Contractor on a hotel project? Consider these issues.

A construction project can be a stressful process. The construction of a hotel can make things even more complex. As a contractor hired for a new hotel project, you might find yourself unsure of what to tackle first or maybe you suffered an unfortunate experience in the past that you don’t want to repeat.

Consider four potential problem areas before you start your next hotel project:

Do you feel confident in your contracts?

Contracts are arguably the most important aspect of a construction project. They determine expectations, conditions, risks and obligations of an agreement between various parties. Not only can a contract guide the parties throughout the process, but it can also resolve potential issues that would arise later on. If a later dispute does arise, terms provided in a contract will likely reduce the amount of time spent resolving the issue.

Do you know the applicable rules and regulations?

It is important to know and understand the state, federal and laws that regulate where a hotel can be built, as well as zoning ordinances for a specific location. If a company hires a contractor, the contractor will likely be the one applying for permits and other necessary requirements necessary to start building. For instance, can you build a hotel in a historical district? Does the hotel company have a license for a restaurant? Is an easement required? Are there environmental laws that need to be accounted for? Are you covered if any insurance or premises liability issues arise? These questions can be overwhelming.

How do you ensure payment from all parties?

Building a hotel requires multiple parties, which means you frequently find yourself depending on payments from many separate parties. Make sure you understand the avenues available to ensure you receive the full compensation you were promised. If necessary, you may need to file liens and claims against parities for their failure to do so.

Avoid potential problems in the future by planning today

No one starts a project thinking problems will occur, but problems do often arise in major construction work. Hotels can be a big project with a lot of parties involved. You want to make sure you are completely ready for everything and everyone that comes your way.

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