Financial Management for Projects and Contracts Training

By the end of this course, participants will understand:

• Key elements of finance and accounting relevant to good project and contract management
• Time value of money considerations and the importance of cash
• Evaluation criteria for Requests for Authorization (RFA)
• Best practices to manage contract pricing
• Link risk to costing and performance evaluation

CONTENT

Fundamentals of Finance

• Time value of money
• Discounted cash flows
• Direct vs. indirect costs
• Fixed vs. variable semi-variable costs
• Break-even analysis

Contract Profitability – Pricing

• Pricing strategy and tactics
• Profit planning
• Cost estimating
• Cost-based pricing
• Market-based pricing
• Value-based pricing

Asset Management – Cash is King

• Cash
• Timing of cash flows
• Inventory
• Equipment
• Revenue recognition
• Financing arrangement

TRAINING METHODOLOGY

The training methodology combines lectures, discussions, group exercises and illustrations. Participants will gain both theoretical and practical knowledge of the topics. The emphasis is on the practical application of the topics and as a result participant will go back to the workplace with both the ability and the confidence to apply the techniques learned to their duties.