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Prism Hotels & Resorts

Prism Hotels & Resorts. Contract Administration Process. Contract Administration Process. Our responsibility for the contract administration process is governed by the management agreement (usually in Article IV). Responsibility. We depend on the general manager:

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Prism Hotels & Resorts

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  1. Prism Hotels & Resorts Contract Administration Process

  2. Contract Administration Process • Our responsibility for the contract administration process is governed by the management agreement (usually in Article IV).

  3. Responsibility • We depend on the general manager: • To identify a need and business purpose • To initiate the process • To negotiate with the vendor • To gain RVP support • To provide an initial draft of the agreement and all supporting documentation to the RVP for approval

  4. Responsibility • We depend on the RVP: • To provide approval • To acquire Owner approval if required by the management agreement • To acquire David Breeding, VP-Construction approval if required • To submit the draft contract and supporting information to Jina Richardson for legal and risk management review

  5. Key Contract Points • The ideal contract has the following: • In the Owner’s entity name • Term one year or less • No provision for automatic renewal • 30 day cancellation provision without cause and without penalty to the hotel • Requires the vendor to provide basic liability and worker’s compensation insurance naming the hotel as an additional insured

  6. The Process • Supported by two documents. • Prism Contract Approval Process Narrative • Intended to cover all key issues • Prism Contract Review/Approval Form • Intended to provide the answers to the key questions that should be asked during the review of a contract and provide a place for evidence of each required approval

  7. What Qualifies as a Contract or Agreement? • Service agreements (landscape, pest control, video providers, HIS, etc.) • Maintenance agreements (elevator, POS and PMS) • Operating agreements (dry cleaning, valet parking) • Advertising agreement (Travel Guide, billboards) • eCommerce (Hotels. COM, Expedia, Travelocity) • Leases (gift shop, rooftop antenna, van, postage machine) • Lodging or rooms agreements for long term base business (airlines, Corporate Lodging Consultants, Inc.) • Proposals for repair contractors

  8. Contract Terminations • Have you terminated an existing contract for the same service? • Termination letter and required notice • Liquidated damages

  9. Expectations • Acknowledgement in 24 hours • Simple contracts turned around in 72 hours. • More complex contracts will most likely require some negotiation, and will take longer depending on how thorough the review package is you send in and how quickly you or the vendor respond to questions. • Keep emergency requests to a minimum. Plan ahead. There should be very few times a contract is an emergency other than for emergency capital

  10. Finally • Make sure a fully executed copy of every agreement is returned to Jina Richardson in the home office. We keep a hard copy and a PDF copy electronically on file. • When an owner, the hotel or a buyer in a sale transaction is looking for a certain contract copy, it’s really embarrassing to not have it, and it could make Prism liable if not disclosed to a buyer.

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