Construction Finance
This course 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. The course covers these topics in three sections. The first section focuses on the foundation of building the mathematics of money, often referred to as value of money.
Monthly Subscription Starting at AED 99 + VAT
- Level Foundation
- Duration 18 hours
- Course by Columbia University
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Offered by
About
This course 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. The course covers these topics in three sections. The first section focuses on the foundation of building the mathematics of money, often referred to as value of money. It also highlights the present value techniques and the internal rate of return from a construction manager point of view. The second section of the course focuses on vertical construction finance and the last part focuses on horizontal construction finance. Under the vertical construction finance, the instructor discusses real estate finance and how that has been done with more in-depth details and gives examples for students to solve with instructions. The last topic, horizontal finance, is divided into two parts. To begin, the instructor introduces vast details about public private partnership. This module highlights around three case studies about PPP projects, which would be an introduction to project financing in horizontal work. After introducing case studies, the instructor demonstrates the risks associated with construction finance. After that, similar to the previous three courses, the course finishes with emphasizing the importance of construction finance.Modules
Construction Finance Course Introduction
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1
Videos
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2
Readings
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1
Plugin
1
Videos
- Construction Finance Course Introduction
2
Readings
- Academic Honesty Policy
- Discussion Forum Etiquette
Mathematics of Money / Time Value of Money
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5
Videos
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1
Readings
5
Videos
- Mathematics of Money - Project Evaluation
- Computing Interest / Simple Interest Calculations
- Compound Interest Calculations
- Simple vs. Compound Interest Rate Example / Nominal and Effective Rate
- Nominal Interest Rate Example and Minimum Attractive Rate of Return
1
Readings
- Lecture Handout
Cash Flow Diagram
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5
Videos
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1
Readings
5
Videos
- Present and Future Value of Money
- Future Value of a Uniform Series
- Uniform Series
- Uniform Series: A deeper dive
- Equations for Uniform Series
1
Readings
- Lecture Handout
Net Present Value and IRR
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2
Videos
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2
Readings
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1
Discussion
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1
Assignment
1
Assignment
- Mathematics Of Money
1
Discussions
- Mathematics of Money
2
Videos
- Net Present Value (NPV) Example
- Internal Rate of Return (IRR) Example
2
Readings
- Lecture Handout
- Lecture Video Learning Supplement
Assignment
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1
Assignment
1
Assignment
- Case Study: Mathematics of Money
Real Estate Finance: Financing Real Estate Development Projects
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6
Videos
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2
Readings
6
Videos
- Introduction to Financing Development Projects
- Feasibility Study Example -- Project Parameters
- Development Costs
- "Comps" based Property Sale, Tax, Gain and Return
- "Cap Rate" based Sale, Tax Gain and Return
- Preview of "Discounted Cash Flow" Methods for Gain and Return
2
Readings
- Lecture Handout
- Lecture Material: Feasibility Study Example -- Project Parameters
Time Value Review and DCF Evaluation Methods
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6
Videos
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2
Readings
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1
Discussion
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1
Assignment
1
Assignment
- Real Estate Finance Development Projects
1
Discussions
- Deciding on a project
6
Videos
- Framework for "Discounted Cash Flow" (DCF) Analysis
- "Net Present Value" DCF Method for Project Evaluation
- Net Present Value (NPV) Examples
- "Internal Rate of Return" (IRR) Method for Project Evaluation
- NPV and IRR Analysis with Excel
- Changing and Comparing Compounding Periods
2
Readings
- Lecture Handout
- Lecture Material: NPV and IRR Analysis with Excel
Assignment
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1
Assignment
1
Assignment
- Feasibility Study: Estimating The Sales Price
Financial Plans for Development Projects
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5
Videos
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1
Readings
5
Videos
- Introduction to Financial Plans for Development Projects
- Debt Financing of Real Estate Projects
- Construction Loan Example
- Net Comprehensive Cash Flows for Sponsor and Lender
- DCF Project Evaluation for Sponsor and Lender
1
Readings
- Lecture Handout
Real Estate Finance: Decision Tree Analysis of Real-Estate Projects
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7
Videos
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1
Readings
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1
Discussion
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1
Assignment
1
Assignment
- Designing and Building Commercial Real Estate
1
Discussions
- Designing and Building Commercial Real Estate
7
Videos
- Introduction to Decision Tree Analysis - 1
- Introduction to Decision Tree Analysis - 2
- Decision Tree Example - Overview
- Solving the Example in Excel
- Analysis of the Tree Results
- Decision Tree Example with Time Value of Cash
- Analysis of the Tree Results with Time Value Considered
1
Readings
- Lecture Handout
Project Finance
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10
Videos
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1
Readings
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1
Assignment
1
Assignment
- Project Finance
10
Videos
- Global Project Finance Overview and by Sector
- Stakeholders in Project Finance
- Stakeholder Roles
- Principles of Project Financing
- Risk and Risk Allocation
- Categories of Risk Allocation
- Sponsor Perspectives - Structuring and Documentation
- Completion Risks / Government Perspectives
- Contract Parties
- Contracts and Agreements
1
Readings
- Lecture Handout
Risk in Project Finance
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3
Videos
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1
Readings
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1
Discussion
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1
Assignment
1
Assignment
- Risk in Project Finance
1
Discussions
- Risk in Project Finance
3
Videos
- Project Parties, Timeline, and Finance
- Borrowing vs Partnering Case Study: Revenue generating case
- Case Study: Developer land swap case / Identifying and Allocating Risk
1
Readings
- Lecture Handout
Public - Private Partnerships
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8
Videos
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1
Readings
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1
Discussion
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1
Assignment
1
Assignment
- Public Private Partnerships
1
Discussions
- Public Private Partnerships
8
Videos
- Public Private Partnerships (P3) Concept and Key Elements
- Project Types
- Drivers, Value and Typical Structures of P3
- Responsibilities and Risk Transfer in various P3 structures
- Pursuits through full project lifecycle and P3 Success Factors
- Benefits of P3
- Getting on Board with P3: Case Studies
- A Deeper Dive Into P3 Case Studies
1
Readings
- Lecture Handout
Lean in Construction Financing
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4
Videos
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1
Readings
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1
Assignment
1
Assignment
- Lean in Construction Finance
4
Videos
- Identifying Risk
- Waste Concept in Lean
- Mitigating Risk through Lean Project Delivery Systems
- How To Assess Probability and Mitigate
1
Readings
- Lecture Handout
Course Wrap-up
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1
Videos
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1
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1
Videos
- Course Wrap-up
Auto Summary
"Construction Finance" is a comprehensive course designed for construction project managers, focusing on the economics and mathematics of money essential for project success. Led by an expert instructor, the course covers the time value of money, interest rates, and Cash Flow Diagrams. It is divided into three sections: foundational mathematics of money, vertical construction finance, and horizontal construction finance with case studies on public-private partnerships. Available on Coursera, the course spans 1080 minutes and offers Starter and Professional subscriptions, targeting foundational-level learners in business and management.
Ibrahim Odeh, Ph.D., MBA