Cost management

INSTRUCTOR: Saeed Amiri

Instructions:

Project $1$ is designed to allow the students to demonstrate their understanding of Financial

Statements. The students are asked to mention the major items that a construction project

manager should know about the Financial Statements. The project is designed to allow the

students to apply the tools and techniques that are discussed in class. The students are asked to

analyze the financial statements of a construction company. The focus of the Project is to

demonstrate a group$$s ability to appropriately address the main steps designed from the

viewpoint of a construction project manager. Each group must submit their project and the final

report before the due date and present their final work based on the evaluation timetable

deadline. The project should include a cover sheet with group team members. Consider the

required project management skills, tools and techniques when working in a group and try to

make an effective project team. The assignment is designed in $7$ steps:

Step $1$:

Find a construction company.

$$ Find a construction company. The chosen firm can be defined as a consultant or a

Contractor.

$$ Provide related and sufficient information when defining the company, such as

geographic area, established year, type of organization, accounting standards and etc.

$$ You are asked to prepare a financial statement analysis for the selected firm.

Step $2$:

Studying the financial statements of the company

$$ Studying the Balance Sheet of the firm.

$$ Studying the Income Statement of the firm.

$$ Studying the Cash Flow Statements of the firm.

$$ Studying the other financial statements if they include important information.

Step $3$:

Common$-$size analysis

$$ Specifying the financial statements of the company in relation to a singular financial

statement base.

Step $4$:

Investigation of the current position and performance of the firm.

$$ Discuss the current position and performance of the company.

$$ Find the areas of strength and weakness and discuss how they can be improved.

Step $5$:

Comparison, Trend Analysis and Projection

$$ Implement a Trend Analysis and Compare the current position and performance of the

firm with the previous years.

$$ Compare the current position and performance of the firm with the average of the

industry.

$$ Compare the current position and performance of the firm with the most important

competitors.

$$ Make a forecast about the future of the firm and discuss how the firm can improve its

future position and performance.

$$ Use explanatory and informative figures to support your point of view.

Step $6$:

Prepare a report

$$ Write a clear and complete report reflecting all the aspects of the project.

$$ There is no limit to the number of pages.

$$ Including the required figures and illustrations or any other helpful images is suggested.

$$ All assignments should be written in accurate, easily understood language. Do not use

informal words. Slang and colloquialisms should be avoided. Any abbreviations or

contractions should be clarified.

$$ Accurate grammar, spelling and use of language are all important elements of good report

writing. Work that shows flaws or errors will be penalized when assessed.

Step $7$:

Presentation

$$ All team members must contribute to the project and participate in the project

presentation.

Assessment Break down

Step $1$ Find a construction company. $5\%$

Step $2$ Study of the financial statements of the company $10\%$

Step $3$ Common$-$size analysis $10\%$

Step $4$ Investigation of the current position and performance of the firm. $15\%$

Step $5$ Comparison, Trend Analysis and Projection $20\%$

Step $6$ Prepare a report $10\%$

Step $7$ Presentation $30\%$

Total $100\%$