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Unit outline_

PMGT5873: Project Economics and Procurement

Semester 1, 2024 [Online] - Camperdown/Darlington, Sydney

Projects consume resources that must be financed and procured.  Procurement choices for a project will have implications for planning, structuring, resourcing and financing.  This Unit introduces students to a variety of procurement approaches with an emphasis on different forms of contractual arrangements, responsibilities, organisational structures, solicitation planning, governance principles including partnering and collaborative contracting.     The finance component addresses project financial appraisal and feasibility analysis and financial management applicable to all sectors of industry.  Coverage includes the design, structuring, costing, sourcing and management of project finance, credit risk analysis, the cost of capital, principles of financial accounting, capital structure, markets and securitisation, fundamentals of project economics and implementation of financial principles and techniques such as EUAC, NPV, IRR, B/C, valuation, depreciation, replacement studies and life cycle costing, sensitivity analysis, risk analysis. 

Unit details and rules

Academic unit Project Management
Credit points 6
Prerequisites
? 
None
Corequisites
? 
None
Prohibitions
? 
PMGT6873
Assumed knowledge
? 

None

Available to study abroad and exchange students

Yes

Teaching staff

Coordinator Harold Ainsworth, harold.ainsworth@sydney.edu.au
Lecturer(s) Harold Ainsworth, harold.ainsworth@sydney.edu.au
Tutor(s) Marianna Cheklin, marianna.cheklin@sydney.edu.au
The census date for this unit availability is 2 April 2024
Type Description Weight Due Length
Supervised exam
? 
Final Exam
Cover all materials from Weeks 1-12
50% Formal exam period 2 hours
Outcomes assessed: LO1 LO2 LO3 LO5 LO4 LO6
Small test Knowledge Test
Cover all materials from Weeks 1 to 7
20% Week 08
Due date: 15 Apr 2024 at 14:00
1 hour
Outcomes assessed: LO3 LO4 LO5 LO6 LO1 LO2
Assignment group assignment Group Assignment and Presentation
Report and Presentation (weeks 12-13)
30% Week 12 Please refer to details in Canvas
Outcomes assessed: LO1 LO2 LO3 LO4 LO5 LO6
group assignment = group assignment ?

Assessment summary

  • Group assignment: Group assignment has two components: written report and presentation. In weeks 12 and 13, each group needs to submit a final group assignment report and make a presentation. Members of any group must be enrolled in the same class.
  • Knowledge test: The knowledge test is an in-class/online quiz with questions related to weeks 1-7. The knowledge test is conducted in class (Week 8) for students enrolled in weekly mode, while online students will have the choice to either attend this test with the weekly class or conduct the test online via Canvas.
  • Final exam: The final exam will be conducted during the final exam period. It will cover all materials from weeks 1-12. The total mark for this individual assessment is 50.

 

Detailed information for each assessment can be found on Canvas.

Study Commitment:

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6-credit point unit, this equates to roughly 120-150 hours of student effort in total.

 

*Attendance Requirements:

Students are expected to attend a minimum of 90 percent of timetabled activities for a unit of study unless granted exception by the Dean or Head of School most concerned. A student may be determined to fail a unit of study because of inadequate attendance. Alternatively, at their discretion, they may set additional assessment items where attendance is lower than 90 percent.  Please see the Resolutions of the Faculty - Faculty of Engineering - The University of Sydney for further details.

 

Text-matching software for Assignment Submission:

As part of the assessment process, text matching software such as Turnitin may be used to identify plagiarism and/or be used for providing feedback.

 

Confidential Peer Evaluation:

As part of the group contribution assessment process, collaborative & self-peer evaluation tools (e.g. SparkPlus, CATME, etc.) may be used, either on a confidential or non-confidential basis, to understand contributions and interactions amongst group members. Marks may be adjusted for an individual team member, following on from the peer evaluation process.

 

Reliability of Canvas Marks:

Canvas will be used in this unit and while key assessments may be submitted via Canvas, it cannot be used to determine/ predict a student’s final marks in this unit. Not all assessment results may be visible to students and group/team marks can change for each individual team member based on the peer-evaluations conducted at the end of the semester.

 

Recycling Assignments Not Allowed:

Recycling involves submitting (or resubmitting) your own work that has already been assessed without the permission of the lecturer of this unit, and for which you have already been given feedback. Recycling is a form of academic dishonesty and will be handled in line with the coursework policy.

 

Mark Moderation:

There may be statistically defensible moderation when combining the marks from each component to ensure consistency of marking between markers, and alignment of final grades with unit outcomes.

 

Workshop Participation:

It is expected that students turn on the cameras during online workshops. Failure to do so, will result in the student being requested to show cause and failure to comply could be viewed as non-participation for assessment purposes.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a high distinction indicates work of an exceptional standard, a distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name

Mark range

Description

High distinction

85 - 100

 

Distinction

75 - 84

 

Credit

65 - 74

 

Pass

50 - 64

 

Fail

0 - 49

When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

  • Deduction of 5% of the maximum mark for each calendar day after the due date.
  • After ten calendar days late, a mark of zero will be awarded.

This unit has an exception to the standard University policy or supplementary information has been provided by the unit coordinator. This information is displayed below:

For every calendar day up to and including ten calendar days after the due date, a penalty of 5% of the maximum awardable marks will be applied to late work. The penalty will be calculated by first marking the work, and then subtracting 5% of the maximum awardable mark for each calendar day after the due date. Example: Consider an assignment's maximum awardable mark is 10; the assignment is submitted 2 days late; and the assignment is marked as 7/10. After applying the penalty, marks will be: 7 - (0.5 x 2) = 6/10. For work submitted more than ten calendar days after the due date a mark of zero will be awarded. The marker may elect to, but is not required to, provide feedback on such work. Refer to section 7A of Assessment procedures policy available at: http://sydney.edu.au/policies/showdoc.aspx?recnum=PDOC2012/267&RendNum=0

Academic integrity

The Current Student website provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

Use of generative artificial intelligence (AI) and automated writing tools

You may only use generative AI and automated writing tools in assessment tasks if you are permitted to by your unit coordinator. If you do use these tools, you must acknowledge this in your work, either in a footnote or an acknowledgement section. The assessment instructions or unit outline will give guidance of the types of tools that are permitted and how the tools should be used.

Your final submitted work must be your own, original work. You must acknowledge any use of generative AI tools that have been used in the assessment, and any material that forms part of your submission must be appropriately referenced. For guidance on how to acknowledge the use of AI, please refer to the AI in Education Canvas site.

The unapproved use of these tools or unacknowledged use will be considered a breach of the Academic Integrity Policy and penalties may apply.

Studiosity is permitted unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission as detailed on the Learning Hub’s Canvas page.

Outside assessment tasks, generative AI tools may be used to support your learning. The AI in Education Canvas site contains a number of productive ways that students are using AI to improve their learning.

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

Support for students

The Support for Students Policy 2023 reflects the University’s commitment to supporting students in their academic journey and making the University safe for students. It is important that you read and understand this policy so that you are familiar with the range of support services available to you and understand how to engage with them.

The University uses email as its primary source of communication with students who need support under the Support for Students Policy 2023. Make sure you check your University email regularly and respond to any communications received from the University.

Learning resources and detailed information about weekly assessment and learning activities can be accessed via Canvas. It is essential that you visit your unit of study Canvas site to ensure you are up to date with all of your tasks.

If you are having difficulties completing your studies, or are feeling unsure about your progress, we are here to help. You can access the support services offered by the University at any time:

Support and Services (including health and wellbeing services, financial support and learning support)
Course planning and administration
Meet with an Academic Adviser

WK Topic Learning activity Learning outcomes
Ongoing Independent study guided by the online contact and lectures. You are expected to undertake 8-10 hours per week on independent study in addition to workshops Independent study (100 hr) LO1 LO2 LO3 LO4 LO5 LO6
Week 01 Unit introduction. Introduction to Project Finance. Introduction to Procurement. Online class (2 hr) LO1
Week 02 Time value of money. Compound interest. NPV, IRR, Payback Period, WACC, BCR, ROI Online class (2 hr) LO1
Week 03 Understanding the asset. UACC, Life Cycle Cost Analysis, Depreciation. Online class (2 hr) LO1
Week 04 Structuring projects. Case studies (AP Amoco, Boeing, Disney) Online class (2 hr) LO1 LO5
Week 05 Financial instruments. Elements of Bonds. Bonds and Project Finance. Online class (2 hr) LO4 LO5 LO6
Week 06 Financial statements (balance sheet, cash flow statement, income statement). EVA, FCF, Cash Budget. Online class (2 hr) LO1
Week 07 Contracts. Project delivery methods. Tendering process. Contracts used as risk mitigation. Online class (2 hr) LO1 LO5 LO6
Week 08 Knowledge test. Group work checkpoint. Online class (2 hr) LO1 LO2 LO3 LO4 LO5 LO6
Week 09 Risks in project finance. Procurement strategies as risk mitigation in project finance. Online class (2 hr) LO1 LO5 LO6
Week 10 Game theory, decision theory, statistics, negotiations - link with Project Finance. Online class (2 hr) LO1 LO4 LO5 LO6
Week 11 Group revision exercise. Final grop assignment check-point. Online class (2 hr) LO1 LO6
Week 12 Group presentations Online class (2 hr) LO1 LO2 LO3 LO4 LO5 LO6
Week 13 Team presentations Online class (2 hr) LO1 LO2 LO3 LO4 LO5 LO6

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

All readings for this unit can be accessed through the Library eReserve, available on Canvas.

  • Grant, Ireson and Leavenworth, Principles of Engineering Economy (Latest). J. Wiley & Sons

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

At the completion of this unit, you should be able to:

  • LO1. Demonstrate a working knowledge of the fundamentals of project finance and practical understanding of the framework typically used to analyse proposals in public and private sectors
  • LO2. Demonstrate a basic understanding of the various methods for life cycle cost determination,valuation, depreciation and capitalisation methods and their application
  • LO3. Analyse various funding options and their effective selection and management in order to ensure the project's business objectives
  • LO4. Perform multi-criteria analysis, using a variety of typical financial analysis techniques, for optimum selection and application of a given project appraisal to meet specific business objectives
  • LO5. Describe, select and apply procurement strategies appropriate to different project contexts
  • LO6. Facilitate the negotiation and agreement of contractual terms and conditions, manage the procurment process and pre-contarctual issues that address project and stakeholder objectives

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1 Depth of disciplinary expertise

Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.

GQ2 Critical thinking and problem solving

Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.

GQ3 Oral and written communication

Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.

GQ4 Information and digital literacy

Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.

GQ5 Inventiveness

Generating novel ideas and solutions.

GQ6 Cultural competence

Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.

GQ7 Interdisciplinary effectiveness

Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.

GQ8 Integrated professional, ethical, and personal identity

An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.

GQ9 Influence

Engaging others in a process, idea or vision.

Outcome map

Learning outcomes Graduate qualities
GQ1 GQ2 GQ3 GQ4 GQ5 GQ6 GQ7 GQ8 GQ9

This section outlines changes made to this unit following staff and student reviews.

Substantial changes have been made to the course design and delivery structure. New weekly content (Machine learning and Probability) were added to the course curriculum.

Expected Conduct:

It is every student's responsibility to behave in accordance with the values and principles of mutual ­respect between staff, students and the University – see the Student Charter. This entails respecting all members of our diverse community and racism, sexism, ageism, dishonesty or defamation will not be tolerated, and instances will be reported to the authorities.

Work, health and safety

The University is dedicated to ensuring that all students have equal access to learning. Students can register with Disability Services and gain access to the adjustments and services they need to succeed in their studies. Faculty Disability Liaison Officers (FDLOs)  can provide quick advice and support specific to your learning environment.  As a student with a disability, Disability Services Officers are your main point of contact. Eligibility for these services is determined on an individual needs basis, upon review of the recommendations made in your supporting documentation and your consultation with a Disability Services Officer.

Our students’ wellbeing is our highest priority. The University offers several support channels to help you find relief from current emotional distress, explore coping strategies and advice pathways for longer term solutions:

 

  • Wellbeing support

If you would like support or to talk confidentially about any concerns that may be impacting on your academic performance or mental health and wellbeing with the Student Wellbeing team, the first step is to fill in this form. Once your form is received, a clinician from Student Wellbeing will call you within 1-2 business days to discuss your support needs.

 

  • Sonder

All University of Sydney International Students have free access to Sonder, a 24/7 on-demand safety and wellbeing app, to get you the support you need whenever you need, wherever you are.

Learn more: sydney.edu.au/students/sonder.html

 

  • Innowell

This is free to all students at the University. It is a digital platform designed to give you 24/7 on demand access to tools that assist in self-management of mental wellbeing and health and provide information about how to seek help as needed.

Learn more: sydney.edu.au/students/innowell.html

 

  • After hours mental wellbeing support line

If you’re in Australia and require support after hours, you can contact the Mental Wellbeing Support Line by calling 1300 474 065 or by texting 0488 884 429.

The Mental Wellbeing Support Line is available after 5pm from Monday to Friday, 24 hours on Saturday and Sunday, and during University close-down periods and public holidays.

 

  • Talk Campus

Life is full of challenges, and we want you to know that however you feel is valid. Download the Talk Campus mental health support app for free and instant access to online peer support 24/7, wherever you are in the world and in your own language:

Sign up: sydney.edu.au/students/talkcampus.html

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

To help you understand common terms that we use at the University, we offer an online glossary.