Construction Finance from Coursera

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.

What's inside

Syllabus

Introduction To The Construction Finance Course

Professor Ibrahim Odeh provides an overview of the Construction Finance course, and introduces the guest speakers.

The Mathematics of Money

Professor Ibrahim Odeh discusses the Mathematics of Money beginning with a definition of the Time Value of Money. Calculating simple and compound interest rates are covered along with distinguishing between nominal and effective interest rates. Illustrated in this module is drawing a cash flow diagram.

Real Estate Finance for Development Projects

Professor Anthony Webster introduces real estate finance providing an overview of the real estate project lifecycle, a discussion on zoning code parameters, and examples of estimating the sales price of a property.

Financial Plans for Development Projects

Professor Anthony Webster provides an in-depth look at designing and building commercial real estate by looking at financial plans. The module ends with a deep dive into decision tree analysis.

Project Finance

Professor Bob Dewing discusses project finance and provides an overview of Global Project Finance. The roles of stakeholders in project finance is reviewed in depth.

Risk In Project Finance

Eduardo Gamez discusses risk in project financing outlining the different entities involved in a transaction for a project.

Public - Private Partnerships

Karl Reichert introduces public and private partnerships.

Lean in Construction Financing

Sam Spata provides an overview of Lean in Construction Financing and describes how to identify and mitigate risk using Lean Project Delivery Systems.

Course Wrap-up

Professor Ibrahim Odeh wraps-up the Construction Finance course and discuss the Construction Management specialization.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Explores finance, which is a core concept in real estate development

Covers a wide array of topics on both vertical and horizontal construction finance

Taught by industry professionals, providing practical insights and real-world examples

Involves guest speakers who are experts in their respective fields

Examines various case studies, offering practical applications of the concepts

May require prior knowledge in construction or finance for a deeper understanding

Reviews summary

Positive construction finance insight

According to students, this construction finance course provides an insight into construction project management. Learners say knowledge is refreshed, and there are updated views on financing.

Updated views on financing.

"new & updated views on financing"

Refreshes knowledge.

"Its given me a renewed confidence in my day to day work!"

Provides an insight into construction project management.

"The construction management specialisation offers an unique insight into construction."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Construction Finance with these activities:

Refresh High School Math

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Reviewing these essential math skills will strengthen your foundation and better prepare you for the coursework ahead.

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Review algebra concepts such as polynomials, equations, and inequalities.
Focus on essential trigonometry topics like trigonometric functions, identities, and unit circle.

Review algebra

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This course builds on prior knowledge of algebra. Before starting the course, it would be helpful to review basic algebra skills.

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Review notes or textbooks from previous math classes
Take practice problems and review solutions

Watch video tutorials on construction finance

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Watching tutorials will help you learn the basics of construction finance at your own pace and in a more interactive way.

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Find construction finance video tutorials online.
Watch the tutorials and take notes.
Pause and rewind the tutorials as needed.

Seven other activities

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Review the Mathematics of Money

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Solidify foundational understanding of the mathematical concepts used in construction finance.

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Review the time value of money.
Practice calculating simple and compound interest rates.
Create a cash flow diagram.

Participate in discussion forums or study groups

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The course offers opportunities for interaction through discussion forums. Take advantage of these platforms to engage with other students, ask questions, and share insights, which can deepen your understanding and foster collaboration.

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Identify relevant discussion forums or study groups
Actively participate in discussions, posing thoughtful questions and sharing your perspectives
Collaborate with peers on projects or assignments

Create a glossary

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The course covers various construction finance terms and concepts. Creating a glossary of these terms can help solidify your understanding and improve your ability to recall them.

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Identify key terminology from each section of the course
Write clear and concise definitions for each term
Organize the definitions alphabetically or by topic

Solve practice problems on interest rate calculations

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The course covers various interest rate calculation methods. To strengthen your understanding, it would be beneficial to solve practice problems involving these calculations.

Browse courses on Time Value of Money

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Identify practice problems from the course material or online resources
Solve the problems using the formulas and techniques discussed in the course
Check your solutions against provided answers or consult with the instructor

Solve construction finance problems

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Solving practice problems will help you develop your problem-solving skills and apply the concepts you learn in class to real-world situations.

Browse courses on Time Value of Money

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Find practice problems online or in textbooks.
Solve the problems using the concepts you have learned.
Check your answers against the provided solutions.

Follow online tutorials on construction finance software

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The course briefly introduces construction finance software. To enhance your hands-on experience, consider following online tutorials on industry-specific software used for financial analysis and project management.

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Identify reputable online platforms or software vendors
Choose tutorials that align with your learning goals
Follow the tutorials, complete exercises, and apply the knowledge in practice

Attend a construction finance workshop

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Attending a workshop will allow you to learn from experts in the field and gain insights into the latest trends and best practices in construction finance.

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Find a construction finance workshop in your area.
Register for the workshop.
Attend the workshop and participate in the activities.

Career center

Learners who complete Construction Finance will develop knowledge and skills that may be useful to these careers:

Financial Analyst

Financial Analysts study and analyze financial data including consumer spending, business revenue, stock market trends, and overall economic conditions. This course is an excellent way to prepare for this role by building a strong foundation in the mathematics of money, including the time value of money and interest rates. This course also covers real estate finance and project finance, which are both important topics for Financial Analysts.

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Investment Banker

Investment Bankers provide financial advice to corporations, governments, and individuals. They help their clients raise money through the issuance of stocks and bonds, and they also advise on mergers and acquisitions. This course is a great way to prepare for a career in investment banking by providing a strong foundation in the mathematics of money and financial modeling. The course also covers real estate finance and project finance, which are both important topics for Investment Bankers.

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Portfolio Manager

Portfolio Managers manage and invest money on behalf of their clients. They typically specialize in a particular asset class, such as stocks, bonds, or real estate. This course is a great way to prepare for a career in portfolio management by providing a strong foundation in the mathematics of money, including the time value of money and interest rates. The course also covers real estate finance and project finance, which are both important topics for Portfolio Managers.

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Real Estate Developer

Real Estate Developers acquire, develop, and manage real property. They are responsible for the entire development process, from site selection and planning to construction and marketing. This course is a great way to prepare for a career in real estate development by providing a strong foundation in real estate finance, including topics such as zoning codes and property valuation. The course also covers project finance, which is an important topic for Real Estate Developers.

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Construction Manager

Construction Managers oversee the construction of buildings and other structures. They are responsible for planning, budgeting, and executing construction projects. This course is a great way to prepare for a career in construction management by providing a strong foundation in the mathematics of money, including the time value of money and interest rates. The course also covers real estate finance and project finance, which are both important topics for Construction Managers.

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Project Manager

Project Managers oversee the planning, execution, and completion of projects. They are responsible for managing all aspects of a project, from scope and budget to timeline and risk. This course is a great way to prepare for a career in project management by providing a strong foundation in the mathematics of money, including the time value of money and interest rates. The course also covers project finance, which is an important topic for Project Managers.

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Cost Estimator

Cost Estimators estimate the cost of construction projects. They use their knowledge of construction materials and methods to develop detailed cost estimates. This course is a great way to prepare for a career as a cost estimator by providing a strong foundation in the mathematics of money, including the time value of money and interest rates. The course also covers construction finance, which is an important topic for Cost Estimators.

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Quantity Surveyor

Quantity Surveyors measure and estimate the quantities of materials needed for construction projects. They also prepare cost estimates and manage contracts. This course is a great way to prepare for a career as a quantity surveyor by providing a strong foundation in the mathematics of money, including the time value of money and interest rates. The course also covers construction finance, which is an important topic for Quantity Surveyors.

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Civil Engineer

Civil Engineers design and build infrastructure, such as roads, bridges, and buildings. They also manage construction projects. This course is a great way to prepare for a career as a civil engineer by providing a strong foundation in the mathematics of money, including the time value of money and interest rates. The course also covers real estate finance and project finance, which are both important topics for Civil Engineers.

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Structural Engineer

Structural Engineers design and analyze the structural elements of buildings and other structures. They ensure that structures are safe and stable. This course is a great way to prepare for a career as a structural engineer by providing a strong foundation in the mathematics of money, including the time value of money and interest rates. The course also covers real estate finance and project finance, which are both important topics for Structural Engineers.

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Mechanical Engineer

Mechanical Engineers design and build mechanical systems, such as heating, ventilation, and air conditioning systems. They also manage construction projects. This course provides a strong foundation in the mathematics of money, including the time value of money and interest rates. The course also covers project finance, which is an important topic for Mechanical Engineers.

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Electrical Engineer

Electrical Engineers design and build electrical systems, such as power distribution systems and lighting systems. They also manage construction projects. This course provides a strong foundation in the mathematics of money, including the time value of money and interest rates. The course also covers project finance, which is an important topic for Electrical Engineers.

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Architect

Architects design and oversee the construction of buildings and other structures. They are responsible for the aesthetic and functional design of buildings. This course provides a strong foundation in the mathematics of money, including the time value of money and interest rates. The course also covers real estate finance, which is an important topic for Architects.

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Landscape Architect

Landscape Architects design and build outdoor spaces, such as parks, gardens, and playgrounds. They are responsible for the aesthetic and functional design of outdoor spaces. This course provides a strong foundation in the mathematics of money, including the time value of money and interest rates. The course also covers real estate finance, which is an important topic for Landscape Architects.

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Interior designer

Interior Designers design and decorate interior spaces, such as homes, offices, and retail stores. They are responsible for the aesthetic and functional design of interior spaces. This course may be useful to Interior Designers by providing a foundation in the mathematics of money, including the time value of money and interest rates. The course also covers real estate finance, which may be helpful for Interior Designers who work on commercial projects.

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