Module Provider: |
School of Construction Management and Engin |
Number of credits: |
10 [5 ECTS credits] |
Level: |
M |
Terms in which taught: |
Autumn |
Module Convenor: |
Mr
K
Hutchinson |
Pre-requisites: |
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Co-requisites: |
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Modules excluded: |
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Module version for: |
2006/7 |
Aims:
Participants will benefit from an enhanced understanding of the way in which the principles of project management are applicable to the construction industry. This will be realised both through the development of high-level conceptual skills and a practical appreciation of relevant tools and techniques. The module will be of immediate benefit in extending the capabilities of practising project managers. Long-term benefits will include an enhanced capability to interact with clients and to match different project management approaches to different situations. |
Assessable learning outcomes:
At the end of this module the delegate will have gained:
An understanding of financial balance sheets and profit & loss accounts
A familiarity with the use of financial ratios
An introductory grounding in the principles of management accounting
An appreciation of property as an investment
An insight into the role of appraisal within the development process |
Additional outcomes:
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Outline content:
Financial Statements I: The Balance Sheet
Definition and structures of assets and liabilities. The fundamental accounting equation. Alternative formats of the balance sheet; company law formats. Profit measured as an increase in net assets. Accounting conventions and principles which govern the inclusion and valuation of assets in the balance sheet.
Financial Statements II: Profit Measurement
The nature and structure of a trading and profit and loss account. Recognition of revenues and expenses. The distinction between cash and accruals accounting. Capital and revenue expenditures. Manufacturing accounts. Adjustment of a profit and loss account for deprecation; bad debts; general and specific provisions. Company law formats and the appropriation account. Accounting conventions and principles which govern the preparation of the profit and loss account.
Financial Statements III: Cash Flow Statement
The distinction between profit and liquidity. The preparation of a cash flow statement from the profit and loss account and balance sheet of a business and its interpretation.
Financial Analysis
The use (and limitations) of ration analysis in the interpretation of financial statements. Calculation and interpretation of the main classes of ratio (profitability, activity, liquidity, financial structure and investment).
Costs Concepts and Classification
Basic cost distinctions (direct/indirect; variable/semi-variable/fixed etc.). Product costing, ABC systems. Contribution and break-even analysis. Incremental and relevant costs.
Investment Appraisal
Investment theory and valuation models. The role of property within an investment (multi-asset) portfolio.
Property valuation and appraisal. The application of discounted cashflow to valuations and calculation of worth; Net present value (NPV); internal rate of return (IRR).
Traditional and discounted cashflow valuations of freehold property, implied and explicit growth; the relationship between initial yields and equated fields. Concepts of price, value and worth.
Development Appraisal
The role of appraisal within the development process. Traditional residual valuation; cashflow residuals; discounted cashflow residuals.
Measures of profitability: IRR and NPV; profit ratio; sensitivity analysis; scenario analysis; development funding.
Equity and debt financing; return on capital employed.
Tort law in the construction context |
Brief description of teaching
and learning methods:
The module will be taught by a combination of lectures, tutorial discussions and case study work. A particular emphasis will be placed on discussion and the challenging of accepted concepts. Preliminary reading will be required for students with no previous experience. The module will be supported by Internet-based learning material. |
Contact hours:
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Autumn |
Spring |
Summer |
| Lectures |
24 |
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| Tutorials/seminars |
6 |
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| Practicals |
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| Other contact (eg study visits) |
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| Total hours |
30 |
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| Number of essays or assignments |
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| Other (eg major seminar paper) |
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Assessment:
This module will be assessed by means of a written examination
Examinations:
Examinations will be held once a year. Each examination will consist of a two-hour paper.
Requirements for a pass:
To pass the MSc, students must attain an average mark of 50% in each module
Reassessment Arrangements :
Students are permitted two attempts in each examined element of the course. If a participant fails an examination twice, the Senate Committee on Failures in Examinations will decide whether he or she will be allowed an exceptional third attempt. |
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