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SSUD71-111: Project Finance and Procurement January 2022 [Standard]

General information

A robust understanding of finance and procurement is vital to successful project delivery. This subject examines financing and procurement management of projects, with particular emphasis on the initiation phase, using a range of international case studies drawn from both public and private sectors. The financing component includes the design, structuring, costing, sourcing and management of project finance, credit risk analysis, the cost of capital, principles of financial accounting, capital structure, markets and securitisation. The procurement component includes different types of contractual arrangements, responsibilities and appropriate organisational structures, solicitation planning, governance, the process of feasibility analysis, bid design and selection criteria, setting of a project budget and cost baseline, and implications for contract administration and contract close-out. Together, finance and procurement management ensure the ‘right project’ is selected and that client/sponsor satisfaction and value for money are ultimately delivered.

Details

Academic unit:Faculty of Society & Design
Subject code:SSUD71-111
Subject title:Project Finance and Procurement
Subject level:Postgraduate
Semester/Year:January 2022
Credit points:10

Delivery & attendance

Timetable: https://bond.edu.au/timetable
Delivery mode:

Standard

Workload items:
  • Seminar: x12 (Total hours: 36) - Weekly Seminar
  • Personal Study Hours: x12 (Total hours: 84) - Recommended study hours

Resources

Prescribed resources:
  • Lynda.com Accounting fundamentals. [Video]
  • Lynda.com Finance fundamentals. [Video]
After enrolment, students can check the Books and Tools area in iLearn for the full Resource List.
[email protected] & Email:[email protected] is the online learning environment at Bond University and is used to provide access to subject materials, lecture recordings and detailed subject information regarding the subject curriculum, assessment and timing. Both iLearn and the Student Email facility are used to provide important subject notifications. Additionally, official correspondence from the University will be forwarded to students’ Bond email account and must be monitored by the student.

To access these services, log on to the Student Portal from the Bond University website as www.bond.edu.au

Enrolment requirements

Requisites: ?

Nil

Restrictions: ?

Nil

Assurance of learning

Assurance of Learning means that universities take responsibility for creating, monitoring and updating curriculum, teaching and assessment so that students graduate with the knowledge, skills and attributes they need for employability and/or further study.

At Bond University, we carefully develop subject and program outcomes to ensure that student learning in each subject contributes to the whole student experience. Students are encouraged to carefully read and consider subject and program outcomes as combined elements.

Program Learning Outcomes (PLOs)

Program Learning Outcomes provide a broad and measurable set of standards that incorporate a range of knowledge and skills that will be achieved on completion of the program. If you are undertaking this subject as part of a degree program, you should refer to the relevant degree program outcomes and graduate attributes as they relate to this subject.

Find your program

Subject Learning Outcomes (SLOs)

On successful completion of this subject the learner will be able to:
  1. Show competency in project cost and procurement management
  2. Examine capital budgeting techniques and decision-making
  3. Design a procurement solution including feasibility study and budget
  4. Develop a financing plan for managing project cash flow requirements
  5. Explore case studies highlighting different project scenarios

Assessment

Assessment details

TypeTask%Timing*Outcomes assessed
Written Report Case study 1 - 10 Always due the week after class. 80% Weekly 1, 2, 3, 4, 5.
Discussion n/a 20% Week 12 1, 5.
  • * Assessment timing is indicative of the week that the assessment is due or begins (where conducted over multiple weeks), and is based on the standard University academic calendar
  • C = Students must reach a level of competency to successfully complete this assessment.

Assessment criteria

High Distinction 85-100 Outstanding or exemplary performance in the following areas: interpretative ability; intellectual initiative in response to questions; mastery of the skills required by the subject, general levels of knowledge and analytic ability or clear thinking.
Distinction 75-84 Usually awarded to students whose performance goes well beyond the minimum requirements set for tasks required in assessment, and who perform well in most of the above areas.
Credit 65-74 Usually awarded to students whose performance is considered to go beyond the minimum requirements for work set for assessment. Assessable work is typically characterised by a strong performance in some of the capacities listed above.
Pass 50-64 Usually awarded to students whose performance meets the requirements set for work provided for assessment.
Fail 0-49 Usually awarded to students whose performance is not considered to meet the minimum requirements set for particular tasks. The fail grade may be a result of insufficient preparation, of inattention to assignment guidelines or lack of academic ability. A frequent cause of failure is lack of attention to subject or assignment guidelines.

Quality assurance

For the purposes of quality assurance, Bond University conducts an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.

Study information

Submission procedures

Students must check the [email protected] subject site for detailed assessment information and submission procedures.

Policy on late submission and extensions

A student who has not established a basis for an extension in compliance with University and Faculty policy either by 1) not applying before the assessment due date or 2) by having an application rejected due to failure to show a justifiable cause for an extension, will receive a penalty on assessment submitted after its due date. The penalty will be 10% of marks awarded to that assessment for every day late, with the first day counted after the required submission time has passed. No assessment will be accepted for consideration seven calendar days after the due date. Where a student has been granted an extension, the late penalty starts from the new due date and time set out in the extension.

Policy on plagiarism

University’s Academic Integrity Policy defines plagiarism as the act of misrepresenting as one’s own original work: another’s ideas, interpretations, words, or creative works; and/or one’s own previous ideas, interpretations, words, or creative work without acknowledging that it was used previously (i.e., self-plagiarism). The University considers the act of plagiarising to be a breach of the Student Conduct Code and, therefore, subject to the Discipline Regulations which provide for a range of penalties including the reduction of marks or grades, fines and suspension from the University.

Bond University utilises Originality Reporting software to inform academic integrity.

Feedback on assessment

Feedback on assessment will be provided to students within two weeks of the assessment submission due date, as per the Assessment Policy.

Accessibility and Inclusion Support

If you have a disability, illness, injury or health condition that impacts your capacity to complete studies, exams or assessment tasks, it is important you let us know your special requirements, early in the semester. Students will need to make an application for support and submit it with recent, comprehensive documentation at an appointment with a Disability Officer. Students with a disability are encouraged to contact the Disability Office at the earliest possible time, to meet staff and learn about the services available to meet your specific needs. Please note that late notification or failure to disclose your disability can be to your disadvantage as the University cannot guarantee support under such circumstances.

Additional subject information

The focus of this subject is on project cost management, project procurement management and project initiation. It primarily addresses Program Learning Outcome #2: advise on effective implementation strategies to ensure value for money to the client/sponsor and how to meet agreed key performance indicators for project success.

Subject curriculum

After the introduction of the lecturer and his expectations also the students have to introduce themselves and state their expectations. During the second part of the lecture an overview of the 12 sessions is provided before the rest of the class focusses on tools, e.g. scenario technique, which help to decide if it is worthwhile to start a project and to look for possibilities to finance the task.

2, 5.

Students learn the fundamentals of accounting. We will be talking about Financial Statements, Balance Sheets, Income Statements, Retained Earnings, Assets, and the Accounting Equation, All is explained using a comprehensive example and students will work on an assignment practicing their newly acquired knowledge.

1.

On the fundamentals of the previous week, students will learn how a project valuation is conducted and how to calculate WACC and Cash Flows. They will prepare a solution to an Airbus Case, which will be discussed in next week's class.

1, 2, 4, 5.

Students will be introduced to the different theories behind decision making and a basic four step process to come up with the best possible decision, by gathering facts, identifying the alternatives,. assessing the alternatives and final deciding for one of the options.

1, 2.

Understanding the procurement process within companies is only possible if the students understand the concept of supply chain management. Using various examples the students learn in this session how supply chain networks are managed and how the interfaces with customers and suppliers work.

1, 3, 5.

This session focusses on the concepts behind Logistics and Inventory Management and how it influences project finance.

1.

Students will learn about the principles behind Outsourcing, the reasons why companies outsource, the advantages of outsourcing and the steps to a successful outsourcing project.

1, 5.

Now after the fundamental topics of finance and logistics were introduced during the first 7 lectures, this session focusses on procurement and how to design a procurement strategy. Students will learn about the concept behind "make or buy" and about procurement cycles and processes.

1, 3, 5.

Week 9 will focus on how to effectively negotiate with a customer or supplier a contract. Students will learn about the different negotiation strategies and will understand the success factors by looking at a variety of best proactive examples.

1, 5.

In this session the difference between Costing, Estimating and Pricing is explained. Students will understand the different pricing models and the theory behind a price-demand-function as a powerful tool so estimate a project's success and to plan a project's budget.

1, 2, 3, 4, 5.

After students have leaned about budgets, pricing and negotiation they are finally introduced to the concept of tendering. They learn about the different types of tenders and the key success factors to follow in order to win a tender.

1, 2, 3, 4.

The students will explain all 11 topics to the lecturer by using their notes only.

1, 2, 3, 4, 5.
Approved on: Nov 4, 2021. Edition: 2.6
Last updated: Nov 16, 2021.