Introduction

This GLOMACS training course is designed to equip delegates with a comprehensive understanding of the key aspects of financial management in construction projects. The course begins with project planning, exploring funding sources, managing cash flow, and concluding project accounts. Financial considerations are often overlooked by both project and finance teams during site mobilization and the initiation of physical work.

Inadequate management of financial elements can lead to significant disruptions, project abandonment, or even legal repercussions from clients.

Led by an experienced facilitator in contract administration, this course employs interactive learning methods to enhance the educational experience. Delegates will gain technical knowledge in financial management and learn effective cash flow management strategies, with a strong emphasis on financial planning and related monetary issues.

Key Features of the Course

– Examination of project development phases and their financial implications
– Exploration of financing sources for construction projects
– Understanding how to evaluate and approve monthly progress claims
– Focus on specific clauses in the Conditions of Contract and Letters of Award
– Discussion on utilizing insurance tools, such as policies and bonds, to mitigate financial risk
– Best practices for optimizing value through improved financial management

 Objectives

By the end of this course, participants will be able to:

– Grasp the fundamental principles of project planning and execution
– Identify sources of financing for project development
– Analyze subcontractor work and manage their progress claims
– Handle Variation Orders (V.O) and their impact on project cash flow
– Utilize insurance documents to secure financial exposure for projects

Training Methodology

This training course employs a range of adult-learning techniques to ensure maximum comprehension and retention of information over the five-day program.

The facilitator utilizes active-learning strategies, group discussions, and role-playing exercises to enhance engagement. Delegates will also work on challenging case studies based on real-site scenarios, guided by the facilitator to develop effective solutions. A solid understanding of typical Letters of Award and Conditions of Contract is essential for these activities.

 Organizational Impact

The knowledge gained during this course will help staff appreciate the importance of effective financial management in projects. Specific organizational benefits include:

– Understanding the funding aspects of projects
– Learning to secure diverse funding sources for organizational advantage
– Applying appropriate financial management skills to specific projects
– Implementing risk management strategies to safeguard against financial exposure

Personal Impact

This training will provide valuable insights for industry professionals, using real-life case studies to clarify financial and funding issues. Delegates will leave with practical knowledge and skills that will enhance their contributions in the workplace. 

Who Should Attend?

This financial management training course is ideal for professionals in the construction industry involved in project planning and site management. It is designed for an intermediate level and covers various technical aspects of construction financial management.

Participants who will benefit include:

– Construction Personnel: Project Engineers, Quantity Surveyors, Project Managers, and team members from:
– Contractors, Builders, Subcontractors, Developers, and Suppliers
– Construction Professionals: Building Surveyors, Architects, and Consultants
– Legal Professionals: Lawyers, Paralegals, and Senior Officers from:
– Legal firms, government agencies, local councils, and utility companies
– Financial Professionals: Officers and Managers from banks and financial institutions

 Course Outline

Day 1: Overview of Construction Projects and Financial Requirements
– Understanding typical project and financial requirements
– Identifying sources of project funding
– Summary of Contract Administration
– Reviewing Letters of Award and Conditions of Contracts (FIDIC and others)
– Managing financial documents and project cash flow

 Day 2: Project Planning and Sources of Finance
– Addressing common project planning challenges
– Distinguishing between conventional and turnkey projects
– Exploring funding options and legal considerations
– Understanding investor relations and crowdfunding
– Discussing loan repayment and protection mechanisms

 Day 3: Project Commencement and Monthly Progress Monitoring
– Understanding mobilization, advance payments, and equipment usage on site
– Managing monthly progress claims
– Addressing retention sums and their release
– Navigating the testing and commissioning phase and associated risks

 Day 4: Insurance, Bonds, and Other Financial Instruments
– Reviewing insurance and bond requirements within contracts
– Understanding coverage details
– Exploring insurance as a risk transfer mechanism
– Connecting insurance practices to financial management

Day 5: Best Practices in Financial Management for Projects
– Identifying key technical and financial features
– Managing project completion and handover processes
– Addressing operational issues post-completion
– Understanding responsibilities during the Defects Liability Period and beyond
– Analyzing relevant case studies