Construction Finance

Go to Course: https://www.coursera.org/learn/construction-finance

Introduction

**Course Review: Construction Finance on Coursera** **Overview:** The "Construction Finance" course offered on Coursera is a comprehensive program designed for construction project managers aspiring to enhance their understanding of financial principles as they relate to the construction industry. The course is led by experienced professors, including Ibrahim Odeh, Anthony Webster, Bob Dewing, Eduardo Gamez, Karl Reichert, and Sam Spata, providing participants with diverse insights into the financial intricacies of construction projects. This course is a must for those looking to integrate economic and mathematical knowledge into their project management toolkit. **Course Structure:** The course is structured into distinct sections, each focusing on key areas of construction finance crucial for any aspiring project manager: 1. **Introduction To The Construction Finance Course**: Led by Professor Ibrahim Odeh, this section sets the stage for what learners can expect. It offers a succinct overview and introduces guest speakers who will contribute throughout the course. 2. **The Mathematics of Money**: Professor Odeh delves into essential concepts such as the Time Value of Money, differentiating between simple and compound interest rates, and the vital practice of creating cash flow diagrams. This foundational knowledge is key for anyone aiming to excel in construction finance. 3. **Real Estate Finance for Development Projects**: Professor Anthony Webster broadens the scope by introducing real estate finance, covering the project lifecycle and zoning code parameters, which are crucial for estimating property sales prices. 4. **Financial Plans for Development Projects**: Continuing with Professor Webster, learners explore the intricacies of designing financial plans for commercial real estate, culminating in a practical look at decision tree analysis, an invaluable skill for evaluating project options. 5. **Project Finance**: Professor Bob Dewing takes learners through the landscape of global project finance, discussing the roles of various stakeholders involved in construction projects, ensuring students understand the collaborative nature of finance in this field. 6. **Risk In Project Finance**: In this module, Eduardo Gamez helps students identify and assess risks inherent in project financing, providing a comprehensive view of the risks that can impact project success. 7. **Public-Private Partnerships**: Karl Reichert elaborates on the dynamics of public-private partnerships, a model often used in large-scale construction projects, detailing the benefits and challenges associated with this approach. 8. **Lean in Construction Financing**: Sam Spata presents an innovative perspective on finance, focusing on Lean Project Delivery Systems. This section equips learners with strategies to identify and mitigate risks effectively through Lean methodologies. 9. **Course Wrap-up**: The course concludes with a summary by Professor Odeh, where he ties together the concepts learned and discusses how this course fits within the broader context of Construction Management specialization. **Review:** The "Construction Finance" course is exceptionally well-structured, offering a blend of theoretical knowledge and practical applications. The varied teaching styles of the professors maintain engagement while promoting a deeper understanding of complex concepts. The course utilizes real-world examples that relate closely to current industry practices, making the material relatable and applicable. Learners can expect to develop crucial skills that will enhance their proficiency in financial decision-making relevant to construction projects. The inclusion of risk management and Lean methodologies addresses contemporary challenges faced by project managers, ensuring that the content is both timely and relevant. **Recommendation:** I highly recommend the "Construction Finance" course to anyone working in or entering the construction industry. Whether you are a seasoned project manager, a developer, or a finance professional seeking to diversify your knowledge, this course is designed to elevate your understanding of construction finance. The emphasis on the time value of money, risk assessment, and practical planning will provide a solid foundation for navigating the financial landscape of construction projects. Enroll in this course to empower yourself with skills that are essential for driving project success in today’s competitive market.

Syllabus

Introduction To The Construction Finance Course

Professor Ibrahim Odeh provides an overview of the Construction Finance course, and introduces the guest speakers.

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.

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.

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.

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.

Eduardo Gamez discusses risk in project financing outlining the different entities involved in a transaction for a project.

Karl Reichert introduces public and private partnerships.

Sam Spata provides an overview of Lean in Construction Financing and describes how to identify and mitigate risk using Lean Project Delivery Systems.

Professor Ibrahim Odeh wraps-up the Construction Finance course and discuss the Construction Management specialization.