RedVector RV-10440

The Ultimate Project Manager, Chapter 16: Project Financial Management

The Ultimate Project Manager, Chapter 16: Project Financial Management

1 hr. Online Course

Level: Intermediate

Item#: RV-10440

SME: Michael D'Alessandro

Average Rating

4 11
Every design firm is in the business of providing professional consulting services to its clients. To be successful and remain in this business, however, its projects must be profitable (i.e., the revenue must exceed all costs including overhead and profit expectations). In addition, clients must receive invoices in a timely manner, and your firm must receive payment for the completed work within the time specified in the contract.

A PM is assigned to each project, not only to manage the project team and to ensure that the project budget is met, but also to ensure:
  • The client receives invoices for the scope of services
  • Payments are received from the client within the contract payment period
  • The project achieves its “as-sold” financial results with no write-offs
 
In a nutshell, the PM is responsible for the project’s financial management in two primary areas: cash flow and profitability. This means the PM must be familiar with the monthly financial reporting cycles and have the ability to plan, track, and evaluate the fiscal performance of a project. He or she must understand how the project’s total gross revenue relates to the project direct labor and project expenses, including consultants. Plus, the PM must also understand how the planned and actual project performance contributes to the overall profitability of the firm. In this course we will look at all these responsibilities and concepts in detail.
Course Objectives
At the conclusion of this course, you will be able to:
  • Describe the PMs financial responsibilities to a project.
  • Identify the components of the billing process.
  • Identify the key financial performance ratios.
  • Differentiate between accrual and cash accounting.
  • Recognize the different fee adjustments that can occur within a project.
  • Explain why profit is a necessity and the steps that can be made to generate profit.
SUBJECT MATTER EXPERT: Michael D'Alessandro
Michael D'Alessandro Photo
Mr. D'Alessandro has been involved with the A/E Design and Construction Industry for more than 20 years. Prior to joining PSMJ Resources, Inc., he was with Parsons Infrastructure and Technology Group as a Principal Project Manager. His responsibilities included project management, proposal preparation, department management, and human resources management.

His extensive project management experience includes engineering, procurement, ranging in capital value from $1 million to $55 million. He has also been responsible for management of fast-track multi-discipline projects involving equity placement for both domestic and international facilities.

During his tenure as a Project/Client Manager, he successfully completed capital projects in 18 different countries. He has worked with some of the largest global companies by consistently demonstrating the ability to accomplish project budget and schedule objectives with a high degree of client satisfaction.

As a consultant, he has provided project management training since 1990 and has been involved in strategic planning for design/build initiatives and work process improvements for small project environments. He has also served as a Quality Council member, leading efforts to measure client satisfaction and improve design productivity.

Michael has a Bachelor of Science degree in Civil Engineering and a Masters Degree in Environmental Engineering. He is also certified by the Project Management Institute as a Project Management Professional (PMP) and is a member of the American Society of Civil Engineers. Michael is also a registered professional engineer in a number of states and is a Diplomate of the American Academy of Environmental Engineers.
State Licenses
AK - Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
AK - Engineer (Health, Safety & Welfare - ,)
AL - Engineer (General - ,)
AL - Landscape Architect (General - Approved LA CES-2022)
AR - Engineer (General - ,)
Canada - Northwest Territories and Nunavut Engineer (General - ,)
DC - Engineer (General - CE21800018)
DE - Engineer (Business Practice (maximum of 9 hours) - ,)
FL - Contractor, Certified (Business Practice - 0610744)
Accreditation: FL DBPR Approved Provider 0001771
FL - Contractor, Pinellas County (Business Practice - 0610744)
Accreditation: FL DBPR Approved Provider 0001771
FL - Contractor, Registered (Business Practice - 0610744)
Accreditation: FL DBPR Approved Provider 0001771
FL - Fire Protection System Contractor (Class I, II & III) (Business Practice - FP13721)
FL - Fire Protection System Contractor (Class IV) (Business Practice - FP13721)
FL - Fire Protection System Contractor (Class V) (Business Practice - FP13721)
FL - Interior Designer (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
GA - Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
GA - Contractor, Residential and General (General)
GA - Engineer (General - ,)
GA - Landscape Architect (General - Approved LA CES-2022)
IA - Engineer (General - ,)
ID - Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
ID - Engineer (General - ,)
IL - Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
IL - Engineer, Professional (General - ,)
IL - Engineer, Structural (General - ,)
IN - Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
IN - Engineer (General - Board Approved - CE21800018)
IN - Landscape Architect (General - Approved LA CES-2022)
KS - Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
KS - Engineer (Health, Safety & Welfare - ,)
KS - Landscape Architect (General - Approved LA CES-2022)
KY - Engineer (General - ,)
LA - Engineer (General - ,)
LA - Landscape Architect (General - Approved LA CES-2022)
MD - Engineer (General - ,)
MD - Landscape Architect (Category B - Approved LA CES-2022)
ME - Engineer (General - ,)
MI - Engineer (General - ,)
MN - Engineer (General - ,)
MO - Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
MO - Engineer (General - ,)
MO - Landscape Architect (General - Approved LA CES-2022)
MS - Engineer (General - ,)
MT - Engineer (General - ,)
NC - Engineer (General - ,)
ND - Engineer (General, Health, Safety & Welfare)
NE - Landscape Architect (General - Approved LA CES-2022)
NH - Engineer (General - ,)
NJ - Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
NJ - Engineer (General - 24GP000006300)
NM - Engineer (General - ,)
NM - Landscape Architect (General - Approved LA CES-2022)
NV - Engineer (General - ,)
NY - Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
NY - Engineer (General - NYS Sponsor #133)
Accreditation: RedVector is the approved provider of this course offering. RedVector has changed its name and is now operating as Vector Solutions.
NY - Landscape Architect (General - Approved LA CES-2022)
OH - Engineer (General - ,)
OH - Landscape Architect (General - Approved LA CES-2022)
OK - Engineer (General - ,)
OR - Engineer (General - ,)
OR - Landscape Architect (General - Approved LA CES-2022)
PA - Code Official,Certified (UCC) (General)
PA - Landscape Architect (General - Approved LA CES-2022)
PR - Engineer (General - ,)
RI - Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
SC - Engineer (General - ,)
SD - Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
SD - Engineer (General - ,)
SD - Landscape Architect (General - Approved LA CES-2022)
TN - Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
TN - Engineer (Health, Safety & Welfare - ,)
TN - Landscape Architect (General - Approved LA CES-2022)
TX - Engineer (General - ,)
UT - Engineer (General - ,)
VA - Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
VA - Engineer (General - ,)
VA - Landscape Architect (General - Approved LA CES-2022)
VT - Engineer (General - ,)
WA - Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
WA - Landscape Architect (General - Approved LA CES-2022)
WI - Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
WI - Engineer (General - ,)
WV - Engineer (General - ,)
WV - Landscape Architect (General (max 6 hrs online) - Approved LA CES-2022)
WY - Engineer (General - ,)
Professional Organizations
American Academy of Environmental Engineers - AAEES - Member (General - ,)
American Hospital Association - AHA - Certified Healthcare Constructor (CHC) (General)
American Hospital Association - AHA - Certified Healthcare Facility Manager (CHFM) (General)
American Institute of Architects - AIA - Architects (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
American Institute of Constructors - AIC - Professional Constructor (General)
American Society of Landscape Architects (LA CES) - ASLA - Member (General - Approved LA CES-2022)
American Society of Professional Estimators - ASPE - Certified Professional Estimator (CPE)/Associate Estimator Professional (AEP) (General)
BOMI International - RPA, FMA and/or SMA (General)
Canada - Alberta Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
Canada - Alberta Engineer (General - ,)
Canada - British Columbia Architect (AIBC) (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
Canada - British Columbia Engineer (General - ,)
Canada - Manitoba Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
Canada - Manitoba Engineer (General - ,)
Canada - New Brunswick Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
Canada - New Brunswick Engineer (General - ,)
Canada - Newfoundland and Labrador Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
Canada - Newfoundland and Labrador Engineer (General - ,)
Canada - Northwest Territory Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
Canada - Nova Scotia Engineer (General - ,)
Canada - Ontario Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
Canada - Ontario Engineer (General - ,)
Canada - Quebec Architect (General - AIA Reg RV1270-2022)
Accreditation: AIA Registered Provider J315
Canada - Quebec Engineer (General - ,)
Canada - Saskatchewan Engineer (General - ,)
Canada - Yukon Engineer (General - ,)
Construction Management Association of America - CCM - Certified Construction Manager (General)
Design-Build Institute of America - DBIA - Design-Build Professional (General)
Federal Building Personnel Training Act (FBPTA) (General)
International Facility Management Association - IFMA - Certified Facility Manager (CFM) (General)
International Society of Automation - ISA - Certifications (General)
National Institute for Certification in Engineering Technologies - NICET (General - ,)
Ontario Association of Certified Engineering Technicians and Technologists - OACETT - Certified Member (Management/Leadership Training)
Project Management Institute (PMI) - Project Management Professional (CAPM, ACP, RMP, SP) (Technical - RV-10440)
Accreditation: R.E.P. Provider 1510
Project Management Institute (PMI) - Project Management Professional (PMP, PgMP, PfMP, PBA) (Technical - RV-10440)
Accreditation: R.E.P. Provider 1510
Course Reviews (11)
great
By (Contractor / Trades) on Jun, 28, 2020
great
n/a
By (Contractor / Trades) on Jul, 03, 2020
n/a
good
By (Professional Organization) on Nov, 29, 2020
good
this helps me to understand about the project financial management
By on Mar, 08, 2021
this helps me to understand about the project financial management
great course
By (Contractor / Trades, Engineer) on May, 07, 2020
great course
thanks
By (Professional Organization) on Jun, 21, 2020
thanks..
Good content, relevant examples
By on Dec, 05, 2020
Good content, relevant examples
Financial management is not too intriguing
By on Dec, 10, 2020
Financial management is not too intriguing.
My time is not being counted
By (Contractor / Trades) on May, 17, 2020
My time is not being counted
Several of the videos in this module would not play
By (Engineer) on Sep, 06, 2020
Several of the videos in this module would not play.
quiz does not accurately reflect the full content provided
By (Architect, Professional Organization) on Sep, 18, 2020
quiz does not accurately reflect the full content provided