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

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 - Engineer (Health, Safety & Welfare - ,)
AL - Engineer (General - ,)
AL - Landscape Architect (General - Approved LA CES-2026)
AR - 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, Palm Beach County (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)
GA - Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
GA - Contractor, Residential and General (General)
GA - Engineer (General - ,)
GA - Landscape Architect (General - Approved LA CES-2026)
IA - Engineer (General - ,)
ID - Engineer (General - ,)
IL - Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
IL - Engineer, Professional (General - ,)
IL - Engineer, Structural (General - ,)
IL - Landscape Architect (General - Approved LA CES-2026)
IN - Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
IN - Engineer (General - Board Approved - CE21800018)
IN - Landscape Architect (General - Approved LA CES-2026)
KS - Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
KS - Engineer (Health, Safety & Welfare - ,)
KS - Landscape Architect (General - Approved LA CES-2026)
KY - Engineer (General - ,)
LA - Engineer (General - ,)
LA - Landscape Architect (General - Approved LA CES-2026)
MD - Engineer (General - ,)
MD - Landscape Architect (General - Approved LA CES-2026)
ME - Engineer (General - ,)
MI - Engineer (General - ,)
MI - Landscape Architect (General - Approved LA CES-2026)
MN - Engineer (General - ,)
MO - Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
MO - Engineer (General - ,)
MO - Landscape Architect (General - Approved LA CES-2026)
MS - Engineer (General - ,)
MT - Engineer (General - ,)
NC - Engineer (General - ,)
ND - Engineer (Health, Safety & Welfare - ,)
NE - Landscape Architect (General - Approved LA CES-2026)
NH - Engineer (General - ,)
NJ - Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
NJ - Engineer (General - 24GP000006300)
NM - Engineer (General - ,)
NM - Landscape Architect (General - Approved LA CES-2026)
NV - Engineer (General - ,)
NY - Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
NY - Engineer (General)
Accreditation: Vector Solutions is authorized by IACET to offer 0.1 CEU for this program.
NY - Landscape Architect (General - Approved LA CES-2026)
OH - Engineer (General - ,)
OH - Landscape Architect (General - Approved LA CES-2026)
OK - Engineer (General - ,)
OR - Engineer (General - ,)
OR - Landscape Architect (General - Approved LA CES-2026)
PA - Code Official,Certified (UCC) (General)
PA - Landscape Architect (General - Approved LA CES-2026)
PR - Engineer (General - ,)
SC - Engineer (General - ,)
SD - Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
SD - Engineer (General - ,)
SD - Landscape Architect (General - Approved LA CES-2026)
TN - Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
TN - Engineer (Health, Safety & Welfare - ,)
TN - Landscape Architect (General - Approved LA CES-2026)
TX - Engineer (General - ,)
UT - Engineer (General - ,)
VA - Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
VA - Engineer (General - ,)
VA - Landscape Architect (General - Approved LA CES-2026)
VT - Engineer (General - ,)
WA - Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
WA - Landscape Architect (General - Approved LA CES-2026)
WI - Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
WI - Engineer (General - ,)
WV - Engineer (General - ,)
WV - Landscape Architect (General (max 6 hrs online) - Approved LA CES-2026)
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 - RV1270-2025)
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-2026)
American Society of Professional Estimators - ASPE - Certified Professional Estimator (CPE)/Associate Estimator Professional (AEP) (General)
BOMI International - RPA, FMA and/or SMA (General)
Building Operator Certification - BOC - Certification (General)
Canada - Alberta Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
Canada - Alberta Engineer (General - ,)
Canada - British Columbia Architect (AIBC) (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
Canada - British Columbia Engineer (General - ,)
Canada - Manitoba Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
Canada - Manitoba Engineer (General - ,)
Canada - New Brunswick Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
Canada - New Brunswick Engineer (General - ,)
Canada - Newfoundland and Labrador Engineer (General - ,)
Canada - Northwest Territories and Nunavut Engineer (General - ,)
Canada - Northwest Territory Architect / Restricted Practitioner (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
Canada - Nova Scotia Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
Canada - Nova Scotia Engineer (General - ,)
Canada - Ontario Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
Canada - Ontario Engineer (General - ,)
Canada - Prince Edward Island Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
Canada - Prince Edward Island Engineer (General - ,)
Canada - Quebec Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
Canada - Quebec Engineer (General - ,)
Canada - Saskatchewan Architect (General - RV1270-2025)
Accreditation: AIA Registered Provider J315
Canada - Saskatchewan Engineer (General - ,)
Canada - Yukon Engineer (General - ,)
Construction Management Association of America - CMAA - (CCM, CACM) (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) - Certified Associate in Project Management (CAPM) (Ways of Working - RV-10440)
Accreditation: R.E.P. Provider 1510
Project Management Institute (PMI) - Program Management Professional (PgMP) (Ways of Working - RV-10440)
Accreditation: R.E.P. Provider 1510
Project Management Institute (PMI) - Project Management Professional (PMP) (Ways of Working - RV-10440)
Accreditation: R.E.P. Provider 1510