Analyzing Construction Contractors
List Price
$875
Member Price
$475
Event Id:
698429902
Product code:
373151-25
Format:
Prof. Dev. Course: Virtual
Date:
12/17/2024 - 12/19/2024
Registration Fees
| Members | $475 |
|---|---|
| Nonmembers | $875 |
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Item Details
This virtual course is made up of three sessions – each of the three sessions is 2.5 hours, from 2:00pm-4:30pm ET. Session 1: December 17, 2024 Session 2: December 18, 2024 Session 3: December 19, 2024
Analyzing Construction Contractors concentrates on three major topical areas of the construction contractor analysis: accounting, credit analysis, and repayment ability. The course emphasizes bank awareness of the particular conditions of contractor credit analysis so that the commercial lender can structure credit accommodations designed to support the contractor's ability to repay. In its most general terms, the course encourages that loans be made from cash flow rather than collateral. Repayment issues are addressed through an examination of cash flow from operations, future cash flow projections, collateral, bonding, and guaranties.
Methodology
Analyzing Construction Contractors treats all contractors as one line of business to demonstrate a systematic approach to contractor credit analysis. The accounting section examines the two basic accounting methods used in the construction industry: completed contract and percent completion. Subtopics to accounting include revenue recognition, loss recognition, enforceable rights, and AIPCA recommendations. The contractor status report section examines the purpose of the report, how it is assembled, the qualities of a good report, and its role in credit analysis and cash flow estimation. The credit analysis section seeks to define all factors affecting a properly structured construction loan: pricing, terms and maturity, sources of repayment, conditions, and covenants. Major topics include financing sources, company overview, and financial analysis. Subtopics of financial analysis include: revenues and expenses, liquidity, leverage, and solvency.
Objectives
Upon completion of this course, learners will be able to:
• Compare and contrast contractor accounting methods of completed contractor and
percentage of completion.
• Evaluate the contract status report.
• Analyze the operating performance, liquidity, leverage, and solvency of the contract.
• Estimate repayment ability from cash flow, collateral, and guarantees.