Hotel Development Project Management Service Overview

* Project Management Service Agreement - Preliminary PhaseDetermine Scope of services to be provided to client and agree upon key contract termsAgree upon service fee and payment structureContract Signing

1 Design/Permitting PhaseReview, selection and coordination of all relevant consultants/service providers- Architect (Project Concept, Master Plan Design, Detailed Construction Plan, etc.) - Engineers (Construction, Electrical, HVAC, Safety, etc.)- Technical consultants (Engineering reports, Environmental study, Traffic assessement, Utilities, etc.)- Interior design (FF&E, F&B, etc.)- Legal counsel (Contract drafting, Advice on zoning/regulatory/commercial issues, etc.)Arrange for all technical/engineering studies and reports to obtain all necessary "Project Permits & Approvals"- Prepare preliminary site plan (Site plan approval)- Obtain both a boundary and topographic survey of the property (Land zoning approval and permit requirements)- Geological/civil engineering study (Excavation permits)- Utilities availability study (Electric grid connection, Sewer and water availability)- Traffic assesment report (Public-private road construction permit)- Building construction permits (Building codes, Fire & safety, etc.)- Soils report/environmental tests of the property from a certified engineer (Environmental approvals)- Easements and setback requirements (Review all zoning laws, building/construction codes and other government regulations relating to FAR, public space, height restrictions, landscaping, parking space, etc.)

2 Construction PhasePrepare and distribute RFP's for selection of project construction company- Research and draft preliminary list of candidates- Review submitted proposals --> select 'shortlisted candidates'- Conduct preliminary meetings with shortlisted candidates- Conduct 2nd round meetings for detailed discussions- Narrow down selection to 2 final candidates, conduct final meetings and negotiate final terms- Review terms with project sponsor and make final selectionAppointment of project Construction ManagerArrange for provision of utilities and other services to the projectSelect and negotiate contract for acquisition and installation of FF&E for projectSelect & negotiate contracts for all other consultants/service providers (Interior design, F&B layout design, landscaping, IT provision, Sound system, etc.)Administer and supervise the execution of all project contracts:- Monitor and report on construction progress in accordance to project schedule and advise project sponsor- Advise project sponsor of any disputes that may arise and act on their behalf to remedy the situation- Subject to the approval of the project sponsor, prepare, negotiate and issue all work change orders and directives- Ensure that the CM arranges for the identification and correction of all defects, deficiencies and punch-list items- Ensure that the CM arranges for certification of all progress and final payments and of project completion- Ensure that the CM arranges for certification of project completionPerform all relevant administrative duties in relation to execution of the project:- Prepare all construction loan documentation and process all requests for withdrawal of funds accordingly- Prepare a detailed project budget and project schedule for approval by the project sponsor - Establish project cost control and accounting procedures in accordance wth GAAP- Handle all banking necessary for due performance of the project sponsor's accounting functions and for the receipt and disbursement of all funds pertaining to the project which are required for fulfillment of PM's duties - Prepare monthly project reports: Progress report, Expense report, Variance reports regarding schedule/budget- Arrange for provision of estimating and cost accounting acceptable to lenders and provide reports as required- Give prior notice to project sponsor of any significant meetings and provide minutes of meetings within 5 days- Advise on insurance coverage and surety bond requirements and negotiate on their behalf on such policies to protect the sponsor and/or the project from any liability, damages or loss (builder's risk insurance, liability insurance, professional's errors and omissions liability insurance, etc.)

3 Pre-opening PhasePrepare pre-opening budget (Detailed estimate of working capital required to fund all pre-opening activitiesFinancial systems and controls (Set up all financial accounting systems and controls including initial budgets and operating projections)Set up operational departments and establish SOP's and policies for each department (Finance, HR, etc.)Licenses and permits (Obtain all operational licenses/permits such as liquor license, restaurant license, etc.)Personnel services:- Carefully screen and recruit key employees (General manager, department heads, etc.)- Recruit remaining employees in accordance to opening schedule- Develop HR policies in relation to employee benefits & welfare, professional development, - Develop incentive-based compensation plan designed to motivate and reward employee performance- Train employees according to established SOP's and hotel 'best practices'Selection and implementation of optimal technology and IT software, hardware and tools:- Property management system (PMS) to manage reservations, guest room status, payments, billings, revenues, etc.- POS software for F&B, spa, and other facilities- Sales and marketing management system- Back-office financial accounting software- Desktop workstations, mobile tablets for sales & marketing staff, hardware infrastructure, etc.- In-room entertainment system (A/V system, VOD/cable service, online websurfing, smartphone connectivity, etc.)- Telephone system- Conference facility audio visual equipmentSupplies (Order and purchase all initial inventories and operating supplies)Leases/agreements (Manage all 3rd party agreements for concessions of stores or other leased space within hotel)Pre-opening sales and marketing tasks:- Build website and online reservations system- Establish distribution network (Select and negotiate contracts with global distributions systems (GDS), online travel agencies (OTA's) and other specialty web-based reservations booking providers- Develop sales and marketing programs based on service/product offerings and for each departmental segment (F&B promotions, corporate events, H&B services, pool & lounge parties, weekend 'getaway packages', etc.)- Devise and initiate an advertising and promotion campaign in accordance with the grand opening of the hotel - Utilize cross-marketing platforms (loyalty programs, credit card companies, affiliate travel programs, etc.)

Arrange for all technical/engineering studies and reports to obtain all necessary "Project Permits & Approvals"

Financial systems and controls (Set up all financial accounting systems and controls including initial budgets

Licenses and permits (Obtain all operational licenses/permits such as liquor license, restaurant license, etc.)

- Property management system (PMS) to manage reservations, guest room status, payments, billings, revenues, etc.

Leases/agreements (Manage all 3rd party agreements for concessions of stores or other leased space within hotel)