About this course: The final course of the specialization expands the knowledge of a construction project manager to include an understanding of economics and the mathematics of money, an essential component of every construction project. Topics covered include the time value of money, the definition and calculation of the types of interest rates, and the importance of Cash Flow Diagrams.
Created by: Columbia University
Taught by: Ibrahim Odeh, Ph.D., MBA, Instructor, Department of Civil Engineering and Engineering Mechanics, Columbia University
Director of Research and Founder, Global Leaders in Construction Management
| Basic Info | Course 4 of 4 in the Construction Management Specialization |
| Level | Beginner |
| Language | English |
| How To Pass | Pass all graded assignments to complete the course. |
| User Ratings |
Syllabus
WEEK 1
Introduction To The Construction Finance Course
Professor Ibrahim Odeh provides an overview of the Construction Finance course, and introduces the guest speakers.
1 video, 1 reading
- Reading: Course Survey
The Mathematics of Money
Professor Ibrahim Odeh discusses the Mathematics of Money beginning with a definition of the Time Value of Money. Calculating simple and compound interest rates are covered along with distinguishing between nominal and effective interest rates. Illustrated in this module is drawing a cash flow diagram.
12 videos
- Video: Computing Interest / Simple Interest Calculations
- Video: Compound Interest Calculations
- Video: Simple vs. Compound Interest Rate Example / Nominal and Effective Rate
- Video: Nominal Interest Rate Example and Minimum Attractive Rate of Return
- Video: Present and Future Value of Money
- Video: Future Value of a Uniform Series
- Video: Uniform Series
- Video: Uniform Series: A deeper dive
- Video: Equations for Uniform Series
- Video: Net Present Value (NPV) Example
- Video: Internal Rate of Return (IRR) Example
- Discussion Prompt: Mathematics of Money
Graded: Mathematics Of Money
WEEK 2
Real Estate Finance for Development Projects
Professor Anthony Webster introduces real estate finance providing an overview of the real estate project lifecycle, a discussion on zoning code parameters, and examples of estimating the sales price of a property.
12 videos
- Video: Feasibility Study Example -- Project Parameters
- Video: Development Costs
- Video: "Comps" based Property Sale, Tax, Gain and Return
- Video: "Cap Rate" based Sale, Tax Gain and Return
- Video: Preview of "Discounted Cash Flow" Methods for Gain and Return
- Video: Framework for "Discounted Cash Flow" (DCF) Analysis
- Video: "Net Present Value" DCF Method for Project Evaluation
- Video: Net Present Value (NPV) Examples
- Video: "Internal Rate of Return" (IRR) Method for Project Evaluation
- Video: NPV and IRR Analysis with Excel
- Video: Changing and Comparing Compounding Periods
- Discussion Prompt: Deciding on a project
Graded: Real Estate Finance Development Projects
Graded: Feasibility Study: Estimating The Sales Price
WEEK 3
Financial Plans for Development Projects
Professor Anthony Webster provides an in-depth look at designing and building commercial real estate by looking at financial plans. The module ends with a deep dive into decision tree analysis.
12 videos
- Video: Debt Financing of Real Estate Projects
- Video: Construction Loan Example
- Video: Net Comprehensive Cash Flows for Sponsor and Lender
- Video: DCF Project Evaluation for Sponsor and Lender
- Video: Introduction to Decision Tree Analysis - 1
- Video: Introduction to Decision Tree Analysis - 2
- Video: Decision Tree Example - Overview
- Video: Solving the Example in Excel
- Video: Analysis of the Tree Results
- Video: Decision Tree Example with Time Value of Cash
- Video: Analysis of the Tree Results with Time Value Considered
- Discussion Prompt: Designing and Building Commercial Real Estate
Graded: Designing and Building Commercial Real Estate
Graded: Mathematics of Money
WEEK 4
Project Finance
Professor Bob Dewing discusses project finance and provides an overview of Global Project Finance. The roles of stakeholders in project finance is reviewed in depth.
10 videos
- Video: Stakeholders in Project Finance
- Video: Stakeholder Roles
- Video: Principles of Project Financing
- Video: Risk and Risk Allocation
- Video: Categories of Risk Allocation
- Video: Sponsor Perspectives - Structuring and Documentation
- Video: Completion Risks / Government Perspectives
- Video: Contract Parties
- Video: Contracts and Agreements
Graded: Project Finance
Risk In Project Finance
Eduardo Gamez discusses risk in project financing outlining the different entities involved in a transaction for a project.
3 videos
- Video: Borrowing vs Partnering Case Study: Revenue generating case
- Video: Case Study: Developer land swap case / Identifying and Allocating Risk
- Discussion Prompt: Risk in Project Finance
Graded: Risk in Project Finance
WEEK 5
Public - Private Partnerships
Karl Reichert introduces public and private partnerships.
8 videos
- Video: Project Types
- Video: Drivers, Value and Typical Structures of P3
- Video: Responsibilities and Risk Transfer in various P3 structures
- Video: Pursuits through full project lifecycle and P3 Success Factors
- Video: Benefits of P3
- Video: Getting on Board with P3: Case Studies
- Video: A Deeper Dive Into P3 Case Studies
- Discussion Prompt: Public Private Partnerships
Graded: Public Private Partnerships
Lean in Construction Financing
Sam Spata provides an overview of Lean in Construction Financing and describes how to identify and mitigate risk using Lean Project Delivery Systems.
4 videos
- Video: Waste Concept in Lean
- Video: Mitigating Risk through Lean Project Delivery Systems
- Video: How To Access Probability and Mitigate
Graded: Lean in Construction Finance
Course Wrap-up
Professor Ibrahim Odeh wraps-up the Construction Finance course and discuss the Construction Management specialization.
1 video
FAQs
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Pricing
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| Access to course materials | Available |
| Access to graded materials | Available |
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Ratings and Reviews
could be more challenging. but teachers are great!
Great Materials and insights on the industry! Plenty of current industry examples referred to throughout the course.
Prof. Webster module is great! More of it!
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Excellent course. While I am a construction project manger, I found here some very good refreshment of knowledge, new & updated views on financing, latest trends in thinking, etc. Its given me a renewed confidence in my day to day work!