This course is part of the Construction Management Specialization

4.8
stars
957 ratings

Ibrahim Odeh, Ph.D., MBA

29,252 already enrolled

Offered By

Construction Management SpecializationColumbia University

About this Course

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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.

Flexible deadlines

Reset deadlines in accordance to your schedule.

Shareable Certificate

Earn a Certificate upon completion

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Course 4 of 5 in the

Construction Management Specialization

Beginner Level

There is no prior knowledge that is needed; however, an understanding of simple and compound interest, financial keywords would be beneficial.

Approx. 17 hours to complete

English

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What you will learn

The basic economics of the essential components in every construction project
The definition and calculation of different types of interest rates
The importance of Cash Flow Diagrams

Skills you will gain

Financial Modeling
Project
Finance
Real Estate

Flexible deadlines

Reset deadlines in accordance to your schedule.

Shareable Certificate

Earn a Certificate upon completion

100% online

Start instantly and learn at your own schedule.

Course 4 of 5 in the

Construction Management Specialization

Beginner Level

There is no prior knowledge that is needed; however, an understanding of simple and compound interest, financial keywords would be beneficial.

Approx. 17 hours to complete

English

Could your company benefit from training employees on in-demand skills?

Try Coursera for Business

Instructor

Instructor rating

4.8/5 (123 Ratings)

Ibrahim Odeh, Ph.D., MBA

Instructor, Department of Civil Engineering and Engineering Mechanics, Columbia University

Director of Research and Founder, Global Leaders in Construction Management

138,858 Learners

5 Courses

Offered by

Columbia University

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Syllabus - What you will learn from this course

Content Rating89%(2,799 ratings)

Week1

Week 1

1 hour to complete

Introduction To The Construction Finance Course

1 hour to complete

1 video (Total 6 min), 2 readings

4 hours to complete

The Mathematics of Money

4 hours to complete

12 videos (Total 130 min)

12 videos

Mathematics of Money - Project Evaluation11mComputing Interest / Simple Interest Calculations9mCompound Interest Calculations12mSimple vs. Compound Interest Rate Example / Nominal and Effective Rate14mNominal Interest Rate Example and Minimum Attractive Rate of Return15mPresent and Future Value of Money11mFuture Value of a Uniform Series11mUniform Series8mUniform Series: A deeper dive11mEquations for Uniform Series9mNet Present Value (NPV) Example8mInternal Rate of Return (IRR) Example8m

2 practice exercises

Mathematics Of Money45mCase Study: Mathematics of Money30m

Week2

Week 2

4 hours to complete

Real Estate Finance for Development Projects

4 hours to complete

12 videos (Total 134 min)

12 videos

Introduction to Financing Development Projects10mFeasibility Study Example -- Project Parameters13mDevelopment Costs6m"Comps" based Property Sale, Tax, Gain and Return12m"Cap Rate" based Sale, Tax Gain and Return15mPreview of "Discounted Cash Flow" Methods for Gain and Return11mFramework for "Discounted Cash Flow" (DCF) Analysis10m"Net Present Value" DCF Method for Project Evaluation15mNet Present Value (NPV) Examples4m"Internal Rate of Return" (IRR) Method for Project Evaluation12mNPV and IRR Analysis with Excel11mChanging and Comparing Compounding Periods10m

2 practice exercises

Real Estate Finance Development Projects30mFeasibility Study: Estimating The Sales Price45m

Week3

Week 3

3 hours to complete

Financial Plans for Development Projects

3 hours to complete

12 videos (Total 132 min)

12 videos

Introduction to Financial Plans for Development Projects14mDebt Financing of Real Estate Projects10mConstruction Loan Example10mNet Comprehensive Cash Flows for Sponsor and Lender9mDCF Project Evaluation for Sponsor and Lender14mIntroduction to Decision Tree Analysis - 114mIntroduction to Decision Tree Analysis - 28mDecision Tree Example - Overview10mSolving the Example in Excel10mAnalysis of the Tree Results7mDecision Tree Example with Time Value of Cash9mAnalysis of the Tree Results with Time Value Considered10m

1 practice exercise

Designing and Building Commercial Real Estate30m

Week4

Week 4

2 hours to complete

Project Finance

2 hours to complete

10 videos (Total 111 min)

1 hour to complete

Risk In Project Finance

1 hour to complete

3 videos (Total 30 min)

Reviews

4.8

171 reviews

5 stars
80.89%
4 stars
15.44%
3 stars
2.50%
2 stars
0.62%
1 star
0.52%

TOP REVIEWS FROM CONSTRUCTION FINANCE

by CIJan 23, 2021

Construction Finance has never ever been presented in away that Dr Odeh done.

I will definitely advice the course to all my environment.

Thank you very much indeed.

by KKMay 16, 2020

It was very helpful for learning concepts like IRR, ARR, lean, risk management and simultaneously quizzes for every module is conducted. It is worth to take the course.

by TAOct 20, 2019

if you need to know the fundamentals of construction finance, then this course is for you.

Robust information.

Thanks Prof. Odeh

by MSFeb 26, 2023

Though I have a good experience in the domain and already know major of the course content, I loved to involve in the exercises.

View all reviews

About the Construction Management Specialization

The Construction Management specialization is curated for professionals in the construction and civil engineering industry looking to advance their careers. Through this specialization, students will gain comprehensive industry knowledge along with the latest trends and development within the industry. This 5-course specialization will cover the major facets of construction management including project initiation and planning, scheduling techniques and procedures, cost estimating and control, and construction project financials. After students complete this specialization, they will have gained significant skills and tools to stay relevant and ahead of the curve in the world of construction management.

Frequently Asked Questions

When will I have access to the lectures and assignments?
Access to lectures and assignments depends on your type of enrollment. If you take a course in audit mode, you will be able to see most course materials for free. To access graded assignments and to earn a Certificate, you will need to purchase the Certificate experience, during or after your audit. If you don't see the audit option:
The course may not offer an audit option. You can try a Free Trial instead, or apply for Financial Aid.
The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.
What will I get if I subscribe to this Specialization?
When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.
Is financial aid available?
Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.

More questions? Visit the Learner Help Center.

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