Purchasing Associates

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Preliminary Budget Analysis

The firm prides itself on treating each project as unique entities with unique requirements. As such, PAI's analysis of the FF&E budget will accommodate the client's needs, the designer's vision and the positioning of the property in the marketplace.

Model Room Development and Review

The firm will be actively involved during the model room design development stage. If PAI has been contracted in the early stages of the project, we will lend our assistance to the designer in recommending sources for the manufacture of the one-off quantities required for the model who would be among the likely sources also capable of producing in quantity and at a competitive price. With sufficient timing allowed for this important stage, the firm can also begin the value engineering process.

Interior Design Specification and Drawing Review

In an effort to minimize questions during the bid process, PAI will review the designer's documents and jointly resolve any ambiguous information therein.

Quantification Analysis

The firm's project team will initiate a physical count or "take-off" of each FF&E item from the designer's coded plans and compare the results with the quantities provided by the designer. Any discrepancies will be addressed with the designer, and a resolution determined, prior to the issuance of the purchase orders and final cost reporting.

Project Scheduling/CPM Development

Pursuant to the client's objectives, and reflective of the timelines of the work of the other project consultants, PAI will develop a CPM which will mesh all of the milestones into one cohesive and comprehensive schedule.

Cash Flow Document

PAI will prepare for the client a cash flow document indicating anticipated monthly cash flow of the FF&E through project completion stage.

Pre-Bid Qualifying

The firm will "qualify" all potential bidders of FF&E by assessing their current financial stability and factory capabilities. Any recent management changes will be analyzed to determine possible impact on customer service, quality control and production capacity. The list of bidders to be pre-qualified will include the designer's specified sources as well as client recommendations.

Source Recommendations

PAI will recommend for consideration to the designer and client all manufacturing sources that have recently provided the firm with the best "value"; i.e., the best quality-for-price ratio, excellent production capability and superb custom service.

Competitive Bidding

The firm will prepare comprehensive bid document packages for release to the final approved list of bidders of FF&E. The bid documents encompass all relevant information needed in order that each bidder will have a full and complete understanding of the work.

Bid Analysis & Value Engineering

After receipt of all bids, PAI will analyze each for completeness and thoroughness. The firm will resolve any questions with each bidder before preparing spreadsheets for each bid category. One of the most crucial components of the FF&E bid process is the discussion with each bidder of the way in which to engineer the item to obtain the best value for the client without sacrificing the designer's vision. PAI excels in this process.

Bid Summary & Recommendations

The results of the bid analysis and value engineering process will be presented to the client and designer. PAI will discuss the merits of each bid and provide the rationale for their award recommendation. Before the award is finalized, the firm may coordinate for the client a personal interview with a number of the bidders along with a visit to their facilities.

Contract Negotiations

The firm will negotiate the most favorable contract package with the bidders encompassing price, payment terms, production schedule and other salient issues. The client is encouraged to be personally involved with PAI in this process.

Purchase Order Preparation & Transmittal

After presentation of a final FF&E cost report, and based on the results of the final contract decisions, PAI will prepare purchase orders and contracts as Agent for the client. A draft version of each document will first be sent to the designer for review and approval, prior to the original contract documents being submitted to the client for approval.

Order Expediting

As one of the most important links to the success of the project, PAI provides continuous follow up with each vendor to ensure compliance with promised ship dates and to resolve any issues that could prevent timely shipment.

Actual vs. Budget Reporting

The firm maintains cost controls for FF&E with itemized reporting to the client that details the variance between the original approved budget and the current forecast. Updates are provided monthly or as required by the client.

Delivery Status Reporting

PAI provides continuous updates on the delivery status of each FF&E item through their affiliate, Strategic Project Services.

Vendor Invoice Auditing/Payables Reporting

The firm's accounting department audits each vendor invoice against the purchase documents. After internal approval, the audited invoices are forwarded to the client for final approval prior to payment within the vendor's agreed terms.

Fire Certification Documentation

PAI obtains all necessary fire certification compliance documentation for each vendor. The certificates are presented to the client in bound format prior to project completion.

Attic Stock Inventory

The firm maintains a separate inventory of all purchases made for project attic stock. The client's attic stock is always maintained separately from the quantities required for the project installation.

Project Closeout Documentation

At project completion, final, reconciled and audited reports are presented to the client representing the complete cost of the FF&E including all final freights costs, taxes, and discounts as well as status of any open items, damaged items, or non-conforming items, and the action required in order to reach an expeditious conclusion.

Freight Management & Logistics

The firm will utilize the services of their affiliate, Strategic Project Services, a freight logistics specialist who is in tune with the intricacies of FF&E transportation.

Furniture Liquidation

Should the Owner require liquidation of the existing product, the Firm will secure the services of an expert in hotel liquidations.

On-site Installation Coordination

The Owner will require an FF&E coordination specialist to represent his interest on the site for 3-6 months prior to the project completion. In the event the Owner has not already retained the services of such an individual, PAI can either recommend qualified individuals to the Owner or we can include these services as part of a turn-key contract.

Warehousing and Installation

The firm will secure bids and procure the services of a specialist in the warehousing, inventory and installation of Hotel FF&E. These services could either be part of a total turn-key packages or can be let by the firm, on the Owner's behalf, as a third-party contract.