Department of Architecture & Civil Engineering, Unit Catalogue 2007/08 |
AR50125 Pre-contract management |
| Credits: 6 |
| Level: Masters |
| Modular: no specific semester |
| Assessment: CW 50%, EX 50% |
| Requisites: |
|
This module addresses the nature of the construction process and its associated business aspects, prior to the award of a construction contract to a contractor. It focuses on the business world to review forms of business finance, investment appraisal and procurement approaches. Client and contractor objectives are also discussed. Overall, the module seeks to enable you to evaluate the principles of pre-construction practice and to distinguish between the various responsibilities and roles of pre-contract construction participants.
Aims & Learning Objectives: Aims: * To evaluate alternative approaches to business finance and investment appraisal * To distinguish between the various responsibilities and roles of pre-contract construction participants * To establish and explain the primary principles of pre-contract construction practice * To describe and compare suitable procurement approaches. Learning Objectives: When students have completed this unit they should be able: * To apply investment appraisal techniques to a range of investment options as a means of identifying the most prudent investment decisions * To demonstrate an understanding of business financial accounts and methods of management accounting * To outline the project primary participant variables involved in procurement, for clients, designers and constructors * To appreciate the range of services that a client may need from the construction industry and the mechanism for obtaining them * To understand the process of marketing and appreciate the importance of it for construction firms. Content: BUSINESS UNITS: Types, impacts on business units, takeovers and mergers, international business. INVESTMENT APPRAISAL: Consideration of tax and inflation, rate of return, discounted payback methods, discounted cash flow yield. FINANCIAL MANAGEMENT: Business performance, annual financial accounts, liquidity, investor potential. CASHFLOW AND FINANCE: Sources of finance, break-even analysis, cash flow forecasting. PROCUREMENT APPROACHES: Historical development, procurement participants, procurement methods and choice. UNDERSTANDING AND ACHIEVING CLIENTS OBJECTIVES: Who the client? What are client's needs? Meeting clients needs, maintaining project coalition. CONSTRUCTION SERVICES: Integrating services into project delivery, demolition, plant and material sectors. MARKETING: What is marketing? Market orientation, relationship marketing, marketing strategies and mix. BIDDING STRATEGIES: Competitive bidding processes, contractor's bidding strategies. |