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Course Detail

Course Name Construction Economics and Finance
Course Code 15CVL443
Program B. Tech. in Civil Engineering
Year Taught 2019


Unit 1

Engineering economics: Basic principles – Time value of money, Quantifying alternatives for decision making, Cash flow 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), Arithmetic gradient, Geometric gradient.

Unit 2

Comparison of alternatives: 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. Depreciation, Inflation and Taxes. Equipment economics: Equipment costs, Ownership and operating costs, Buy/ Rent/Lease options, Replacement analysis.

Unit 3

Cost estimating: Types of Estimates, Approximate estimates – Unit estimate, Factor estimate, Cost indexes, Parametric estimate, Life cycle cost. Financial management: Construction accounting, Chart of Accounts, Financial statements – Profit and loss, Balance sheets, Financial ratios, Working capital management.

Text Books

  1. Bose, D. C., “Fundamentals of Financial management”, 2nd ed., PHI, New Delhi, 2010.
  2. Prasanna Chandra, “Projects: Planning, Analysis, Selection, Financing, Implementation and Review”, Tata McGraw – Hill Education, 2009


  • Gould, F. E., “Managing the Construction Process”, 4th ed., Pearson Education, 2012.
  • Harris, F., McCaffer, R. and Edum-Fotwe, F., “Modern Construction Management”, 6th ed., Wiley India, New Delhi, 2006.
  • Jha, K. N., “Construction Project Management, Theory and Practice”, Pearson, New Delhi, 2011.
  • Peurifoy, R. L. and Oberlender, G. D., “Estimating Construction Costs”, 5th ed., Tata McGraw-Hill, New Delhi, 2004.

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