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. 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.

• Introduction To The Construction Finance Course
• Professor Ibrahim Odeh provides an overview of the Construction Finance course, and introduces the guest speakers.
• 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.
• 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.
• 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.
• 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.
• Risk In Project Finance
• Eduardo Gamez discusses risk in project financing outlining the different entities involved in a transaction for a project.
• Public - Private Partnerships
• Karl Reichert introduces public and 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.
• Course Wrap-up
• Professor Ibrahim Odeh wraps-up the Construction Finance course and discuss the Construction Management specialization.