COVENANT UNIVERSITY, OTA
COURSE COMPACT
2014/2015 ACADEMIC SESSION
College:
School:
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Course Code:
Course Title:
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Course Lecturer:
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Science and Technology
Environmental Sciences
Building Technology
B.Sc. Building Technology
BLD 515
Construction Budgeting and Finance
2.0 Units
Dr. O. I. Fagbenle
Alpha
Wednesday (10.00am -12.00noon).
Hall 202.
a) Brief Overview of the Course
The course, Construction Budgeting and Finance, is designed to enable student understand
the contemporary issues in business organization and other specialized topics in accounting
theory.
The course would also afford students the opportunity to know the rudiments of budgeting
and budgetary control and the application to construction works.
It would further afford the students to understand the working capital perspectives of
construction projects and case studies on profitability.
b) Course Objective/Goals
(i) To familiarize students with the various forms of business organization, their differences
and the similarities.
(ii) To enable students to understand the technicalities involved in accounting requirements.
(iii) To enable students grasp the construction knowledge of accounting theory and cost
accounting.
(iv) To enable students have in-depth knowledge of accounting and its control system,
budgeting and budgetary control system, etc.
(v) To enable students to understand the perspectives of working capital in construction
projects and profitability ratios.
c) Methods of Lecture Delivery/Teaching Aids
(i) Lecture delivery Methods
Dictation, division of students into study groups in the class for effective class
participation in problem solving.
(ii) Teaching Aids
Internet facilities, Lecture Notes, On-site clips of materials Incorporation on site,
catalogues of various materials, Marker/Magnetic Board system and Projector
system.
d) Course Outlines
Modules 1: Forms of Business Organisation.
(i) Identification/Definitions of the various forms of business organization, such as sole
proprietors, partnership, limited liability company, corporations, etc .
(ii) Characteristics, advantages, disadvantages and limitations of the various forms of business
organisation.
Module 2: Business Plan Outline.
(i) Introduction, marketing, financial management and operation of an ideal business.
(ii) Raising capital for an ideal business.
(iii) Writing a loan proposal: general information, business description, management profile,
market information, financial information, etc.
Module 3: Accounting Theory
(i) Definition and need for accounting, origin of book keeping, meaning and definition of
book keeping, scope of book keeping, objectives book keeping, advantages and disadvantages
of book keeping, system of book keeping .
(ii) Differences between book keeping and accounting, branches of accounting, accounting
concepts and conventions, definition of accounting principles, accounting concepts, bases of
accounting.
(i) Accounting equation, role of accountant in society, relationships with accounting with
other disciplines.
Module 4: Investment Procedures/Appraisal
(i) Nature of investment and procedures of an investment.
(ii) Identification, evaluation, authorization, monitoring and control of projects.
(iii) Financing decisions, characteristics of capital investments, roles of finance managers, etc.
(iv) Investment appraisal, factors to be considered under investment appraisal, extended yield
method, Net Present Value, etc.
Modules 5: Budgeting and Control Systems
(i) Definitions/Overview of budgeting, purpose and concept of budgeting, budgeting review
process, features of budgeting.
(ii) Capital budgeting, capital budgeting appraisal methods
(iii) Definition/overview of capital rationing, types of capital rationing, assumptions and
limitations of capital rationing.
e) Tutorials
Tutorials comprise of questions drawn at random from each Module after the completion of
each of the Modules.
f) Structure of the Programme/Method of Grading
 Continuous Assessment
Test 115 marks
Test 215 marks
Total =
30 Marks
 Examination
Exams – 70 Marks
Sum Total - 100 Marks
g) Ground Rules & Regulations
(i) Assignments are to be submitted as at when due while late submission attracts marks
deduction.
(ii) There is zero tolerance from lateness to lectures
(iii) Group assignment must be submitted in type form with pictorial information that are well
illustrated.
(iv) 75% attendance is required for students to quality for the semester examination in the
course.
h) Topics for Term papers/Assignments/Students Activities
(i) Forms of Business Organisation.
(ii) Characteristics, merits and demerits of business organization types.
(iii) Fund Sourcing in an ideal business.
(iv) Accounting Theory and Concepts.
(v) Meaning, definition and scope of book keeping.
(vi) Relationships of Accounting with other professions.
(vii) Budgeting and Control Systems in Construction.
(i) Working Capital and Profitability Case Studies.
i) Alignment with Covenant University Vision/Goals
The course aims at disseminating accounting research outputs in relation to complex
contemporary building production which is in line with Covenant University’s goals of
imparting sound scientific knowledge.
It would also boost the students’ capacity development in the area of budgeting and
budgetary control systems, the working capital perspectives, profitability studies, etc.
j) Contemporary Issues/Industry Relevance
The course would enable students to have thorough knowledge of construction budgeting
and their interrelationships, which could guide in their study of effective project delivery.
It would also afford student the opportunity of knowing the purpose of accounting,
budgeting control systems and the working capital aspects of construction.
k) Recommended Reading/Texts
(i)