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Hotel Project Procurement

SPHM Hospitality will assist you in handling Hotel Project Procurement.

It is important that the procurement company be involved with the professional team as soon as possible, enabling it to give valuable advice and input. By involving the procurement company from the initial stages, the following will be achieved:

 

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  • Purchase of all FF&E interior items (furniture, fittings and equipment).

  • Purchase of all OS&E items (operational start up equipment).

  • Compile and accurate, itemised budget for all FF&E and OS&E categories for the total project, according to the interior designers specification and the requirements from the operations team.

  • Communicate with the Client and the Project Manager regarding the budget status, to clarify any marginally defined areas, determine responsibilities and to avoid omissions or duplications of items.

  • To put out to tender all the items and to obtain costs on design approved alternatives in an attempt to reduce costs without compromising the design.

  • Continually update budgets so as to properly monitor the financial parameters as determined by the Client.
    To prepare all tender documents, approval documents and purchase orders as items are approved, including information such as vendor, description, unit price, etc.

  • Negotiation of payment of terms and guarantees.

  • Follow-up and expedite all orders.

  • Co-ordinate deliveries to ensure that the merchandise is delivered and received on time at a prearranged warehouse facility or at the site.

  • Secure freight pricing and oversee the movement of all merchandise.

  • Negotiate warehousing and installation service on behalf of the Client.

Procurement Process
 

(Phase 1) Kickoff and project brief


Step 1

 To start the process I send  following documents to the Client for initial discussions :

  • Area configuration questionnaire (for Client to complete).

  • OS& E Scope Document ( to be agreed with Client).

 

 Step 2

Client to send  following information  (if available)  such as:

  • Expected opening date.

  • Owner’s budget (if possible at this stage).

  • Hotel room layouts, design renderings and photos .

  • Location of hotel.

  • Local hotels in competition.

  • Standard of hotel.

  • Operator’s name and brand.

  • Operating policies eg F&B, bedding.

  • Examples of recent operators  OS&E lists .

  • Operator’s programs eg sleeping guide. 

  • Brand standards of operator.

  • Items to be rented.

  • Preferred/recommended suppliers list from operator.

 

(Phase 2) Establish scope

Agree scope of purchases.

  • Agree scope of work.

  • Agree milestones.

 

For Refurbishments

  • Audit OS&E in hotel.

  • Prepare report on condition of equipment.

  • Agree purchases with Client.

 

(Phase 3) Time, Standards, Lists & BOQs


Step 3 Time

  • Prepare a  plan with milestones ie schedule of time and tasks. 

 

Step 4  Scope and OS&E Masterlists.

  • Crosscheck OSE scope with other scope documents (if made available by Client before list finalised ) eg FF&E scope  (including kitchen laundry and IT) ,  GC eg bathroom fittings, electrical contract ,  to identify possible  double or nil counting eg room service trolleys, ice machines.

  • Review floor plans, layout, room matrix in terms of equipment needs..

  • Prepare a detailed preliminary OS&E Masterlists with quantities and generic specs .

  • Alternatively  review the Clients own OS&E lists in terms of scope, standards,suppliers,par coefficients, quantities  and ensure operators brand /supplier requirements are met.  I transfer the info to my OS&E Masterlist.

 

Step 5  Review

  • Review the  detailed OS&E Masterlist  with Client and hotel operations.  (through skype)

 

Step 6  BOQs

  • I  prepare the bills of quantities (BOQ).

 

Step 7 Suppliers

  • Agree the shortlist of suppliers(normally already pre qualified) with Client and operator.

  • Suggest potential cost savings using alternative suppliers.

 

Step 8 Standards and Samples

  • Consult with local operations regarding preferred standards. Operations may use the Online Showcase to highlight their preferences (  My Project Wishlist).

  • Prepare schedule of samples required by operator.

  • Organise samples and brochures for preliminary Client review.

  • Check colours and finishes with designer

     

(Phase 4) Tender and analysis

Step 9  Tender

  • Prepare the order schedule/priorites by batches. eg batch 1 longest lead time items like bed linen and banquet  furniture. 

  • Tender to the suppliers agreed with Client/operator (equal and approved suppliers ) .

  • Local  procurement is by local partner.

Samples and tabletop

Step 10  Product presentations

  • Organise samples for   the final  presentations of equipment   including the table top presentation, banquet furniture presentation, model room samples presentation, for operations.

  • Final presentation coordinated by  local partner

  • Hotel coordinates the testing of quality eg  laundering of bedding , towels and uniforms.

 

Step 11 Negotiations

  • Ensure “devil in the detail” analysis of quotations.

  • Negotiate terms and prices, to ensure value for money.

 

(Phase 5) Purchase orders and delivery schedule

Step 12 Product Recommendations

  • Once the best quote has been selected I  upload online for the Client –the quote with  purchase recommendation (PRs) or PR-TBF (to be finalised by local partner with Hotel) , terms and conditions including warranties.  

 

Step 13  Terms and Orders

  • The Client finalises terms between the Client and suppliers eg payment terms and delivery schedule. 

  • The Client places their purchase orders direct with suppliers according to the purchase recommendation from us(PR). The contract is between Client and the supplier.

 

Step 14 Payment

  • Payment procedures implemented by Client eg advance payment (if agreed), L/C, bank guarantees, payment bonds etc.

Step 15 Supplier or manufacturer prepares  or manufacturers goods

  • Payment procedures implemented by Client eg advance payment (if agreed), L/C, bank guarantees, payment bonds et

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(Phase 6) Logistics.

Step 16  Tracking

  • Track & progress orders.

 

Step 17 Pre-ship inspections

  • Coordinate  the inspection of goods at factory and warehouse.

 

Step 18 Shipment

  • Logistics (by Client) who appoints  freight forwarder.

  • Final payment made by Client (according to terms) to suppliers before shipment.

 

Step 19 Shipment

  • When the shipment is ready the freight forwarder picks up the goods and ships goods to warehouse at port then ships by sea to nearest port  to the hotel.

  • Tracked by Client’s local team through freight forwarder/local customs broker.

 

(Phase 7) Importation, deliver to hotel, installation.

Step 20 Import/Clear goods; Receipt of Goods.

  • Coordinated and tracked by Client’s local team through freight forwarder/local customs broker  .

Step 21 Delivery Installation

  • Deliveries, installation and placement of goods coordinated by Client’s local team, hotel and project manager.

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