The University of Texas at Austin Spring 2003 Department of Civil Engineering
Capital Facility Finance
Unique Number 13838 (3 hrs.)
Prerequisites: Graduate standing and College of Engineering; or COI
Professor: Dr. G. Edward (Edd) Gibson, Jr.
ECJ, Rm. 5.208
(512) 471-4522; FAX (512) 471-3191
Meetings: Lecture: 1:00 – 2:15 Monday and Wednesday, Room ECJ 5.418
(Alternative meeting time: Friday 1:00 – 2:15, TBA)
Office Hours: Monday and Wednesday 2:30-4:00 pm.
Or by appointment
Course Catalog Description: Corporate and project budgeting; Pre-project planning of capital facilities; Cash flow analysis; Principles and applications of construction project financing and
accounting; International project finance.
1. To give the student a knowledge of financing and financial implications of capital projects from
the perspective of the major participants--owners, designers, constructors, and financial institutions.
This perspective will follow the lifecycle of a project.
2. To give the student an intimate understanding of the project life cycle and particularly pre-project
planning and its impact on and relationship with project finance.
3. To give the student a chance to apply course concepts in selected case study applications.
4. To meet the course objectives set by the students.
Others to be determined by the class and refined as the course evolves.
The large majority of this class will be survey-type lectures and group exercises. The
objectives as defined will be met through informal classroom lectures, guest lecturers, videos, class
discussion, individual research papers, group exercises, short homework assignments, and student
presentations. Each student will therefore be given the opportunity to influence the direction of the
http://pro.engr.utexas.edu/ course ID: 2993, password: 13838
Available through Dr. Gibson and required:
Construction Industry Institute (1995). Pre-Project Planning Handbook, Special Publication 39-2,
Selected articles and references; TBA
Other reference material used in preparation of lectures:
Adrian, J. J. (1986) Construction Accounting: Financial, Managerial, Auditing, and Tax, 2d Edition,
Prentice-Hall, Englewood Cliffs, NJ.
Bringham, E. (1984) Financial Management Theory and Practice, 4th edition, The Dryden Press,
Clark, F. and Lorenzoni, A. (1997) Applied Cost Engineering, 3
rd Edition, Marcel Dekker, Inc.,
Construction Industry Institute (1987). Project Materials Management Handbook, Special
Publication 004, Austin, TX.
Cushman, R. F. (1978) Construction Business Handbook, McGraw-Hill Book Co., New York.
Halpin, D. W. (1985) Financial and Cost Concepts for Construction Management, John Wiley &
Sons, New York.
Horngren, C. T. (1984) Introduction to Management Accounting, 6th edition, Prentice-Hall, Inc.,
Englewood Cliffs, NJ.
Newell, J. (1979). Builders Guide to Construction Financing, Craftsman Books, Carlsbad, CA.
Palmer, W., Coombs, W. and Smith, M. (1995). Construction Accounting and Financial
Management, 5th edition, McGraw-Hill, New York.
Pyle, W. and Larson, K. (1981). Fundamental Accounting Principles, 9th edition, Richard D. Irwin,
Inc., Homewood, IL.
Riggs, H. (1994). Financial and Cost Analysis for Engineering and Technology Management, John
Wiley & Sons, Inc., New York.
Shtub, A., Bard, J., and Globerson, S. (1994). Project Management, Prentice-Hall, Englewood Cliffs,
Thomsett, M. (1987). Builders Guide to Accounting, 2d edition, Craftsman Books, Carlsbad, CA.
Thorne, H. C. and Piekarski, J. A. (1995). Techniques for Capital Expenditure Analysis, Marcel
Dekker, Inc., New York.
Van Horne, J. (1980). Fundamentals of Financial Management, 4th edition, Prentice-Hall,
Englewood Cliffs, NJ.
Grading: 2/3 Term Exam 30%
Report 1 (individual) 15%
Report 2 (individual) 15%
Group Projects 35%
Course Letter Grades: Numerical Grade 91-100 A
All exams are closed book, closed notes unless otherwise indicated. The instructor reserves
the right to adjust letter grades, upward only, based on individual attendance and class participation
if numerical grade warrants such consideration. Students who violate University rules on scholastic
dishonesty are subject to disciplinary penalties, including the possibility of failure in the course and
dismissal from The University. Since dishonesty harms the individual, all students, and the integrity
of The University, policies on scholastic dishonesty will be strictly enforced. ((See General
Information, The University of Texas at Austin, 2001-2002, Appendix C, Subchapters 11-801 and 11-802, Student Standard of Conduct, pg 173-4 (or see
individual assignments are not group projects and do not build on the efforts of others without due reference.
Students with Disabilities:
The University of Texas at Austin provides, upon request, appropriate academic adjustments
for qualified students with disabilities. Any student with a documented disability (physical or
cognitive) who requires academic accommodations should contact the Services for Students with
Disabilities area of the Office of the Dean of Students at 471-6259 as soon as possible to request an
official letter outlining authorized accommodations. For more information, contact that Office, or
TDD at 471-4641, or the College of Engineering Director of Students with Disabilities at 471-4321.
Web-based, password-protected class sites may be associated with all academic courses
taught at the University. Syllabi, handouts, assignments and other resources are types of information
that may be available within these sites. Site activities could include exchanging email, engaging in
class discussions and chats, and exchanging files. In addition, electronic class rosters will be a
component of the sites. Students who do not want their names included in these electronic class
rosters must restrict their directory information in the Office of the Registrar, Main Building, Room
1. For information on restricting directory information, see the Course Schedule, Undergraduate
Catalog or go to: http://www.utexas.edu/student/registrar/catalogs/gi00-01/app/appc09.html.
Each student will be given the opportunity to evaluate the course using the standard
course/instructor evaluation form during the last week of classes.
Exams will include material covered in reading assignments and class discussions. Exam
make-up's will be given only in the event of a verified emergency or doctor-verified sickness.
Assignments turned in late will be counted off 20 percent per day--only exceptions listed previously.
The student is responsible for all reading assignments and class handouts whether or not covered in
class or listed on the syllabus.
The following list ? of important course dates is for your information: ? No classes on
January 20 for MLK holiday or during the week of March 10 due to spring break. January 29 is the
last day to drop a class for a possible refund. February 10 is the last day to drop a class without a
possible academic penalty. March 24 is the last day to change the course to/from Credit/No Credit
or pass/fail. May 2 is the last day a graduate student may, with the approval of the instructor, the
graduate adviser, and the graduate dean, drop a course. ?
2/3 term Exam: 14 April
Final Exam: none
Individual Reports: TBA
Group Projects: TBA FILENAME: FIN_SYL_s03.doc
The University of Texas at Austin Spring 2003
Department of Civil Engineering
COURSE SCHEDULE—TENTATIVE (UP TO DATE IN PROMETHEUS)
WEEK REFERENCE MATERIAL
Week 1, 13 January
Introduction/terminology Misc. Handouts; Pub. 39-1, Tab 5 notes,
Halpin (ch. 1) handout, Thorne (ch. 1) Forms
of Organization handout, Brigham No lecture on 13 January Make-up on Friday 17 January
Week 2, 20 January
No class held on 20 January MLK Holiday (no makeup)
Introduction/terminology (cont’d) Misc. Handouts; Pub. 39-1, Tab 5 notes,
Halpin (ch. 1) handout, Thorne (ch. 1) Forms
of Organization handout, Brigham
Week 3, 27 January.
Pre-Project Planning—Overview Handouts, Tab 5-7 Notes, CII Sp. Pub. 39-2;
Class held on 27, 29, 31 January
Week 4, 3 February
No class held on 5 February 14 February
PDRI Handouts, notes in Prometheus
Week 5, 10 February
Financial Issues Misc. Handouts; Brigham, Shtub, Van Horne,
Thorne, Tab 7 of notes (reference) Financial Accounting; Balance sheet, Income Stmt. Misc. Handouts
Financial Planning & Analysis Tab 1-2 Notes, Misc. Handouts; Brigham ch.8-
Week 6, 17 February
Financial Planning & Capital Budgeting Tab 3 Notes, Misc. Handouts; Brigham ch.8-10
Week 7, 24 February
Funding Sources Misc. Handouts; Van Horne (ch 14) handout,
Brigham ch.8-10; Tab 4 of notes
Week 8, 3 March
International Financing and risk assessment Misc. Handouts
Business Planning Exercise Misc. Handouts
No classes held week of 10 March Spring break (no makeup)
Week 9, 17 March
No class held on 17 March Makeup 31 January No class held on 19 March Makeup 18 April
APPLIED PRE-PROJECT PLANNING
Week 10, 24 March
Pre-Project Planning—Organizing for PPP; Handouts, Tab 5-7 Notes, CII Sp. Pub. 39-2 alignment
No class held on 24 March Makeup 28 March
Week 11, 31March
Pre-Project Planning—Selecting Alternatives Handouts, Tab 5-7 Notes, CII Sp. Pub. 39-2 No class held on 2 April Makeup 4 April
Week 12, 7 April
Pre-Project Planning—Developing a Project Handouts, Tab 5-7 Notes, CII Sp. Pub. 39-2 Definition Package
Week 13, 14 April
2/3 term exam 14 April
Pre-Project Planning—Making the Decision Handouts, Tab 5-7 Notes, CII Sp. Pub. 39-2
Classes on 14, 16, and 18 April
Week 14, 21 April
Pre-Project Planning—Risk Implications Handouts, Tab 5-7 Notes, CII Sp. Pub. 39-2
Week 15, 28 April
Evaluation of course
Final Examination: none