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ENGG2850: Project Cost and Finance (2019 - Semester 1)

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Unit: ENGG2850: Project Cost and Finance (6 CP)
Mode: Normal-Day
On Offer: Yes
Level: Intermediate
Faculty/School: Project Management
Unit Coordinator/s: Dr Chung, Kenneth
Session options: Semester 1
Versions for this Unit:
Site(s) for this Unit:
Campus: Camperdown/Darlington
Pre-Requisites: ENGG1850 OR (ENGG1865 AND [24 cp of BPM core 2000 level units]) OR.
Prohibitions: CIVL2812 OR CIVL3812.
Brief Handbook Description: This is a theory and case study based UoS providing students with a unified approach to the analysis of project value, supported by explicit methods for ranking and selection of projects on the basis of returns and sensitivity. The UoS uses "Project Finance" as a vehicle for descibing the fundamentals of project management financing and contrasts it with "Direct Financing", a more traditional approach to funding projects.
Assumed Knowledge: None.
Lecturer/s: Dr Harré, Michael
Ms Peric, Amela
Timetable: ENGG2850 Timetable
Time Commitment:
# Activity Name Hours per Week Sessions per Week Weeks per Semester
1 Lecture 2.00 1 13
2 Tutorial 1.00 1 12
3 Laboratory 1.00 1 12
4 Independent Study 6.00 1 12
T&L Activities: In-class lectures (2hrs a week) will be supplemented by lectures online for up to 1 hr per week. Familiarity with content of all lectures including those online is assumed in tutorials and lab sessions, and tested in quizzes and exams.

Tutorial exercises would cover case studies, workshops as well as project finance related exercises. Tutorial exercises will also provide exposure and discussions of different approaches to develop project cost estimates. Exercises will cover issues relevant to project cost monitoring, cost benefit analysis at each milestone of work package delivery. Students will learn how to take corrective actions to adjust cost variance, learn to monitor and adjust different aspects of project deliverables in achieving desired cost goals.

Lab exercises will cover the development of cost estimation, monitoring the variances, modelling the impact of corrective actions on the overall project cost goals.

Attributes listed here represent the key course goals (see Course Map tab) designated for this unit. The list below describes how these attributes are developed through practice in the unit. See Learning Outcomes and Assessment tabs for details of how these attributes are assessed.

Attribute Development Method Attribute Developed
Practice in ranking and selecting projects based on project valuation. Project Development (Level 2)
Practice in concepts and methods of project valuation. Project Methods (Level 2)
Practice in identifying internal and external factors affecting project valuation. Project Leadership (Level 2)
Developing a project business case with in-depth discussion of project value. Project Communication (Level 2)

For explanation of attributes and levels see Project Management Learning Progression Table 2019.

Learning outcomes are the key abilities and knowledge that will be assessed in this unit. They are listed according to the course goal supported by each. See Assessment Tab for details how each outcome is assessed.

Project Methods (Level 2)
1. Conduct a broad-based, well-informed project valuation using quantitative methods.
2. Critically evaluate a given project valuation.
3. Understand risk from a statistical and sensitivity perspective.
Project Development (Level 2)
4. Make decisions on ranking and selecting projects using sound project management principles.
Project Leadership (Level 2)
5. Comprehend how external forces affect project valuation and understand how these forces can be mitigated.
6. Understand low-probability, high-impact events and behavioural influences in project valuation.
Project Communication (Level 2)
7. Discuss the valuation of projects within a coherent conceptual framework.
Assessment Methods:
# Name Group Weight Due Week Outcomes
1 Five Quizzes No 60.00 Multiple Weeks 1, 2, 3, 4, 5, 6, 7,
2 Interim project report* Yes 15.00 Week 6 1, 2,
3 Project report* Yes 25.00 Week 13 1, 2,
Assessment Description: * indicates an assessment task which must be submitted even if a student misses the deadline due to special consideration.

5 quizzes during the semester covering the class material, each quiz lasting 30 mins at the beginning of the class and each will be worth 12% of your final grade. The first quiz is during the beginning of class in the 4th week, the final quiz is during the beginning of class in the 12th week. This counts towards a total of 60% of your overall mark. The weeks assessments are held on are weeks: 4, 6, 8, 10, and 12.

Interim project report: Students will need to show that they have decided on a group project and have established a clear path (with milestones, specific tasks listed and assigned to group members etc.) to the completion of the final project due in week 13. This counts towards 15% of a student`s overall mark.

Project: Students develop a business case for a given project in groups using all of the tools covered in class. This counts towards 25% of a student`s overall mark.

Final Exam: There is no final exam.

Late submissions will incur a penalty of 10% per day for up to 7 days starting directly after the cut off time. This means 10% will be deducted even if submitted on the due day but after the cut-off time. After one week, assessments will no longer be marked and receive a 0 mark.

There may be statistically defensible moderation when combining the marks from each component to ensure consistency of marking between markers, and alignment of final grades with unit outcomes.
Grading:
Grade Type Description
Standards Based Assessment Final grades in this unit are awarded at levels of HD for High Distinction, DI (previously D) for Distinction, CR for Credit, PS (previously P) for Pass and FA (previously F) for Fail as defined by University of Sydney Assessment Policy. Details of the Assessment Policy are available on the Policies website at http://sydney.edu.au/policies . Standards for grades in individual assessment tasks and the summative method for obtaining a final mark in the unit will be set out in a marking guide supplied by the unit coordinator.
Policies & Procedures: See the policies page of the faculty website at http://sydney.edu.au/engineering/student-policies/ for information regarding university policies and local provisions and procedures within the Faculty of Engineering and Information Technologies.
Online Course Content: All necessary content will be provided during class or the tutorials.

Note that the "Weeks" referred to in this Schedule are those of the official university semester calendar https://web.timetable.usyd.edu.au/calendar.jsp

Week Description
Week 1 An introduction to “Introduction to Project Finance”
Week 2 The Foundation Principles of Project Finance and Overview
Week 3 The Time Value of Money
Week 4 Use of variable discount rates in accounting practice.
Week 5 The Structuring of Projects
Week 6 The Structuring of Projects II
Assessment Due: Interim project report*
Week 7 Project Valuation and Analysis
Week 8 Project Valuation and Analysis II
Week 9 Managing Project Risks
Week 10 Decision tree analysis and sensitivity analysis.
Week 11 Lecture/Tutorial: Legal Considerations in Project Finance
Week 12 Integrated analysis and overview of project finance.
Week 13 Revision
Assessment Due: Project report*
Pre-Semester Lecture/Tutorial:
Post-Semester Lecture/Tutorial:
Mid-Semester Break Lecture/Tutorial:

Course Relations

The following is a list of courses which have added this Unit to their structure.

Course Year(s) Offered
Aeronautical Engineering / Project Management 2012, 2013, 2014
Aeronautical Engineering (Space) / Project Management 2012, 2013, 2014
Biomedical Engineering / Project Management 2013, 2014
Chemical & Biomolecular Engineering / Project Management 2012, 2013, 2014
Civil Engineering / Project Management 2012, 2013, 2014
Electrical Engineering / Project Management 2012, 2013, 2014
Electrical Engineering (Power) / Project Management 2012, 2013, 2014
Aeronautical / Project Management 2015, 2016, 2017, 2018
Aeronautical (Space) / Project Management 2015
Biomedical / Project Management 2015, 2016, 2017, 2018
Chemical & Biomolecular / Project Management 2015, 2016, 2017, 2018
Civil / Project Management 2015, 2016, 2017, 2018
Electrical / Project Management 2015, 2016, 2017, 2018, 2020
Electrical (Computer) / Project Management 2015
Electrical (Power) / Project Management 2015
Electrical (Telecommunications) / Project Management 2015
Mechanical / Project Management 2015, 2016, 2017, 2018
Mechanical (Space) / Project Management 2015
Mechatronic / Project Management 2015, 2016, 2017, 2018
Mechatronic (Space) / Project Management 2015
Software / Project Management 2015, 2016, 2017, 2018
Mechanical Engineering (Biomedical) / Project Management 2012
Mechanical Engineering / Project Management 2012, 2013, 2014
Mechanical Engineering (Space) / Project Management 2012, 2013, 2014
Mechatronic Engineering / Project Management 2012, 2013, 2014
Mechatronic Engineering (Space) / Project Management 2012, 2013, 2014
Software Engineering / Project Management 2012, 2013, 2014
Bachelor of Project Management/Bachelor of Arts 2016, 2017
Bachelor of Project Management (Built Environment) 2012, 2013, 2014, 2015, 2016, 2017, 2018
Bachelor of Project Management (Built Environment) Mid-Year 2016, 2017, 2018
Bachelor of Project Management (Civil Engineering Science) 2012, 2013, 2014, 2015, 2016, 2017, 2018
Bachelor of Project Management (Civil Engineering Science) Mid-Year 2016, 2017, 2018
Bachelor of Project Management (Software) Mid-Year 2016, 2017, 2018
Bachelor of Project Management (Software) 2012, 2013, 2014, 2015, 2016, 2017, 2018
Aeronautical/ Project Management 2019, 2020
Biomedical/ Project Management 2019, 2020
Chemical & Biomolecular/ Project Management 2019, 2020
Civil/ Project Management 2019, 2020
Electrical/ Project Management 2019, 2020
Mechanical/ Project Management 2019, 2020
Mechatronic/ Project Management 2019, 2020
Software/ Project Management 2019, 2020
Bachelor of Project Management- Built Environment Major (Table A) 2019, 2020
Bachelor of Project Management- Construction Major (Table A) 2019, 2020
Bachelor of Project Management- Table S Major 2019, 2020

Course Goals

This unit contributes to the achievement of the following course goals:

Attribute Practiced Assessed
Project Methods (Level 2) Yes 67%
Project Development (Level 2) Yes 9%
Project Leadership (Level 2) Yes 15%
Project Communication (Level 2) Yes 9%

These goals are selected from Project Management Learning Progression Table 2019 which defines overall goals for courses where this unit is primarily offered. See Project Management Learning Progression Table 2019 for details of the attributes and levels to be developed in the course as a whole. Percentage figures alongside each course goal provide a rough indication of their relative weighting in assessment for this unit. Note that not all goals are necessarily part of assessment. Some may be more about practice activity. See Learning outcomes for details of what is assessed in relation to each goal and Assessment for details of how the outcome is assessed. See Attributes for details of practice provided for each goal.