Location (tentative): Leo 233 (Manhattan College Leo Hall, 3825 Corlear Ave, Bronx, NY 10463). 

Dates: Mondays 1/23/23, 1/30, 2/6, 2/13, 2/20, 2/27 (MIDTERM EXAM), 3/6, 3/20, 3/27, 4/3, Wed 4/12, 4/17, 4/24, 5/1, and 5/8/22 (PRESENTATION & FINAL PROJECT DUE). Total 15 sessions. Time: 6:30-9:15 pm.

Course Summary: This course teaches the cost engineering tools that are typically encountered in construction management, and is based on the Construction Financial tools in Procore- one of the leading providers of cloud-based applications for construction. Students develop a thorough understanding of cost management theory, workflows, calculations, documentation, and reporting, and the intricate role of user permissions. Topics include cost control, budget, prime contract, commitments (subcontracts and purchase orders), change events, rough estimates, proposals, change orders, trade allowance tracking, budget transfers, prime invoices, commitment invoices, sub jobs, reporting, and internal auditing. The payment application process and retainage calculations are thoroughly explained. Transition to a Guaranteed Maximum Price (GMP) contract structure with associated holds and allowances. Learn to develop change management workflows based on sound cost engineering rules.

Required Textbook: 

Course Topics: 

Part 1 (Mid-Term Exam Topics)

  • Overview of Procore®, a leading cloud-based project management software. Overview of Project Stakeholder Roles and Titles. Overview of Financial Management: Cost Codes, Cost Types, Prime Contract, Budget, Commitments, Change Orders, Change Events, Direct Costs, Invoicing, Budget Views and Cost Control

  • Drawings and Specifications.

  • Budget Setup with Considerations for Purchasing Strategy v. Project Estimate Breakdown

  • Commitments: Trade Contracts, Purchase Orders, Schedule of Values (SOV)

  • Prime Contract:  SOV, Financial Markups (Construction Contingency, General Conditions, Fee, Insurance, Bond, etc.)

  • American Institute of Architects (AIA)-based Payment Applications (Invoices) and Billing Periods

  • Change Event Workflow and Rough Order of Magnitude (ROM)

  • Requests for Quotation (RFQs), Commitment Change Orders (CCOs)

  • Prime Potential Change Orders (Prince PCOs), Prime Contract Change Orders (PCCOs)


Part 2 (Included in Final Project)

  • Invoicing Part 2: Change Order Invoicing, Stored Materials Tracking, and Sliding Scale Retention

  • Standard and Custom Budget Views, Budget Snapshots

  • Budget Transfers, Remaining Contingency, Funding the Commitments, and Balancing the Budget

  • Contingencies: Trade Contingency (Forecast to Complete), Construction Contingency, and Owner Contingency

  • Commitment Allowances: Tracking and Billing

  • Guaranteed Maximum Price (GMP) Contract, Budget Considerations (GMP Holds & Allowances), Multi-Prime Contract Approach

  • Bidding Tool

  • RFI Tool

  • Change Event QA/QC Audits