Educational Simulation in Construction Project Financial Risks Management

Abstract

Construction sector is vulnerable to economic changes, especially during recession periods due to the high capital outlays, cost flexibility and high competition limiting the price. The changes of the business environment, often associated with shortage of funds, exchange rate fluctuation and political instability increase the construction projects financial risks. In this context, the application of structured approaches related to the financial planning, scheduling and monitoring of the projects is even more important. In order to execute these processes, the project managers should have the necessary competences. The development of financial management competencies cannot be achieved into the classical educational settings, by using common methods of knowledge transfer. Instead, the project financial management should be taught in active and experiential ways, stimulating students to think creatively and to act properly as project managers. Education simulations are very valuable in this regards.The paper presents the experience gained in the master program of Project Management in Construction held in the Technical University of Civil Engineering Bucharest. Based on the main international project management competence standards and relevant educational experiences, the authors designed a simulation platform. The paper presents the architecture and functionality of this platform. A simulation scenario is presented as a case study.