This article was first published in the May 2008 issue of Focus, the publication of the New York State Hospitality & Tourism Association
Do Not Leave the Meter Running During Renovation Projects
A room rendered unavailable because of ongoing construction is a running taxi meter of lost income. Just as a passenger in a taxi would not wait until the driver has traveled for ten minutes before announcing the destination, a hotel operator must clearly set out both the destination and route of its project before starting the work. Unless the destination and route are finalized before work begins, hotel operators risk being inundated with delays, increased costs and the prospects of a failed project.
Destination: A Timely and Satisfactorily Completed Project
Lost time equals lost revenue, and so the destination for hotel renovations is a timely and satisfactorily completed project. The operator's timing goals – such as completion by the next peak season – must be clearly defined to the contractor. Minimizing delay and meeting those goals is of utmost importance.
Route: What Is the Sequence of Work?
Sequencing hotel renovation work in a manner that minimizes intrusion on guests and limits work during peak periods is essential to a successful construction project. Both the operator and contractor must understand their respective roles in releasing portions of the project to each other, construction pauses and other matters that will result in a project with minimal disruptions on the hotel's operations.
Mapping It Out
Contract documents must clearly set out how the hotel owner foresees the phasing, starts and stops, and other timing considerations arising during renovation. The typical form construction contract used for hotel renovation projects is inadequate to address the complex issues involved. Instead, operators must create an agreement that contains the sufficient detail, role definition and incentives/disincentives that promote timely and coordinated performance.
About the author
Lawrence Bartelemucci is an attorney in the New York office of Anderson Kill & Olick, P.C. Mr. Bartelemucci's practice concentrates in the area of construction law, where he has drafted and negotiated numerous manuscripts and AIA form owner-builder, construction management, architect, design-build, and development agreements.
The information appearing in this article does not constitute legal advice or opinion. Such advice and opinion are provided by the firm only upon engagement with respect to specific factual situations.
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