This is an attractive facilitator on financial fundamentals for engineers working on, or in relation to projects. To reflect its resourceful contents, he book title should have been: Projects engineering finances. the book is very friendly to the new generation of clueless engineers on the backbone of project engineering, and contracting industry.
It's all about money, is the authors excuse for writing this book which is a vivid technology transfer and upgrade of economic engineering, about the contracting industry. a brief history of money follows on inflation, interest rates, and banking. If you don't know how or why to measure money, you are introduced to financial accounts, assets, and provisions. With a couple of warnings on company liability, management and shareholders.
Capital, yearly business plan, working capital, and cash flow are concisely explored in chapters 6 to 9. Following chapters 10 - 16 deal with contracts, their conditions, cost centers, contact pricing, and tendering with two milestone warnings on 'How things can go wrong 2 & 3. Two case studies of a gas-fired power plant, and expert witness who relates contract specifications to performance guarantees.
Going in depth on contract types, terms of payment, and warning 4 on not adhering to good contractual practices, Contract execution, Procurement and monitoring follow up, with a nice contract cash flow/ time curve. chapter 22 and beyond cover getting paid strategy, consultants, optimization, OSHA, Green engineering, R&D, Engineering, money, and ethics. Three appendices on financial accounts, CPM analysis, and project cash flow analysis.
Compared with Peters/ Timmerhaus' "Plant Design and Economics for Chemical Engineers, 5th edition, the popular standard text's strong feature on economic analysis, and cost estimation, it is hard to preach having gain without pain. Another Chemical Engineering handbook by Towler and Sinnott covering the economics of plant and process design, including capital cost estimating, revenues and production costs, and profits is also very competitive.