This module draws on elements of economics and finance, with foundations in the decision sciences, including mathematical techniques that provide a grounding in all financial, budgeting and tracking issues relating to project finance and cost management. It introduces capital budgeting and project appraisal and links this to project budgeting, and tracking of future benefits using value management and risk management as core. It provides a perspective on procurement and contracting to equip the student with basic economic concepts associated with outsourcing, which is essential in any project context. The module consolidates important elements from finance and economics which are relevant to project management. The overall aim of this module is to introduce the features of commercial and contractual management and position it within the context of managing projects. It covers project financial systems, project selection, project investment, value management, sustaining business through projects, commercial decision making, procurement and contracting and lifecycle costing.

Introduction to the theory and practice of project finance; valuing the project and doing a cashflow analysis; project selection techniques NPV, IRR, ROI and their application; value management and value engineering processes, tools and techniques; risk management processes, tools and techniques; procurement systems, traditional forms, relationship procurement systems and strategies, far sighted project governance; introduction to contract law, functions of the contract, obligations, economics of contracting, transaction costs; whole life cycle costing, estimating tools and techniques, tracking and reporting progress using earned value, change control, performance measurement and quality assessments, variance analysis, forecasting estimates to completion; project auditing and reporting.

Distinguish between the principles of project and corporate finance and explain how they are employed in capital project investments Explain various project selection methods and evaluate projects using these Describe the value management process and use this to select the most beneficial course of action to deliver long term business benefits Identify, analyse and develop responses to risks using project risk management processes Explain the functions of a contract and the obligations of the various parties involved Describe various procurement systems as they apply across industry sectors Develop cost estimates and budgets for projects and use earned value to track project progress Conduct post-implementation project audits to track benefits and facilitate learning.

Justify project investments that deliver long term sustainable business benefits Support collaborative working across organisations and between organisations to deliver collectively beneficial outcomes.

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Synchronous and asynchronous methods will be used to deliver the module. Students will attend a series of lectures and tutorials and will be required to undertake tutorial exercises, tutorial tests and written assessment work as required through the semester. Students will be required to analyse cases using real examples from industry and will receive further insight through guest lectures etc. working in project finance and other commercial aspects of project management. Students will benefit in understanding the fundamental principles of finance and economics necessary to manage commercial projects effectively. Students will learn how value management principles can be used to sustain commercial projects and how financial systems and investment and appraisal tools and techniques can be used to ensure projects are successful and business risk is minimised.

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