:AACE CERTIFICATION 2009-2010:

Just find not an easy to start on paper framework/or structure. I just start to compose my paper body and slowing down when reach structuring the flow on the content. So I think I need to concept the frame/structure of my paper body OR probably flow of logic on why, what, and how.

My previous title was “Project management earns value observing from Syariah law.

To start my observation on syariah and align it with the EV theory, I start my reading trough any article which related to syariah financing. My though said at that time; I can start the introduction of paper body by “WHY” I am interesting to PM-EV and syariah. Then found that I would say is that because the rapid growth of syariah financing bank in the last decade to fund a major capital project; and then even non-Islamic country like UK, china, even US start to build their Syariah finance infrastructure. Hmmm,..It could be a good start for my “WHY”.

Then I start to think the body of my paper resources (the WHAT and HOW). After reading several articles I thought that I should not further emerged into financial syariah and its finance’s structures. But I just need to absorb the basic/spirit OR paradigm on how differentiating syariah and conventional financing; which I end up to area set of syariah’s prohibitions (1):
1. Transaction in un-ethical goods and services
2. Earning return from a loan contract (Riba/Interest/Usury)
3. Compensation based restructuring of debts;
4. Excessive uncertainty in contracts (Gharar)
5. Gambling and change-based games (Qimar)
6. Trading in debt contracts at discount, and;
7. Forward foreign exchanges transaction.

To start my observation on how to align this with PM-EV; then I come out with email to mentor a couple month ago (Nov 27, 2009) asking on what the different between PM-EV with conventional PM. the answer that PM-EV the different to conventional PM is only capability to have “real-time” measurement so it could give us “early warning” on how healthy our project is.

To close the loop, I am focusing on the important of PROMPT payment seeing from syariah. By ability of EV to measure the “EARN” then there is no reason to delay on payment. Once, because the obligation has delivered then is ask by syariah to prompt payment the work “before the sweat is drying off”. Also, in addition, prompt payment will prevent factoring invoice practice.

So my paper final paper tittle will be more narrowing to “PROJECT MANAGEMENT: EARN VALUE AND PROMPT PAYMENT PRACTICES OBSERVED FROM VIEW OF ISLAMIC SYARIAH LAW.
The framing will be; start by introduction on WHY I choose this topic; which I would start on boom of syariah funding in the prject funding. Then continue with introduction to syariah financing and its instrument (e.g. sukuk).
Then I will continue the WHAT by start discussion on syariah prohibiting; and then start the HOW by the reason base on my personal observation, the compatible of EV to syariah compliment project management; and use the prompt payment as a case of dicussion.
Finally close with hypothesis (at the conclusion) that is an opportunity to be fully syariah comply IF any project funded by syariah instrument also run the execution by PM EV.

I hope above frame logically OK, and acceptable for 2500 paper. Please comment then I will continue to build the 1st draft.

B.R, Farid

PS: I probably slow in progressing my paper since I only could work on it in Sat and Sun every week, share with my family time since in the other day I will be full time (even more) to my new job;...adapting to new system.

Cited (1) (4). “Managing financial risks of sukuk structure”, A dissertation of Master of Science, Ali Arsalan Tariq, Loughborough University, UK.