Step By Step Guide To Build A Hotel

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 139 Hotel Construction and Project Management Hotel Construction Construction represents the physical manifestation of all the hard work which has occurred in planning and organizing the development project. The construction process is a complex one which can be affected by a variety of factors affecting handover, such as quality, budget and operational capability. This process must, therefore, be carefully managed and understood to avoid potential problems. Hotel Construction Process is outlined below: • Selecting General Contractor • Selecting Sub Contractors • Obtaining Construction Bids • Construction Contract Agreement • The Construction Schedule • Progress Payments • Contractor Insurance • Final Payment and Handover In general, the building contractor’s organization must generally be divided between office and site activities. Offices will often be concerned with estimating/tendering, site planning, construction process and planning, quantity surveying, cost control and bulk purchasing of materials and hire of plant. The work on site will be under the control of a contracts or construction manager/director, who may coordinate many other projects on different sites. The resident or direct contact on a particular site will be the site or project manager, who will be responsible for the building contractor’s own employees and subcontractors. Most medium- to large-sized building contractors also provide for both the design and construction of a building project. This combines the services of the design team with those of general contracting. In effect the building contractor provides a ‘package deal’ in which he is responsible for all the major decisions on design and technical matters, prepares plans and specifications, obtains approvals and carries out the construction. The building contractor most often employs independent design practices for a fee, also ‘contractor’ design subcontractors, together with

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 140 building control and planning specialists. The role of the design manager or design and build manager has become more prominent in this type of project and more often it is this individual who now provides the main or single point of contact, both technically and commercially, with the client and appointed agents. Selecting a General Contractor • Check References from previous Clients: whether the contractor finished on time, stayed on budget and adhered to the construction contract. • Is he/she a member of the relevant association or institute or do they have the required license to perform the task? • How many years have they been in the business? • Is a physical inspection of their business premises and previous work possible and do they have references from previous clients? • Find out what the legal requirements are in your state or country (especially important for the owner-builder), and ask for original proof of all risks insurance cover, 3rd party liability, worker's compensation, insurance for subcontractors, license bonds etc. and verify their validity with the issuing organization. The Contract Your General Contractor Agreement can best protect your interests if you tailor it to your unique requirements. If however, the contractor insists on supplying the construction agreement, it does not mean you have to accept it in its entirety. Many clauses can be negotiated, deleted or altered. Strike any clauses that are not in your best interests. Clauses that you may wish to add should be in the form of an addendum to the document. If you are not comfortable with the language, meaning or possible interpretations of any part of the contractor agreement, have it reviewed by a lawyer. Examples of clauses to delete: "The owner agrees to pay any increases in labor or material costs which may come into effect after signature of the agreement" "Should any of the specified materials not be available for any reason the general contractor reserves the right to substitute with similar materials?" Your general contractor agreement must cover: The scope of work (which will be detailed in final drawings and specifications) and which will form an integral part of the general contractor agreement. It

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 141 should also clearly state which part of the work is not covered by the general contractor e.g. they might fit window frames, but will not be responsible for the glazing. Any variation orders which may occur during the project term, not covered in the initial scope of work. The payment schedule and whether monies are paid by the owner or by a finance institution on his behalf. The dates for commencement and completion. Details of all insurance by all parties. Warranty on materials and workmanship. Ownership of materials. Security. Mediation, arbitration and jurisdiction. Having disputes decided by arbitration is much more cost effective than going to court. The general contractor agreement provided here makes provision for arbitration as well as the right to go to court. Discuss the matter beforehand and reach a mutual agreement on which course of action will be followed. Construction Bids The construction bids supplied by contractors will assist you in making your final choice of contractor. Draw up a detailed list of work to be done and give this to your pre-qualified general contractors or sub-contractors to price. Specify the materials to be used and include brand names and model numbers if applicable - this way you can compare bids on an equal basis. If you intend supplying some of the items yourself, be sure to list them under a heading: Items not required. It just always seems to not alter the price by much when deleting items, as opposed to when adding items. Construction Cost Estimation can assist you to determine to a large extent whether you'll be able to afford the building according to your drawings. It can

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 142 also provide you with a benchmark against which you can evaluate your construction bids. Ask for a detailed breakdown of costs and have a close look if the construction bids include an allowance for the contractor for items not yet selected. Ask the contractor to clarify and detail these items. Although some negotiation is acceptable and expected, you should allow the contractor his profits. A good way to do this may be to negotiate price and then offer a performance bonus up to the original quote if the work is performed ahead of construction schedule and to specification. Although budget always plays a role, the cheapest bidder may not be the most cost-effective in the long run. Ask them to detail the required deposits and how the progress payments will be scheduled. Ask how many workers are employed by the general contractor and how many projects they are currently working on. They may boast about the number of projects, which may well be a warning signal. They may commit to your job, start the project, only to disappear for a period due to over commitment. You are then reluctant to start the process all over, but if you plan for this contingency with a penalty clause in your general Contractor Agreement, they may be wary and not make promises they can't keep. Have your General Contractor Agreement ready before you accept the construction bids and award any projects. The Construction Programme A well-prepared programme is essential to every construction project. Many activities have to be carefully defined and given a time scale, and it is necessary not only to marshal and list the information but also to display it visually in terms of the contract’s objectives and the calendar. The working sequences and the relationships between individual activities must be clearly conveyed in this visual presentation. Programmes must provide the information necessary for management to carry out its functions in: • Establishing the suitable timing of information requirements • Forecasting and monitoring cash flow • Forecasting labour and staff requirements • Scheduling material supplies • Coordinating the activities of subcontractors and statutory undertakers

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 143 • Measuring and controlling performance • Assessing the effect of variations and change • Reviewing assumptions • Costing (and bonusing or performance-related pay). Guest Room and Bathroom Responsibility Matrix Abbreviations Owner O Franchisor F Project Manager PM Architect A Interior Designer I Kitchen Consultant K Laundry Consultant L Graphics Consultant G Audio Visual AV Acoustical AC Purchasing Agent PA General Contractor C Landscaping L Mechanical Electrical Lighting Consultant MEL

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 144 No Item Cost Estimate Design Planning Document Procure Install Guest Rooms 1 Artwork 2 Ceilings 3 Doors 4 Drapery 5 Electrical C A/L A/L C C 6 Floor 7 Furniture 8 Graphics 9 Life Safety Communication System 10 Lighting 11 Linen 12 Mechanical 13 Smoke Detector 14 Smoke Detector 15 Telephones 16 Television 17 Wall Coverings Bathrooms 1 Bath Linen 2 Ceiling 3 Electrical 4 Exhaust 5 Flooring 6 Lighting 7 Mechanical 8 Mirrors 9 Shower Curtain 10 Shower Head 11 Vanity Millwork 12 Wall Coverings

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 145 Construction Schedule The construction schedule will establish a start date, a project duration period with important milestones and a completion date which must be attached to or included in the contractor agreement. This will form the basis for progress payments as well as penalties to the contractor. This document should be as detailed as possible. Should the client be supplying any materials, the quantities and timing should be clearly indicated on the program. Failure to supply on time will result in delays, extending the program duration and therefore incurring additional costs by the contractor, which he may add to the owners account. Any delays to the program caused by extreme weather can not be charged for by the contractor, but neither can he be penalized for being late. Get a written agreement for Contract Extension, signed by both parties, to avoid disputes. Delay to the program caused by circumstances beyond the control of the contractor (such as when the owner fails to supply material on time) may be charged for by the contractor and the cost of their standing time must be negotiated prior to commencement of the work. Delay to the schedule caused by the contractor would normally result in penalties to them i.e. a reduction in price. This can be calculated at a percentage per day or per week and must be negotiated before the start of the contract and specified in your general contractor agreement. When drawing up the construction schedule, the following must be clearly established: • Working days and public holidays. • Daily hours of work and overtime. • Builder's holidays during the Christmas period. • Minimum number of workmen on site. • Remuneration periods i.e. weekly, fortnightly or monthly. • Minimum qualifications of the Supervisory Staff on Site.

Step By Step Guide To Build A Hotel Sample Hotel Project and Construction Schedule Chart:

Step By Step Guide To Build A Hotel 146

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 147 Subcontract procurement Schedule This schedule gives the site team a programme with which to place subcontract orders, providing a control framework for design information production in accordance with the construction programme. The building contractor will determine how the construction activities will be divided into subcontractor trade packages. The ‘start-on-site date’ will be taken from the construction programme with the ‘subcontractor lead-in (weeks)’ period allowing for all lead-in time requirements including: • Drawings and approval • Manufacture • Delivery periods • Integration with other trades. On design and build contracts the ‘lead-in’ time needs special consideration, with particular consideration being given to the overall design. The ‘latest enquiry date’ is derived from subcontracting the lead-in and ‘tender period’, in weeks, from the ‘start-on-site date’. This ‘latest enquiry date’, being the date information is required from the design team. Material purchasing The preparation of ‘material schedules’ is similar in principle to that of preparing the ‘subcontractor procurement schedule’. However, with more and more subcontractors now providing a complete service (providing labour, plant and materials) the volume of material purchasing by the building contractor has somewhat diminished. Those subcontract trades who, in the main, provide only labour and plant, not materials, are usually limited to the following: • Ground workers • Bricklayers • Carpentry and joinery. Although joinery, especially in building hotels, is now subcontracted to specialized labour, plant and material subcontract joiners, or ‘fitting-out’ subcontractors. Again, this schedule gives the site team a programme with which to place orders (this time purchase orders) providing a control framework for design information

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 148 production, especially written specifications of materials, in accordance with the construction programme. The ‘required on-site date’ will effectively be the ‘start-on-site date’, taken from the construction programme, with the ‘delivery period (weeks)’ being the period in which the supplier needs to procure and deliver the materials from stock or from works. The ‘latest requisition date’ is a reminder for the site team to compile their ‘materials indent’ or ‘material requisition’ detailing what materials and quantity they require. The site team will use the ‘materials schedule’ to establish priorities for the provision of these indents with due consideration to extended delivery periods and pending increased cost dates. Plant and plant hire As with material purchasing, the volume of purchasing and/or hiring plant has diminished, with more and more subcontractors providing a service which includes labour and plant. The site and/or project manager and quantity surveyor will examine all plant and transport requirements for the project and establish whether a case can be made for purchasing rather than hiring, taking into account the services normally provided by plant hirers (for example servicing and maintenance) and submit this case as a course of action to the contracts manager/director or plant manager for a decision – similarly for plant which cannot be hired. The site team will initiate the hire of mechanical and non mechanical plant for their project via a ‘plant hire order,’ with the conditions of hire of mechanical plant being very different to that of non-mechanical plant. All plant on-site is scheduled, with details including the type of plant, owner, number and to whom it was issued being recorded, and reconciled weekly, against the tender/budget allocation. With the exception of tower cranes, on most large, or even mediumsized building projects, the only plant a building contractor would use, would be associated with the site set-up and the preliminaries element of the project, such as generators for lighting and power, road sweepers and small tools. Site Preparation Prior to commencement, the following must be established: Site access, workers' parking and extent of the site. Ablutions and or canteen facilities for the remodeling or building contractor and his workers.

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 149 Local regulations often prohibit or limit how many personnel can live on the site. The physical location of incoming material stockpiles and rubbish piles. The position of telephone lines, power lines, water and sewage pipes, drains etc. must be put in writing (in your free contractor agreement) and the responsibility for any of these during construction must be clearly assigned. The contractor is responsible for clearing the site prior to completion. Progress review Progress reviews are applied pre-contract, as a ‘start-up’ meeting, during the contract, as monthly or fortnightly progress meetings, and post-contract, as an ‘end-of-contract de-brief’ meeting. The following addresses progress meetings held during the contract. These meetings ensure that cost, progress and quality are reviewed at regular intervals (usually monthly and sometimes fortnightly) and that reports and monitors are produced by the site team for review by senior management. Typical contract review meeting agenda 1 Programme and progress • Site manager’s report • Marked-up programme 2 Information requirements • Drawing and information required schedule • Drawing and bending schedule registers • RFI (request for information) index 3 Variations • CVI (confirmation of verbal instruction) index • Contract instructions (received from the client) index • Day works 4 Procurement and hire • Subcontractors procurement schedule • Materials schedule • Plant

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 150 5 Performance/problems • Subcontractors • Suppliers • Direct labour 6 Health and safety • Accidents • Audit Report(s) and non-conformity level • Health & Safety Executive visits • Problems 7 Environmental • Incidents • Risk assessment compliance/non-conformity level • Problems 8 Quality/tidiness • Inspection and test record • NCR (non-conformance report) registers • CAR (corrective action report) registers • Audit report(s) 9 Temporary works • Temporary works register • Works complete/pending 10 Client Relationship and Future Opportunities 11 Site administration and management systems 12 Finance • Financial report • CVR (cost, value, reconciliation) • Forecast • Payments 13 Any other business This thorough review will allow both the site team and senior management to assess planning and progress in all aspects of the project, time, quality and cost, together with actual and/or possible delays. Recovery plans where necessary can be discussed and approved quickly, detailing the effects of any decisions made or actions taken.

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 151 The contract review is a powerful tool, allowing the site team to report on project specific issues, with the senior management team being able to make decisions and take actions on a company wide basis. Contract Extension You may need a contract extension agreement because almost every building or remodeling project will take longer than anticipated. The contractor and owner should firstly be realistic when drawing up the construction schedule. They should agree on an allowance for bad weather days and specify that in the schedule. For the contractor it will be especially important to get any extension in writing, lest he be held liable for penalties. The free contractor agreement makes provision for deadline extension if done so in writing and signed by the owner. The contract extension form can be adapted to cover agreements between contractor and subcontractor or employer and independent contractor. Progress Payments You can stay within your budget if you manage your progress payments to your contractor carefully and it will ensure the building schedule and building quality is to your satisfaction. Substantial upfront payments should never be made. At most, upfront payments must be limited to the value of the materials delivered to the work site. Construction payments can be made at pre-determined stages but should only cover materials and work supplied, to the extent that neither the developer nor contractor is at a big disadvantage. Payments should be made in accordance with the bill of quantities and the construction schedule so that both parties are clear as to what has or has not been paid for. Retention monies should be withheld and can be from 5% to 20% of the contract value - held from 3 months to 1 year, dependent on the type of works. Get receipts or an unconditional waiver and lien release (that indicate the contractor, sub-contractors and suppliers have been paid for work and materials) at every progress payment and prior to the final payment. This is very important and protects you against any mechanic's liens or other claims being filed against

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 152 the property which may result in your having to pay twice. Check with your local authorities on the applicable laws. If progress payments are for a major phase of the work it should not be paid until the work has passed all inspections needed e.g. prior to pouring concrete foundations, the applicable building department has to do an inspection and signing off. By the same token your final payment should only be made after you received a final approval or clearance document from the relevant governmental building department. Any operating manuals or maintenance instructions should be handed to you prior to final payment. Final payment must be withheld until all items on your Punch List /Snag list have been addressed. Agree on a reasonable time with the contractor for this to be carried out so as to avoid frustration and disputes. Most importantly: Get all final lien waivers and a signed copy of the final invoice stating that the contract has been paid in full. The contractor agreement stipulates the manner in which progress payments will be made. Contractor Insurance Before awarding a project to a contractor, the developer must verify that the contractor is adequately insured. The contractor must supply proof that he is current with Workman's Compensation - which covers injuries to the contractor and employees whilst working on your project - as well as General / Personal liability which insures your property. Site security is normally the responsibility of the contractor, but it again depends on the Contract agreement if it’s the responsibility of the developer or the Contractor.

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 153 Hotel Construction checklist Construction permit Construction budget control Contract award procedure Building costs allocation plan Description of performance of duty or architects Design and construction punch list Design review list Detail design with architect Detailed cost as per tender verses budget Ff & E listing Handover date/handover procedure Presentation of interior designs to owner(s) Presentation of preliminary Project with cost estimate Project plan for building project Punch listing Space allocation plan Contracts / Agreements During Hotel Development Letter of intent Application Feasibility and design study Pre-opening services Operational technical assistance Management Rent/lease Franchise License Consulting Joint venture Partnership Agency Ground lease Subtenants General contractor

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 154 Architects Structural engineer Interior surveyor Quantity surveyor Heat, light, power, sanitary engineers Food facility planning Technical assistance Planning assistance Geologist Specialists Construction manager Site supervision manager Project manager Owning company Operating company Project coordinator Others

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 155 Sample Independent contractor agreement This Agreement is entered into as of the ________ day of ________________, 20____, between ("Company") and ____________________ ("the Contractor"). 1. Independent Contractor. Subject to the terms and conditions of this Agreement, the Company hereby engages the Contractor as an independent contractor to perform the services set forth herein, and the Contractor hereby accepts such engagement. 2. Duties, Term, and Compensation. The Contractor’s duties, term of engagement, compensation and provisions for payment thereof shall be as set forth in the estimate previously provided to the Company by the Contractor and which is attached as Exhibit A, which may be amended in writing from time to time, or supplemented with subsequent estimates for services to be rendered by the Contractor and agreed to by the Company, and which collectively are hereby incorporated by reference. 3. Expenses. During the term of this Agreement, the Contractor shall bill and the Company shall reimburse [him or her] for all reasonable and approved out-ofpocket expenses which are incurred in connection with the performance of the duties hereunder. Notwithstanding the foregoing, expenses for the time spent by Contractor in traveling to and from Company facilities shall not be reimbursable. 4. Written Reports. The Company may request that project plans, progress reports and a final results report be provided by Contractor on a monthly basis. A final results report shall be due at the conclusion of the project and shall be submitted to the Company in a confidential written report at such time. The results report shall be in such form and setting forth such information and data as is reasonably requested by the Company. 5. Inventions. Any and all inventions, discoveries, developments and innovations conceived by the Contractor during this engagement relative to the duties under this Agreement shall be the exclusive property of the Company; and the Contractor hereby assigns all right, title, and interest in the same to the Company. Any and all inventions, discoveries, developments and innovations conceived by the Contractor prior to the term of this Agreement and utilized by [him or her] in rendering duties to the Company are hereby licensed to the Company for use in its operations and for an infinite duration. This license is non-exclusive, and may be assigned without the Contractor’s prior written approval by the Company to a wholly-owned subsidiary of the Company.

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 156 6. Confidentiality. The Contractor acknowledges that during the engagement [he or she] will have access to and become acquainted with various trade secrets, inventions, innovations, processes, information, records and specifications owned or licensed by the Company and/or used by the Company in connection with the operation of its business including, without limitation, the Company’s business and product processes, methods, customer lists, accounts and procedures. The Contractor agrees that [he or she] will not disclose any of the aforesaid, directly or indirectly, or use any of them in any manner, either during the term of this Agreement or at any time thereafter, except as required in the course of this engagement with the Company. All files, records, documents, blueprints, specifications, information, letters, notes, media lists, original artwork/creative, notebooks, and similar items relating to the business of the Company, whether prepared by the Contractor or otherwise coming into [his or her] possession, shall remain the exclusive property of the Company. The Contractor shall not retain any copies of the foregoing without the Company’s prior written permission. Upon the expiration or earlier termination of this Agreement, or whenever requested by the Company, the Contractor shall immediately deliver to the Company all such files, records, documents, specifications, information, and other items in [his or her] possession or under [his or her] control. The Contractor further agrees that [he or she] will not disclose [his or her] retention as an independent contractor or the terms of this Agreement to any person without the prior written consent of the Company and shall at all times preserve the confidential nature of [his or her] relationship to the Company and of the services hereunder. 7. Conflicts of Interest; Non-hire Provision. The Contractor represents that [he or she] is free to enter into this Agreement and that this engagement does not violate the terms of any agreement between the Contractor and any third party. Further, the Contractor, in rendering [his or her] duties shall not utilize any invention, discovery, development, improvement, innovation, or trade secret in which [he or she] does not have a proprietary interest. During the term of this agreement, the Contractor shall devote as much of [his or her] productive time, energy and abilities to the performance of [his or her] duties hereunder as is necessary to perform the required duties in a timely and productive manner. The Contractor is expressly free to perform services for other parties while performing services for the Company. For a period of six months following any termination, the Contractor shall not, directly or indirectly hire, solicit, or encourage to leave the Company’s employment, any employee, consultant, or contractor of the Company or hire any such employee, consultant, or contractor who has left the Company’s employment or contractual engagement within one year of such employment or engagement. 8. Right to Injunction. The parties hereto acknowledge that the services to be

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 157 rendered by the Contractor under this Agreement and the rights and privileges granted to the Company under the Agreement are of a special, unique, unusual, and extraordinary character which gives them a peculiar value, the loss of which cannot be reasonably or adequately compensated by damages in any action at law, and the breach by the Contractor of any of the provisions of this Agreement will cause the Company irreparable injury and damage. The Contractor expressly agrees that the Company shall be entitled to injunctive and other equitable relief in the event of, or to prevent, a breach of any provision of this Agreement by the Contractor. Resort to such equitable relief, however, shall not be construed to be a waiver of any other rights or remedies that the Company may have for damages or otherwise. The various rights and remedies of the Company under this Agreement or otherwise shall be construed to be cumulative, and no one of them shall be exclusive of any other or of any right or remedy allowed by law. 9. Merger. This Agreement shall not be terminated by the merger or consolidation of the Company into or with any other entity. 10. Termination. The Company may terminate this Agreement at any time by 10 working days’ written notice to the Contractor. In addition, if the Contractor is convicted of any crime or offense, fails or refuses to comply with the written policies or reasonable directive of the Company, is guilty of serious misconduct in connection with performance hereunder, or materially breaches provisions of this Agreement, the Company at any time may terminate the engagement of the Contractor immediately and without prior written notice to the Contractor. 11. Independent Contractor. This Agreement shall not render the Contractor an employee, partner, agent of, or joint venture with the Company for any purpose. The Contractor is and will remain an independent contractor in [his or her] relationship to the Company. The Company shall not be responsible for withholding taxes with respect to the Contractor’s compensation hereunder. The Contractor shall have no claim against the Company hereunder or otherwise for vacation pay, sick leave, retirement benefits, social security, worker’s compensation, health or disability benefits, unemployment insurance benefits, or employee benefits of any kind. 12. Insurance. The Contractor will carry liability insurance (including malpractice insurance, if warranted) relative to any service that [he or she] performs for the Company. 13. Successors and Assigns. All of the provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, if any, successors, and assigns. 14. Choice of Law. The laws of the state of XYZ shall govern the validity of this

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 158 Agreement, the construction of its terms and the interpretation of the rights and duties of the parties hereto. 15. Arbitration. Any controversies arising out of the terms of this Agreement or its interpretation shall be settled in [____________________] in accordance with the rules of the XYZ Arbitration Association, and the judgment upon award may be entered in any court having jurisdiction thereof. 16. Headings. Section headings are not to be considered a part of this Agreement and are not intended to be a full and accurate description of the contents hereof. 17. Waiver. Waiver by one party hereto of breach of any provision of this Agreement by the other shall not operate or be construed as a continuing waiver. 18. Assignment. The Contractor shall not assign any of [his or her] rights under this Agreement, or delegate the performance of any of [his or her] duties hereunder, without the prior written consent of the Company. 19. Notices. Any and all notices, demands, or other communications required or desired to be given hereunder by any party shall be in writing and shall be validly given or made to another party if personally served, or if deposited in the United States mail, certified or registered, postage prepaid, return receipt requested. If such notice or demand is served personally, notice shall be deemed constructively made at the time of such personal service. If such notice, demand or other communication is given by mail, such notice shall be conclusively deemed given five days after deposit thereof in the United States mail addressed to the party to whom such notice, demand or other communication is to be given as follows: If to the Contractor: [name] [street address] [city, state, zip] If to the Company: Any party hereto may change its address for purposes of this paragraph by written notice given in the manner provided above. 20. Modification or Amendment. No amendment, change or modification of this Agreement shall be valid unless in writing signed by the parties hereto. 21. Entire Understanding. This document and any exhibit attached constitute the entire understanding and agreement of the parties, and any and all prior agreements, understandings, and representations are hereby terminated and canceled in their entirety and are of no further force and effect.

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 159 22. Unenforceability of Provisions. If any provision of this Agreement, or any portion thereof, is held to be invalid and unenforceable, then the remainder of this Agreement shall nevertheless remain in full force and effect. IN WITNESS WHEREOF the undersigned have executed this Agreement as of the day and year first written above. The parties hereto agree that facsimile signatures shall be as effective as if originals. By: ____________________ its: ____________________ [title or position] [Contractor’s name] By: ____________________ its: ____________________ [title or position] Duties, term, and compensation DUTIES: The Contractor will [describe here the work or service to be performed]. [He or she] will report directly to [name] and to any other party designated by [name] in connection with the performance of the duties under this Agreement and shall fulfill any other duties reasonably requested by the Company and agreed to by the Contractor. TERM: This engagement shall commence upon execution of this Agreement and shall continue in full force and effect through [date] or earlier upon completion of the Contractor’s duties under this Agreement. The Agreement may only be extended thereafter by mutual agreement, unless terminated earlier by operation of and in accordance with this Agreement. COMPENSATION: (Choose A or B) A. As full compensation for the services rendered pursuant to this Agreement, the Company shall pay the Contractor at the hourly rate of [dollar amount] per hour, with total payment not to exceed [dollar amount] without prior written approval by an authorized representative of the Company. Such compensation shall be payable within 30 days of receipt of Contractor’s monthly invoice for services rendered supported by reasonable documentation. B. As full compensation for the services rendered pursuant to this Agreement, the Company shall pay the Contractor the sum of ____________________ [dollar amount], to be paid _____________________________________ [time and conditions of payment.]

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 160 Letter of Intent A “letter of intent” is a written preliminary contractual document that authorizes subcontractor’s to begin work. It is customarily employed to reduce to writing a preliminary understanding of parties who intend to enter into contract. It gives the owner authority to proceed prior to the execution of a more formal contractual document between both parties. In some cases, both Contractor and the client or Contractor and it’s subcontractors, have completed or nearly completed contract negotiations and are awaiting internal reviews and approvals. Occasionally a situation emerges rapidly which requires immediate action. It may be more appropriate to define a specific limited scope of work and issue a purchase order to cover the limited requirements, pending the negotiation of a complete scope of work with complete funding. Letters of intent should be limited in duration and total financial obligation. Letters of intent must lead to a fully defined contract or be subject to a negotiated settlement agreement due to the parties not reaching agreement on the continued progress of the work. A letter of intent should be as complete and definite as possible. This may include the general provisions for the contract type. It should definitely include a funding limitation or ceiling not to exceed price as well as a description of a mini scope of work/schedule. Letters of intent should be terminated and negotiated into a fully executed agreement as soon as possible. Since a letter of intent does not include all of the standard terms and conditions and may not allow for payment for expenditures, it is in the best interest of all parties to finalize a negotiated agreement soon after it is issued.

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 161 Hotel Project Management Project Execution Checklist Project Name: Revision Date: Project Number: Team Leader: Project Location: Construction Mobilize Field Construction Establish Site Office Make Arrangements for Temporary Power Make Arrangements for Toilet Facilities Establish Construction Lay-down Area Site Security Secure Vehicle Passes Contractors Alignment on Objectives Setup site supervision meeting schedule & format Conduct and report on site meetings with: Site supervisors Owner Safety Orientation Change Management Procedure Estimate to be updated as Changes are authorized Clean Design Checklist - During Construction Contractor to Provide Detail Construction Schedule Construction Schedule Monitoring Field Control for Materials & Equipment Transportation coordination on Major Equipment/Systems Erection Planning Guide Start-up Planning & Procedure Start-up Assistance (Personnel) Document “Record” Changes on Drawings Safety Checklist - During Safety Monitoring Quality Control Measure progress and issue progress reports Maintenance Data Transmittal Checklist

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 162 Project Control List Listed below is a Hotel Project Control Checklist. Used during Hotel Development and Construction: ITEM REMARKS 1 Notice to Proceed 2 Received by Project Manager 3 Start Schedule Complete 4 All Bid Documents 5 Trade Payment Breakdown Complete 6 Insurance Certificates/Bonding 7 Pre-construction Conference (In-house) 8 Pre-construction Photos Taken 9 Excavation Permits Received 10 Excavation Started 11 Sheeting and Shoring Drawings (completed) 12 Pre-construction Conference (owner) 13 Scoping Schedule Completed 14 Progress Schedule Completed 15 Submittals/Materials Schedule Completed 16 Qty. Take-offs Completed - or form Estimating 17 Purchasing Schedule Completed 18 All Major Subcontracts Committed/Documented 19 Concrete Schedule Completed 20 Building Permits Received 21 Manpower Budgeting Schedule Complete

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 163 22 Form System Selected 23 Subcontractors Change Order Log 24 Form Designs Started 25 Form Sequence Plan 26 All Drawings., and equipment on project for Start 27 All Personnel Assigned 28 Notice to Subs. Via letter, Requesting Schedules 29 Final Chart of Accounts and Quantities 30 First Structural Concrete Placed 31 First Owner Invoice Submitted 32 Subcontractors Mechanical Schedule Received 33 Subcontractors Electrical Schedule Received 34 Sub. Curtain Wall Erection Schedule Received 35 Structural Steel Schedule Received 36 First "FSR" Received 37 All Scoping Completed 38 Change Order Log 39 Curtain Wall Plant Visit 40 First Project Status Report 41 Last Structural Concrete Placed 42 Curtain or Exterior Wall Completed 43 Roof Completed 44 Structure Weather-tight 45 Completion/Turnover Schedule Completed 46 Operation and Maintenance Manuals, Record Drawings Submitted 47 Contractor's Punch list Inspection Documented

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 164 48 Contractor's Punch list Work Started 49 Substantial Completion, Owner Acceptance 50 Retainage Reduced 51 All Change orders and Claims Submitted 52 Releases of lien sent to subcontractors 53 Punch list Work Complete 54 Record Drawings Completed 55 All Change Orders and Claims Settled 56 Refundable Deposits Received 57 Final Owner Invoice Submitted 58 Final Payment Received 59 Final Payments Made to Subs/Suppliers 60 All Official Papers, Formal Documents, Files, and Record Drawings Stored

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 165 Project Manual Purpose: To maintain a single bound document that includes the essential information for efficient management of production, communications, costs, physical resources, and finances for Hotel project success. Responsibility: Project Manager When Required: Initiate at the start of a project and maintain through completion of the project. Scope: See enclosures Enclosures The following describes the items, data, material, and information that are to be included in the Project Manual: Project Manager's Project Control List. Section 1 - Production Control 1) Schedule a) Updated Start Schedule, when applicable b) Updated Completion Schedule, when applicable c) Updated Delivery and Installation Schedules

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 166 Section 1 - Production Control (continued) 2) Meetings a) Copy of current and previous two Main Office Job Progress Meeting Minutes, with summary sheet on top. b) Copy of current plus previous two Job Progress Jobsite Subcontractor Meeting Minutes, when applicable. c) Any other current meeting notes and/or minutes that document or describe problems or situations which may require attention. 3) Procurement a) Updated copy of status of Subcontracts. Use date of occurrence rather than a check mark to indicate action completed. Section 2 - Cost Control 1) Labor cost information The summary of labor cost for the most recent and two previous pay periods. 2) Materials/Subcontracts Commitment Status The last month's Purchase Commitment Summary Report. 3) Equipment The current copy of the construction manager's equipment charge report. 4) Cost to complete the most recent project manager's projected cost to complete summary. Section 3 Financial Control: 1) Invoicing. A copy of the last invoice submitted to the owner. 2) Change order log. Copy of the current C/O Log 3) Construction Cost Code Summary. Current copy of the Construction Cost Code Summary Report. 4) Subcontractor Ledger Summary. Current copy of S/C Ledger Summary Report

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 167 Section 4 Contracts 1) Summary sheets. Summary of status of each subcontract amount and changes. 2) Subcontracts & Purchase Orders. Alphabetical insertion of P.M.’s copies of subcontracts, P.O.'s, and bonds. Each subcontract is to be preceded by the summary sheet. Section 5 Documentation: 1) Project Manager's Project Summary Sheet (Subcontract Status) (a) Purpose. To be used as a guide to determine that most major areas of responsibility are being addressed. (b) Responsibility. Project Manager (c) When Required. Initially and for project's duration (d) Scope. Lists significant items, activities and milestones from start through completion of a project. (e) Action required. (i) Review periodically (ii) List the date that each area of responsibility is completed. (iii) Get results and do not procrastinate. (f) Forms: Project Control List 2) Document control logs. 3) Requests and Changes Log 4) Contract and P.O. Log. 5) Submittals Log

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 168 Project Meetings Meetings are to coordinate the Hotel Development and Construction activities to assure efficient and orderly installation of each component. The following are some of the Meetings and their agenda: Pre-construction meeting agenda: • Execution of Owner-Contractor Agreement. • Submission of executed bonds and insurance certificates. • Distribution of Contract Documents. • Submission of lists of Subcontractors, Products, Schedule of Values, and Progress Schedule. • Designation of personnel representing the parties in Contract. • Procedures and processing of field decisions, submittals, substitutions, applications for payments, proposal request, Change Orders, and Contract closeout procedures. • Scheduling. Record minutes and distribute copies within one day after meeting faxed to participants, with one copy to Architect, Owner, participants, and those affected by decisions made. Progress meetings agenda: • Review minutes of previous meetings. • Review of Work progress. • Field observations, problems, and decisions. • Identification of problems which impede planned progress. • Review of submittals schedule and status of submittals.

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 169 • Review of off-site fabrication and delivery schedules. • Maintenance of progress schedule. • Corrective measures to regain projected schedules. • Planned progress during succeeding work period. • Coordination of projected progress. • Maintenance of quality and work standards. • Effect of proposed changes on progress schedule and coordination. • Other business relating to Work. Pre-installation meetings • When required in individual specification sections, convene a preinstallation meeting at work site prior to commencing work of the section. • Require attendance of parties directly affecting, or affected by, work of the specific section. • Notify Architect four days in advance of meeting date. • Prepare agenda and preside at meeting. • Review conditions of installation, preparation and installation procedures. • Review coordination with related work. Record minutes and distribute copies within one day after meeting faxed to participants, with one copy to Architect, Owner, participants, and those affected by decisions made. Coordination drawings: Prepare Coordination Drawings where close coordination is required for installation of products and materials fabricated off-site by separate entities, and where limited space necessitates maximum utilization of space for efficient installation of different components. Show relationship of components shown on separate Shop Drawings. Indicate required installation sequences.

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 170 Inspection of conditions: The installer of each component shall inspect the substrate and conditions under which work is performed. Do not proceed until unsatisfactory conditions have been corrected. Hotel Project Management checklist Owning/operating company pre-opening costs Capital cost, outline of cash flow projections Coordination construction management Construction cost Construction manager Construction schedule Construction budget control Construction punch list Construction standards Contractors list for bidding Contracts Design phases Differentiation check list Fees FF&E Financial analysis Financial projections Finishes, interior Furniture standards Garbage disposal system with local authorities Government regulations Incentives (zoning bonuses, tax abatements) Information processing Insurance for pre-opening period Lodging market analysis Marketing standards Market studies Materials Objections project management Operating permit Policy and procedures

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 171 Ordering mandatory operation manuals Organization chart for pre-opening phase Permits for illuminated and street signs Safety codes Security precautions to be discussed with local police Site investigation check list Specifications Working permits for expatriate staff Zoning regulations General construction Furniture - fixed millwork / movable Artwork and artifacts Interior signage, lettering and decoration concept Safety and security system Size and control of elevators TV/radio station reception per cable or aerial system Video monitoring system Telephones pabx Pms (computer and reservation system) Audiovisual system Other special systems

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 172 Project Files The Following are some of the Files maintained during Hotel Construction and Project Management: A) General Correspondence B) Owner Contract • Contract Summary • Insurance Certificates, Bonds • Roles & Responsibilities • Payment Requests • Incentives statusing C) Changes in Owner Contract D) Purchase Orders & Subcontracts • Insurance Certificates/Bonds • Payment Log E) Submittals in Process • Submittals Approved F) Requests for Information in Process • Requests for Information Finalized G) Engineering Correspondence • Design Agreement • Documents Status • Billings/Payment H) Vendor Files (reports, submittals, evaluations) 1) Mechanical a) OS Utilities b) Plumbing c) HVAC d) Fire Protection e) Piping f) Insulation g) Controls & Instrumentation h) Operations Manuals & Spare Parts Lists

Step By Step Guide To Build A Hotel Step By Step Guide To Build A Hotel 173 2) Electrical a) Utility Agreement b) Equipment & High Voltage Systems c) Lighting & Low Voltage Systems d) Process Equipment Hook-ups e) Manuals & Parts Lists I) Safety Plan - Meetings, Inspections, & Reports J) Quality Plan - Meetings, Inspections & Reports K) Progress Meetings, Reports L) Cost: • Labor reports • Equipment & Tool Reports (rentals & expendables) • PO (Materials)/Contract (Subcontractor) Status Reports • Field PO's • Freight & Drayage • Travel & Miscellaneous (shop visits, off-site meetings) • Craft worker Recruitment, Training & Incentives • Consultants (Labs, Form/Shoring Design, etc.) • Cost to Complete M) Control Estimate N) Schedule Information O) Permits, Authorities, Inspections P) Independent Lab Tests & Reports Q) Project Execution Plan R) Performance Criteria: Objectives/Evaluations

Step By Step Guide To Build A Hotel 1 Primary Responsibility 2 Secondary Responsibility Hotel Project Scheduling Control Sheet Responsibility 3 Information Only Priority 4 No Action Project Manager Construction Manager Team selection phase

Step By Step Guide To Build A Hotel 174 Site Engineer RESPONSIBILITY BARRIER CONTROL ACCEPTANCE Schedule activity OWNER ARCH ENG'R CM DATE DESCRIPTION DESCRIPTION OWNER ARCH ENG'R CM DATE Initiate Project Concept Select Architect/Engineer Who issues A&E contract? Establish Team Responsibilities

Step By Step Guide To Build A Hotel Establish Fee Structure Establish Communications Procedures Conceptual planning phase RESPONSIBILITY BARRIER CONTROL ACCEPTANCE ARCHARCH

Step By Step Guide To Build A Hotel 175 Schedule activity OWNER ARCH ENG'R CM DATE DESCRIPTION DESCRIPTION OWNER ARCH ENG'R CM DATE Refine User's Program Establish Overall Project Budget Develop Environmental Program & Conduct Environmental Study Conduct Site & Bldg. Evaluation Conduct Utilities Evaluation

Step By Step Guide To Build A Hotel Coordinate with Governmental Agencies Evaluate Financial Feasibility Prepare Master Schedule Develop Conceptual estimate Evaluate Budget vs. Estimate Perform Process Hazards Review

Step By Step Guide To Build A Hotel 176 Schematic design phase RESPONSIBILITY BARRIER CONTROL ACCEPTANCE Schedule activity OWNER ARCH ENG'R CM DATE DESCRIPTION DESCRIPTION OWNER ARCH ENG'R CM DATE Refine User's Program Prepare Detailed Design Schedule

Step By Step Guide To Build A Hotel Recommend Basic Materials & Systems Prepare Schematic Drawings Prepare Outline Specifications Retain Special Consultants Confirm Environmental Study Analyze Alternate Systems CdtCttbilitAli

Step By Step Guide To Build A Hotel 177 Conduct Constructability Analysis Conduct Quality Review Meeting Establish Reporting Procedures Develop Bid Package Format Identify Long Lead Items Preliminary Governmental Agency Review

Step By Step Guide To Build A Hotel Update Conceptual Estimate Analyze Budget vs. Conceptual Estimate Update Master Schedule Establish Required Building Standards Design development phase

Step By Step Guide To Build A Hotel 178 RESPONSIBILITY BARRIER CONTROL ACCEPTANCE Schedule activity OWNER ARCH ENG'R CM DATE DESCRIPTION DESCRIPTION OWNER ARCH ENG'R CM DATE Refine User's Program Confirm & Update Design Schedule Evaluate Architectural Systems Evaluate Structural Systems

Step By Step Guide To Build A Hotel Evaluate Mechanical/Electrical Systems Conclude Value Engineering Analysis Conclude Constructability Analysis Refine Outline Specifications Complete Design Development Drawings Prepare Preliminary Construction Estimate Prepare Preliminary Construction Schedule

Step By Step Guide To Build A Hotel 179 pyPrepare Bidder's List ---Obtain Approval from Sourcing Update Master Schedule Analyze Budget vs Estimate Refine Program Budget Prepare Long Lead Purchase Documents Prepare Financial Appropriation Papers

Step By Step Guide To Build A Hotel ---Obtain Project Financing Prepare required Bldg. Standards Prepare Required Site Standards Conclude Process Hazards Review Contract documents phase RESPONSIBILITY BARRIERCONTROLACCEPTANCE

Step By Step Guide To Build A Hotel 180 BARRIER CONTROL Schedule activity OWNER ARCH ENG'R CM DATE DESCRIPTION DESCRIPTION OWNER ARCH ENG'R CM DATE Update Design Schedule Establish onsite staffing Finalize Plans & Specifications Finalize Construction Estimate Finalize Project Budget