrangements |
| 3. | Evaluate financial aspects of projects and capital budgeting decisions |
| 4. | Identify and manage risk relating to project finance transactions |
| 5. | Demonstrate an understanding of project finance including private finance initiatives and private partnerships |
| 6. | Integrate and apply project financial concepts and knowledge through a case study |
Course intended learning outcomes (CILOs)
This subject also contributes to the following Course Intended Learning Outcomes:
- Communicate effectively through written communication in projects at a professional level (Written Communication) (C.2)
- Source and apply tools and techniques to meet contextual demands (Technique Application) (I.1)
- Develop and adapt project management knowledge to meet contextual demands (Knowledge Adaptation) (I.2)
- Apply and extend advanced project management knowledge (Advanced Knowledge) (P.2)
- Actively reflect on, and improve, project practice (Practice Improvement) (P.5)
- Lead and manage project teams, and work as a project team member at a professional level (Teams and Leadership) (P.6)
- Think critically and synthesise complex data (Critical Engagement) (R.1)
Contribution to the development of graduate attributes
The term CAPRI is used for the five Design, Architecture and Building faculty graduate attribute categories where:
C = communication and groupwork
A = attitudes and values
P = practical and professional
R = research and critique
I = innovation and creativity.
Course intended learning outcomes (CILOs) are linked to these categories using codes (e.g. C-1, A-3, P-4, etc.).
Teaching and learning strategies
Delivery of this subject will include lectures on key concepts, presentations by guest lecturers on applications of concepts, and active learning opportunities through targeted activities that will be integrated throughout the sessions through group work and in-class presentations by student groups. In addition, some flipped learning strategies have been integrated into the subject learning philosophy, including the use of pre-readings and/or multimedia content which must be completed prior to the first session. These pre-readings will lead to a pre-workshop assignment to assess your understanding and preparation for the sessions. In addition, online reference and resource material is provided that will be available throughout the semester, and relevant topics that relate to subject topics will also be posted from time to time to demonstrate relevance on the subject content.
Detailed information on pre-readings, asessments and relevant online resources can be found on Canvas.
Marks and feedback will be recorded in Review.
Individual marks for group assessments will be calculated based on peer review and will directly depend on individual contribution and performance.
Content (topics)
Topics will include:
- Project finance fundamentals
- Time/money relationship and evaluation methods
- Investment, return and financial products
- Project finance structures
- Asset management and relationship
- Project finance and risk management
- Decision theory, game theory and statistics in project finance
- Project finance case studies
- Simulation Exercise
Assessment
Assessment task 1: Quiz
| Intent: | Understand basic financial concepts | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Objective(s): | This task addresses the following subject learning objectives: 1 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): I.2 and R.1 | ||||||||||||
| Type: | Quiz/test | ||||||||||||
| Groupwork: | Individual | ||||||||||||
| Weight: | 10% | ||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Assessment task 2: Group Exercises
| Intent: | Working in teams to solve specific problems related to topics covered in class. | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Objective(s): | This task addresses the following subject learning objectives: 1, 2 and 6 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): I.1, I.2, P.2, P.6 and R.1 | ||||||||||||||||||||||||
| Type: | Exercises | ||||||||||||||||||||||||
| Groupwork: | Group, group assessed | ||||||||||||||||||||||||
| Weight: | 30% | ||||||||||||||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Assessment task 3: Essay
| Intent: | Demonstrate knowledge and competencies in the area of project finance and analysis. | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Objective(s): | This task addresses the following subject learning objectives: 3, 4, 5 and 6 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): C.2, I.1, P.5 and R.1 | ||||||||||||||||||||
| Type: | Essay | ||||||||||||||||||||
| Groupwork: | Individual | ||||||||||||||||||||
| Weight: | 60% | ||||||||||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Minimum requirements
The DAB attendance policy requires students to attend no less than 80% of formal teaching sessions (lectures and tutorials) for each class they are enrolled in to remain eligible for assessment.
Required texts
Pretorius, F. (2008). Project Finance for Construction and Infrastructure: Principles and Case Studies. 1 Edition. Wiley-Blackwell.
Recommended texts
Esty, B.C. (2004). Modern Project Finance: A Casebook, John Wiley, New York.
Hendrickson, C. (1989). Project management for construction fundamental concepts for owners, engineers, architects, and builders, Prentice Hall, New Jersey.
Lowe, D. & Leiringer, R. (Eds.), (2006). Commercial Management of Projects: Defining the Discipline, Blackwell,Oxford.
Lutchman, C. (2010), Project Execution: A Practical Approach to Industrial and Commercial Project Management,
5th edn., Thomson Learning , Boston.
Turner, J.R. (1995). The Commercial Project Manager: Managing Owners, Sponsors, Partners, Supporters, Stakeholders, Contractor and Consultants, McGraw Hill, London.
References
Chapman, C.B. (2012). How to manage project opportunity and risk why uncertainty management can be a much better approach than risk management : the updated and re-titled 3rd ed of Project risk management, processes, insights and techniques, Wiley, Chichester.
Chinyio, E. & Olomoliye, P. (2010). Construction Stakeholder Management, Blackwell, Oxford.
March, C. (2009). Finance and Control for Construction, Spon Press, New York.
Flanagan,, R. & Norman, G. (1993). Risk Management and Construction, Blackwell: Oxford,
Larson E. & Gray C. (2010) Project Management: the managerial process, 5th edn, McGraw Hill.
Lewicki, R.J. Barry, B. & Saunders, D.M. (2010). Essentials of Negotiation, 5th edn.,McGraw Hill, Boston.
Oakes, G. (2008). Project Reviews, Assurance and Governance Gower, Aldershot, UK.
PMI (2008), A Guide to the Project Management Body of Knowledge, 4th edn. Project Management Institute, Newtown Square, PA.
Pryke, S. and Smyth, H. (2008) (Eds.) Collaborative Relationships in Construction: Developing Frameworks and Networks, Wiley-Blackwell, Oxford.
Pryke, S. (2009) Construction Supply Chain Management: Innovation in the Built Environment, Wiley-Blackwell, Oxford, UK.
Walker, D. & Hampson, K. (Eds.). (2003). Procurement systems and structures, in Walker, D. & Hampson, K. (Eds.), Procurement Strategies: A Relationship-based Approach, Blackwell, UK, 11-29.
Watson, P. & Howarth, T. (2011). Construction Quality Management: Principles and Practice, Spon Press, New York.
Yescombe, E.R (2007) Public-Private Partnerships: Principles of Policy and Finance, Butterworth-Heinemann, Oxford.