The University of Texas at Austin Department of Civil, Architectural and Environmental Engineering

Transcription

1 The University of Texas at Austin Department of Civil, Architectural and Environmental Engineering ARE 323K Project Management and Economics Spring 2014 Unique: (for 8:00am section) and (for 9:30am section) INSTRUCTOR: Dr. Fernanda Leite ECJ MEETINGS: 15490: Tuesdays and Thursdays 8:00am-9:30am. CPE : Tuesdays and Thursdays 9:30am-11:00am. CPE OFFICE HOURS: Tuesdays and Thursdays 11:00am-Noon or by appointment. I encourage students to come see me to address any questions or concerns about the course material or other issues. If you are unable to come to my office during my office hours, the next best method to get in touch with me is by . Please allow 24 hours for an response on business days. WEB PAGE: You will find the online materials for this course at the Blackboard web site at: COURSE CATALOG DESCRIPTION: Solving economic problems related to construction and engineering; construction project management techniques; characteristics of construction organizations, equipment, and methods. PREREQUISITE: Mathematics 408D ACADEMIC/LEARNING GOALS: This class is an introduction to project management and economics, which in real life are closely related topics. It is hard to be a good project manager without a working knowledge of finance and cash flow. And while some people get really good at economic calculations, applying the results usually takes some project management skill, whatever the domain. As such, my two main objectives for the course are: (1) Learn the basics of how a project comes together (time line, main components, participating organizations, etc.). Applications will be construction focused, but many of the ideas are generalizable. (2) Learn to be smart about money on projects (investment, budgeting, risk and decision making). By taking this class you will be able to: (1) Define and describe the main elements in the project timeline and as well as the major subelements (2) Apply net present value and related concepts to the analysis of cash flows, including selection of alternatives (3) Develop elementary project schedules and perform basic scheduling calculations (4) Estimate construction costs and prepare a basic bid package (5) Identify risks in each phase and apply sensitivity analysis to quantify risks in cost and time where possible/practicable. Spring

2 TEXTBOOK AND READINGS: NOTE: All assigned readings are required to be completed before class. As I expect you to be familiar with them, I have every right to ask you questions about the reading during class time. There are two required textbooks for the course. The first is available at the bookstore: Newnan, Lavelle, and Eschenbach. (2012). Engineering-Economic Analysis. 11th Edition. Oxford University Press, New York/Oxford. The second textbook is available free online! We will use it as a general reference. Hendrickson and Au. (2000/3). Project Management for Construction. Available at Supplemental reading material will be distributed on the course website (Blackboard) or in class. GRADING: Grade components will be weighted as follows in the computation of the final course grade: Quiz 1 10% Midterm 20% Quiz 2 10% Final Exam 20% Homework 20% (individual weights vary by size of assignment) Project 10% Discussion write-ups 5% Class Participation 5% (attendance) 100% The correspondence of letter grade to numerical grade is: A: grade 93 A-: 90 grade < 93 B+: 87 grade < 90 B: 83 grade < 87 B-: 80 grade < 83 C+: 77 grade < 80 C: 73 grade < 77 C-: 70 grade < 73 D+: 67 grade < 70 D: 63 grade < 67 D-: 60 grade < 63 F: grade < 60 As the plus/minus system allows fairer grading, assigned grades will strictly follow calculated scores. Quizzes, midterm, and final are closed book, closed notes examinations. I may curve exam scores upward if the class mean is low. Calculators are allowed provided you haven t programmed them with notes. The final will be cumulative. Other exams will cover part of the class material (subjects will be announced in class). Exams may include problems, definition/matching, multiple choice, and short answer questions as appropriate to the material covered. This class has both quantitative and qualitative elements and both will be tested. Homework consists of traditional problem sets as well as short written questions relating to the course materials and reading. Homework assignments should be completed individually, but I encourage study groups for discussion. Length of homework assignments will vary, and weighting of homework grades will Spring

3 vary with length and difficulty. Discussion write-ups are short one page or so written homework done in groups of three. Preferably these will be natural study groups. There will be a write-up about every two or three weeks based on a short reading or response to a video. The intent is to get you thinking about broader issues related to class materials. Write-ups will be due at the beginning of class and serve as the basis of discussion. I will randomly call on a group to start discussion by giving their answers to the write-up questions. All assignments are due at the beginning of the period assigned and those turned in late will count off 10% per day. Late period begins 10 minutes after class start time (e.g., if class starts at 9:30am, any assignment turned in after 9:40am is considered late). GRADE DISPUTES: Your grades will be posted on Blackboard and you should check there often to make sure that the posted scores are correct. Any grade disputes need to be made in writing to the instructor up to 3 calendar days after the grades have been posted on blackboard or distributed in class, whichever occurs first, regardless of whether the student in question was present in class or not. No dispute will be accepted after the deadline. ATTENDANCE: Class participation (5% of your class grade) is based on attendance. Attendance in this class is strongly encouraged. There is a lot of learning that goes on in the classroom, so I want students to attend and participate. As such, I will take attendance with a class roster most days (you sign by your name). If you do not want your name on this list, contact me as soon as possible to make other arrangements. Class attendance will count towards class participation grade. Students get one unexcused absence free. After that, each unexcused absence counts as one letter grade less towards your final score for class participation. Please contact me ahead of the class if you need an excused absence (e.g., travel for job interview, student activity, etc. Family fun is NOT an excused absence). I hold the right to request official evidence/documentation to explain your absence. An from yourself may not be accepted as proper documentation. If you miss a class due to illness (or death other than your own) and were not able to contact me before class, please provide me with evidence of your illness (e.g., doctor s note. An from yourself stating you were sick does not qualify as proper evidence) the next class day you attend. Note: No free unexcused absences are allowed on days with guest speakers (e.g., no freebies on days when people take the time to come and speak to you!). Note 2: extended absences without excuse are grounds for a failing grade in the course (per university policy). If you have a long-term problem or family emergency, please talk with me about it as soon as possible so we can make mutually agreeable accommodations. It is difficult for me and generally unfair to other students if you approach me after the fact. The instructor will not accept absence excuses after the fact. For example, if you did not attend class and did not provide evidence that would qualify for an excused absence before your absence or, in case of illness or death in the family, by the next class you attended, your absence cannot be excused. COURSE/INSTRUCTOR EVALUATIONS: An evaluation of the course and instructor will be conducted at the end of the semester using the approved UT Course/Instructor evaluation forms. Feedback from students will be requested throughout the semester. GENERAL ADMINISTRATIVE RULES AND ANNOUNCEMENTS: Scholastic dishonesty policy: Students who violate University rules on scholastic dishonesty are subject to disciplinary penalties, including the possibility of failure in the course and/or dismissal from the University. Since such dishonesty harms the individual, all students, and the integrity of the University, policies on scholastic Spring

4 dishonesty will be strictly enforced. For further information, visit the Student Judicial Services web site Students with disabilities: The University of Texas at Austin provides, upon request, appropriate academic accommodations for qualified students with disabilities. For more information, contact the Division of Diversity and Community Engagement, Services for Students with Disabilities, (voice) or (video phone) or Counseling: The University of Texas at Austin maintains extensive counseling facilities for students. Resources are available at The instructor recommends that you visit this website to become acquainted with the range of services available. Drop policy for long sessions: Undergraduate Students: From the 1st through the 12th class day, an undergraduate student can drop a course via the web and receive a refund, if eligible. From the 13 th class day through the university s academic drop deadline, a student may Q drop a course with approval from the Dean, and departmental advisor. After the academic drop deadline has passed, a student may drop a course only with Dean s approval, and only for urgent, substantiated, non-academic reasons. Graduate Students: From the 1st through the 4th class day, graduate students can drop a course via the web and receive a refund. During the 5th through 12th class day, graduate students must initiate drops in the department that offers the course and receive a refund. After the 12th class day, no refund is given. No class can be added after the 12th class day. From the 13th through the 20th class day, an automatic Q is assigned with approval from the Graduate Advisor and the Graduate Dean. From the 21st class day through the last class day, graduate students can drop a class with permission from the instructor, Graduate Advisor, and the Graduate Dean. Students with 20-hr/week GRA/TA appointment or a fellowship may not drop below 9 hours. Class web sites, use, and student privacy: This class will use Blackboard for posting course announcements, changes to the syllabus, schedule, grades, additional reading materials, assignments, etc. I will also send messages via over the course list which I inherit from the registrar/clips. IT IS YOUR RESPONSIBILTY to make sure that address is up-to-date and an address you read frequently and one that has space to receive messages. s bounced back to me are not my responsibility. As to privacy, let me know as soon as possible if you do not want your name on class lists, etc. The University has this policy: Web-based, password-protected class sites will 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 , 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 Undergraduate Catalog. IMPORTANT DATES: No classes on March 11 and 13 due to Spring Break. January 16 is the last day of the official add/drop period; after this date, changes in registration may require the approval of the department chair and usually the student s dean. January 29 is the last day to drop a class for a possible refund. March 31 is the last day to change the course to/from pass/fail. March 31 is the last day an undergraduate student may, with the dean s approval, withdraw from the University or drop a class except for urgent and substantiated, nonacademic reasons. Spring

5 SCHEDULE: Note: The course schedule is subject to change. Any changes in the course schedule will be communicated in advance and posted in the course Blackboard web page. Week Lect. Date Topic Reading Assignment 1 1 Jan 14 Course Introduction HW#1 due Jan 16 2 Jan 16 Learning Styles/ Project Lifecycle Hendrickson Chapter Jan 21 Project Organizations Hendrickson Chapter 2 HW#2 due Jan 28 4 Jan 23 Owners perspectives / project selection & feasibility Newnan chaps 1&2 (skim); Hendrickson chap Jan 28 Discounting/NPV formulations Newnan chaps 3&4, 6 Jan 30 Discount/PV examples 4 7 Feb 04 QUIZ 1 Internal Rate of Return (IRR) - Feb 06 NO CLASS due to inclement weather chap 5 pp Newnan chaps 7&8 (ignore appendices) HW#3 due Feb 04 HW#4 due Feb Feb 11 IRR, Incremental Analysis 9 Feb 13 Other analysis techniques I Newnan chaps 9&10 HW#5 due Feb Feb 18 Other analysis techniques II 11 Feb 20 Depreciation Newnan chap 11 HW#6 due Mar Feb 25 Taxes Newnan chap 12 - Feb 27 Rebuilding Ground Zero video part 1 Discussion 1 due Mar Mar 04 Review - Mar 06 MIDTERM 9 - Mar 11 No class Spring Break - Mar 13 No class Spring Break Mar 18 Discussion on Rebuilding Ground Zero video + Newnan chap 14 Interlude: inflation and the time value of money 15 Mar 20 Project Scheduling I Hendrickson Chapter HW#7 due Apr Mar 25 Project Scheduling II / 4D simulation 17 Mar 27 Estimating + Intro to blueprint reading Hendrickson Chapter 5, RS Means 12 - Apr 01 Guest Lecture, UT Projects overview Group Project due Apr Apr 03 Bidding and Contracts ENR Bidding Reading Apr 08 Alternative Scheduling Techniques HW#8 due Apr 15 - Apr 10 RFI Day with UT Project Managers Apr 15 Vis Lab Field Trip: Building Information Modeling - POB (Peter O Donnell Jr. Building) Room Apr 17 Bid Day (Group Project) 15 - Apr 22 Rebuilding Ground Zero video part 1 Discussion 2 due Apr 29 - Apr 24 QUIZ Apr 29 Project Controls & Safety Management To be announced 22 May 01 Course review FINAL EXAM: For 8:00am class: Saturday, May 10, 9:00-12:00 noon, location CPE For 9:30am class: Friday, May 9, 9:00-12:00 noon, location CPE Spring