Mastering Financial Management in Projects and Contracting: A Complete Mastery
Course Overview
With increasing competition and rising expectations on corporate earnings, today’s project and contract managers are held accountable not only for achieving technical and scheduling goals but also for ensuring profitability and meeting strict cost-related measures.
This programme provides a **comprehensive understanding of financial management in the context of projects and contracts**, exploring both traditional financial metrics and the often-overlooked financial implications of daily operational decisions. By the end of this course, participants will be equipped to **make better financial decisions, communicate effectively with finance professionals, and enhance project profitability and value creation**.
Course Objectives
By attending this programme, participants will be able to:
* Communicate more effectively with accounting and financial personnel.
* Read, interpret, and analyse accounting and financial data.
* Integrate financial metrics into project scheduling and cost control.
* Minimise financial risks in projects and contracts.
* Develop and apply tools to compare project financial returns.
* Understand how finance drives organisational decision-making and project evaluation.
Who Should Attend
This programme is designed for:
* Project Managers, Contract Managers, and Engineers involved in project delivery.
* Finance and Accounting Professionals supporting project/contract teams.
* Business Analysts, Cost Controllers, and Planning Specialists.
* Any professional seeking to enhance their understanding of financial management in projects and contracts.
Methodology
The course uses a **practical, hands-on approach** combining:
* Expert-led presentations.
* Case studies and real-world examples from projects and contracts.
* Group discussions and interactive problem-solving.
* Exercises using financial data to apply tools and techniques directly.
Course Benefits
Participants will gain the ability to:
* Link technical project management with financial performance.
* Evaluate and select pricing strategies for contract profitability.
* Understand the financial consequences of project decisions.
* Improve financial communication between technical and finance teams.
* Enhance confidence in financial data analysis and decision-making.
* Drive both project success and organisational value creation.
Course Outline
Day One – Fundamentals of Finance
* Core financial accounting concepts.
* GAAP principles.
* Reading and analysing financial statements.
* Financial and managerial accounting in projects.
* Cost vs. revenue: profitability measures (ROS, ROA/EVA, ROE, IRR).
* Time value of money and discounted cash flows.
* Direct, indirect, fixed, variable and semi-variable costs.
* Break-even analysis.
Day Two – Contract Profitability & Pricing
* Pricing strategies and tactics.
* Profit planning and cost estimating.
* Cost-based, market-based, and value-based pricing.
* Setting profit objectives.
* Market structure and risk considerations.
* Using Z-score to evaluate financial risk.
Day Three – Asset Management: Cash is King
* Importance of cash and timing of cash flows.
* Accounts receivable and inventory management.
* Managing project equipment and resources.
* Revenue recognition in contracts.
* Financing arrangements and cash flow optimization.
Day Four – Terms & Conditions (Ts & Cs): Securing Value
* Understanding value, cost, and risk in Ts & Cs.
* Structuring asset-friendly terms.
* Identifying unfavourable terms and their impact.
* Metrics to evaluate and negotiate better outcomes.
Day Five – Cost Estimating & Pricing Alignment
* Effective cost estimating methods.
* Integrating planning and scheduling.
* Using historical data for accurate projections.
* Experience curves and cost reduction insights.
* Aligning cost estimating with pricing for profitability.
