ANALYSIS OF CONSTRUCTION

COST AND FINANCES

Col Vivek Mathur, Retd

 Introduction
➢ Subject : CVL829 Analysis of Construction Cost
and Finances
➢ Course : M. Tech.(Construction Management)
➢ Lectures : 3 lectures and one tutorial/week
➢ Vapp for attendance
➢ Peoplesoft
➢ Sharda University LMS
➢ Blog address : shardacm2018.blogspot.com
 Syllabus
Unit-I Engineering Economics 06 periods
Basic principles – Time value of money, Quantifying alternatives for decision
making, Cashflow diagrams, Equivalence- Single payment in the future (P/F, F/P),
Present payment compared to uniform series payments (P/A, A/P), Future payment
compared to uniform series payments (F/A, A/F)

Unit-II Non-Uniform Payments 04 periods

Arithmetic gradient, Geometric gradient, analysis of gradient cash flows

Unit-III Alternative Comparisons 16 periods

Present, future and annual worth method of comparing alternatives, Rate of return,
Incremental rate of return, Break-even comparisons, Capitalized cost analysis,
Benefit-cost analysis.

Unit-IV 05 periods
Depreciation, Inflation and Taxes.

Unit-V Financial Management 05 periods

Construction accounting, Chart of Accounts, Financial statements – Profit and loss,
Balance sheets, Financial ratios, Working capital management.
 Study Material
1. Instructor's notes. (Will be shared on LMS after
completion of each lecture).
2. Textbooks
– Blank, L. T. and Tarquin, A. J., “Engineering Economy”,
Fourth Edition, WCB/Mc GrawHill, 1998.
– Bose, D. C., “Fundamentals of Financial management”,
2nd ed., PHI, New Delhi, 2010.
– Boyer, C. B. and Merzbach, U. C., “A History of
Mathematics”, 2nd ed., John Wiley & Sons, New York,
1989.
– Gould, F. E., “Managing the Construction Process”, 2nd
ed., Prentice Hall, Upper Saddle River, New Jersey, 2002.
 Methodology
➢ Computer Presentations.
➢ White board.
➢ Class discussions.
➢ Assignments.
➢ Projects and presentation by students.
➢ Medium of instruction: English.
 In-class Expectations
➢ Bring proper material for taking down notes.
➢ Please get your own calculator.
➢ Get a personal copy of Compound Interest
Tables.(available on internet)
➢ Entrance to the class permitted only up to first
5 minutes from the start of the lecture.
➢ More than 75% attendance compulsory for
appearing in the tests.
➢ Maintain classroom discipline.
➢ Be attentive in the class.
➢ Participate in classroom discussions.
 Grading Criteria
➢ End Semester Exam: 50 marks.
➢ Mid-Semester Exam: 20 marks.
➢ Continuous Assessment : 30 marks.
➢ Quiz – 15 marks (Best three out of four)
➢ Assignments / Project – 5 marks
➢ Participatory learning – 5 marks
➢ Attendance – 5 marks
➢ >= 90% - 5 marks
➢ 85 – 90% - 4 marks
➢ 80 – 85% - 3 marks
➢ 75 – 80% - 2 marks

➢ Have to pass in all three individually.

 Instructor Contact
➢ Col Vivek Mathur, Retd
➢ Room # 102 (Cabin # 07), Block-III

➢E mail : vivek.mathur@sharda.ac.in
➢ Mobile : +91-9419963559
Why study construction cost
analysis and finance?
 Economic Problems
➢ Simple
➢ Credit card, debit card, paytm, etc
➢ What mobile plan
➢ Intermediate
➢ Buy, lease, rent a car
➢ Rent, buy a flat
➢ Buy engineering equipment
➢ Complex
➢ Decisions to add a factory
➢ Building of dams, roads, railway
➢ Selection of life partners
Flow Chart of Economic Decision
Recognise Problem

Define the Goal or Objective

Assemble Relevant Data

Identify Feasible Alternatives

Select Criteria for Best

Evaluate Alternatives

Choose the Best

Audit the Results