Hotel Project Management & Purchasing
Hotel Project Management & Purchasing

Identify Owner's Goals and Objectives

We can’t achieve it if we don’t understand it. We review the Owner’s written goals and objectives. If these are not documented, then through brainstorming sessions or other vehicles we explore these and document them. Can the goals and objectives be achieved? PEBL will thoroughly vet what the owner wants to achieve. Will local code allow for a 10 story building? Is the owner’s budget of $120K per room sufficient to develop a four star resort property at this location?

Obtain Operator's Program

Establish the Three Key Elements

These are Scope, Schedule and Budget. When PEBL manages a project and these three key indicators are met, the end result is a successful project. The scope must be specific on all aspects of the project for the cost estimator and the operator to come to a full understanding. The budget must be complete without any holes and contain sufficient allowances for the designers to create the ‘WOW’ factor the owner and operator are looking for. The schedule must be detailed on all phases so that it can be used as a tool and as a contract exhibit for consultants and contractors.

Assemble the Best Team Available

Using tools developed over the last 25 years, PEBL will issue RFP’s for every key consultant and contractor necessary to the project. Just as the operator is key to the ultimate profitability of the hotel, the design team and construction team are the keys to the successful completion of any development. PEBL is well acquainted with both the firms and the individuals who provide the best service and have the expertise to take on the challenging projects and complete them successfully.

Project Accounting

From the initial approved budget to the contracts and purchase orders through the pay applications and invoices, PEBL understands and manages all aspects of the accounting process for your project. Each month we digest this information, cost code it and summarize it in a Project Cost Report (PCR). This one document provides all the information the owner needs to see where the project stands financially. How much of the budget has been committed? How much has been paid to date or paid that month? Each month we provide an up to date ‘Estimated Cost to Complete’.

Capital Control

In addition to providing current accounting information, PEBL puts in place all the best practices for safeguarding the owner’s capital. Current certificate of insurance, monthly waiver and release of lien forms, signed contracts or purchase orders are required and kept current. No payments are made to any entity that does not have all of these documents in place. We participate in the monthly pencil draw to review and substantiate the GC’s monthly draw. Finally, if requested by the owner we will write all the checks each month and provide these to the owner for his approval and signature.

Manage The Three Key Elements

PEBL takes the established scope and continually checks for scope creep and requested changes that will negatively impact the budget or schedule. Scope creep is the number one reason that projects are not successful. Control of scope creep is our number one priority. Schedule compliance is monitored and managed through milestone dates, schedule updates, action item lists and supplemental schedules. This is a continual task that actually extends beyond the hotel opening date. Cost estimates are prepared by the General Contractor under a pre-construction services agreement at each design stage to monitor. In addition, building alternates and options are priced out continuously during the design process. This is the only way to be certain of budget compliance throughout the design phase. PEBL maintains a log of all cost alternatives so that the owner can make informed decisions as they are presented. PEBL works with the PA along the way to provide similar information on the FF&E, OS&E and IT side of the hard costs. Value engineering, bidding, evaluating and negotiating change orders and monthly cost reporting are all steps that take place along the way to keep the project within the established budget parameters.

Manage the Project Design Team

It is PEBL’s role to keep the project team focused on the goals and objectives as well as the scope, schedule and budget. Through periodic conference calls, detailed action lists and progress drawings, PEBL monitors the work of the design team to insure that the three key elements are being met.

Manage the Construction Phase

Managing construction means managing information. RFI’s, bulletins, change order proposals, ASI’s, submittals, addendums, etc. These are all the language of construction information. PEBL keeps logs and action lists on these documents to insure things don’t fall through the cracks and that work proceeds uninterrupted. Hotel construction sites are too complex and have too many moving parts to leave all staging and logistics to the General Contractor. PEBL requires the GC to provide a site plan that shows staging areas, crane locations and other logistical information so that work can proceed in a thoughtful and organized fashion. Finally, managing construction involves material testing, permitting and site inspections by local officials, site visits by the design team, safety, mock-ups, OAC meetings, cash flow projections, insurance issues and more. PEBL has attended these meetings, read these reports, reviewed these mock-ups and dealt with permitting and inspection issues. Day in and day out we work in the owner’s best interest on all of these matters.

Manage the Purchasing Phase

PEBL understands purchasing as well as the purchasing agents. Our employees have done FF&E and OS&E purchasing on past projects. PEBL manages the purchasing process from hiring the purchasing agent until the last stick of furniture is in place. PEBL signs every purchase order, approves every invoice and inspects every item once it is in place.

Punch List

PEBL is the lead entity on the punch. It takes many steps; punch the rooms when the contractor has completed his work, repunch the rooms when the corrective work is completed and then punch the FF&E when it is in place but before the room is occupied. It takes many people: members of the design team, representatives of the operator including rooms and engineering, representatives of the contractor and in some cases representatives of the subcontractors. It takes place everywhere: every room, suite, corridor, electrical room, kitchen, public area and back of house area. The roof, exterior, garage, sidewalks, physical plant and elevators are all reviewed and deficiencies are documented. PEBL maintains this list until the last item is completed to the satisfaction of PEBL or the operator.

Manage the FF&E Installation Phase

The planning for the FF&E installation starts with the model room. Nothing can be purchased that will not fit in the elevators. Will the GC install the vanity mirror or will the FF&E installer handle it? PEBL is expert at managing the receiving, warehousing and installation of FF&E. Coordinating elevator access, scheduling furniture installation so it minimizes cross traffic with the GC and attending the weekly schedule meeting to prevent asphalt work and other work from interfering with ongoing installation.

Project Turnover

The single busiest time of the project is the last few months; specifically, the period of time from when the operator prepares to occupy the hotel to when the hotel actually opens to guests. PEBL organizes a series of meetings with the operator, GC, systems suppliers, FF&E installer and the key subcontractors to work out a turnover schedule that supports the operators needs including cutting over the phone system, startup of the PMS and POS systems to support operator training, installing admin furniture to support the move in date and most importantly, obtaining the Certificate of Occupancy for the required spaces so the operator can move in on the scheduled date.


PEBL requires documentary proof from the GC and their subs that all building systems have been started up in accordance with manufacturer’s instructions and that all such systems are functioning properly.

Project Closeout

PEBL starts the close-out process at the time contracts are issued by specifying which documents are required prior to the contractor getting paid. Included in these documents are: O&M manuals, as-built, final waiver and release of lien, certificate of occupancy, final sign-offs by the local building inspectors, final record of material testing, etc. PEBL compiles a log of these documents and maintains this log through final sign-off and final payment for each contractor.


PEBL obtains a written warranty from all contractors prior to making final payment. We also have the PA put the one year warranty requirement in all FF&E, OS&E and IT purchase orders or contracts. As most warranty claims take place after the hotel is open and operating, PEBL sets up the warranty procedures in advance with the hotel. We take great care to communicate to the hotel that all items are under a one year warranty. Further we provide the hotel with a list of contractors and purchase orders so that the hotel knows who to contact regarding warranty issues. We ask that the hotel copy PEBL on all warranty communications so that we can step in if: a warranty issue is not responded to promptly, or if a contractor or vendor is pushing back on a warranty issue for no good cause.