NPTEL Syllabus

Construction Economics & Finance Video course

COURSE OUTLINE
Engineering economics, Time value of money, discounted cash flow, NPV,
ROR,PI, Basis of comparison, Incremental rate of return, Benefit- cost analysis,
Replacement analysis, Break even analysis.
Risks and uncertainties and management decision in capital budgeting.
Taxation and inflation.

NPTEL
http://nptel.iitm.ac.in

Civil Engineering

Work pricing, cost elements of contract, bidding and award, revision due to
unforeseen causes, escalation. Turnkey activities, Project appraisal and project
yield.
Construction accounting, Profit & Loss, Balance Sheet, Income statement, Ratio
analysis. Depreciation and amortization.
Working capital management, financial plan and multiple source of finance.
International finance, Budgeting and budgetary control, Performance budgeting,
appraisal through financial statements, Practical problems and case studies,
Project cash flow.
COURSE DETAIL

Sl.
No.

Topic

No. of
Hours

Introduction, time value of money, rate of return, Cash flow,

derivation of interest formulae, discounting.

03

Geometric Gradient, Equivalence, Present cost method,

Present worth analysis.

03

Annual cost method, equal, unequal, and infinite lives,

Rate of return, Rate of Return comparison, cost of capital,
Evaluation of alternatives.

04

Project cash flow, Captim, Factors affecting project cash

flow.

05

Depreciation and Tax considerations in alternative

Replacement analysis comparisons.

03

Benefit cost ratio, Public projects evaluation.

02

Breakeven analysis, Risk Analysis.

06

Coordinators:
Dr. K.N. Jha
Department of Civil EngineeringIIT
Delhi

Construction Account Basics, Debit and Credit, Ledger,

and Journal.

03

Balance Sheet and Profit and Loss Account, Working

capital.

04

10

Ratio Analysis, Financial plan and Sources of finance.

03

11

Work pricing, cost elements, Bidding and award, Earned

value management, Escalation.

06

References:
1. Riggs, J.L., Bedworth, D.D., and Randhawa, S.U. (2005). Engineering
Economics Tata- McGraw Hill Publishing Co Ltd.
2. Tarquin, A.J. and Blank, L.T. (1976) Engineering Economy, A Behavioural
Approach McGraw Hill Book Company.
3. Taylor, G.A. (1968). Managerial and Engineering Economy. East-West
Edition.
4. Thuesen, H.G. (1959). Engineering Economy, Prentice-Hall, Inc.
5. Van Horne, J.C. (1990). Fundamentals of Financial Management,
Prentice-Hall of India Ltd.
6. Brigham, E.F. (1978). Fundamentals of Financial Management, The
Dryden Press, Hinsdale, Illinois.
7. Kolb, R.W. and Rodriguez, R.J. (1992). Financial Management. D.C.
Heath & Co.
8. Walker, E.W. (1974). Essentials of Financial Management, Prentice Hall of
India Private Limited, New Delhi.
9. Wilfred, N. (1971). Accounting for the Building Trade, Hutchinson
Educational, London.
10. Pilcher R. (1966). Principles of Construction Management. McGraw Hill
Publishing Co Ltd.
11. Lifson, N.W. and Shalfer, E.F. (1982). Decision and Risk Analysis for
Construction Management, John Wiley & Sons.
12. Degoff, R.A. and Friedman, H.A. (1985). Construction Management, John
Wiley & Sons.
13. Van Horne, J.C. (1990). Management and Policy, Prentice-Hall of India
Ltd.
14. Harris, F. and McCaffer, R. (1989). Modern Construction Management.
BSP Professional Books.
A joint venture by IISc and IITs, funded by MHRD, Govt of India

http://nptel.iitm.ac.in