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1st Sem Hotel Engg. Notes

Essential requirements of a contract, types of contract, their comparative advantages and disadvantages.

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Last updated: 4 July 2023

In the hotel industry, contract maintenance is a common practice to ensure that all equipment and systems run efficiently. However, before entering into any contract, it is important to understand the requirements of a contract. Here is a detailed guide to help you understand the essential requirements of a contract and the types of contracts used in the hotel industry.

Essential Requirements of a Contract

  • Offer and acceptance: The first essential requirement of a contract is an offer from one party and acceptance from the other party. The offer must be clear and specific, and the acceptance must be communicated clearly and unconditionally.
  • Intention to create legal relations: The parties must have an intention to create legal relations. A contract is only enforceable if it is a legally binding agreement.
  • Consideration: There must be consideration or something of value exchanged between the parties. This could be in the form of money, goods, or services.
  • Capacity to contract: The parties must have the legal capacity to enter into a contract. This means that they must be of legal age, have the mental capacity to understand the terms of the contract, and not be under any duress or undue influence.
  • Legal formalities: Some contracts may require certain legal formalities such as being in writing and signed by both parties.

Types of contract, their comparative advantages and disadvantages.

Piece Work Contract

A piecework contract is an agreement in which the contractor is paid only for the work completed. The advantage of this type of contract is that the client only pays for the actual work done, which provides cost savings. However, it is difficult to estimate the total cost, and there is no incentive for the contractor to complete the work quickly.

Lump-Sum Rate Contract

In a lump-sum rate contract, the contractor provides a fixed cost for maintenance. The advantage of this type of contract is that the client knows the exact cost of the work upfront. However, the contractor may not complete all required maintenance, and there is no incentive for the contractor to complete the work quickly.

Rate Contract

A rate contract provides a fixed cost for maintenance over a set period. The advantage of this type of contract is that the client knows the exact cost of the work for a specific period. However, the contractor may not complete all required maintenance, and there is a possibility that the contractor may not prioritize necessary maintenance tasks.

Service Contract

A service contract ensures routine and preventive maintenance. The advantage of this type of contract is that it ensures regular upkeep of the project, which can extend its lifespan. However, it may be more expensive than other contract types, and there is limited flexibility for emergency repairs or replacement.

Turnkey Contract

A turnkey contract involves a single contractor handling all aspects of the project. The advantage of this type of contract is that it simplifies the project management process for the client. However, it can be more expensive than other contract types, and there is limited flexibility for changes or modifications to the project.

Multi-Stage Contract

A multi-stage contract provides flexibility and allows for assessment at each stage of the project. The advantage of this type of contract is that it allows the client to evaluate the work at each stage and make adjustments as necessary. However, it may require significant administrative oversight, and there is a possibility that the contractor may not prioritize necessary maintenance tasks.

Cost Plus Fixed Fee Contract

In a cost plus fixed fee contract, the contractor is paid for all expenses and an additional fixed fee. The advantage of this type of contract is that the contractor has an incentive to complete the project efficiently. However, the final cost may be unclear at the beginning of negotiations, and the contractor may have less incentive to complete the project efficiently.

In conclusion, the selection of a specific contract type for maintenance services depends on the nature of the work, the equipment involved, and the specific needs of the hotel. Understanding the different types of contracts available can help hotels select the right contract that can result in effective maintenance management of their equipment and facilities.

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Syllabus BHM106

01 Maintenance

  1. Introduction
  2. Preventive and breakdown maintenance, comparisons
  3. Role & Importance of maintenance department in the hotel industry with emphasis on its relation with other departments of the hotel.
  4. Organization chart of maintenance department, duties and responsibilities of maintenance department

02 Fuels used in the catering industry

  1. Introduction
  2. Types of fuel used in catering industry; calorific value; comparative study of different fuels
  3. Calculation of amount of fuel required and cost.

03 Gas

  1. Introduction
  2. Heat terms and units; method of transfer
  3. LPG and its properties; principles of Bunsen burner, precautions to be taken while handling gas; low and high-pressure burners and their corresponding heat output
  4. Gas bank, location, different types of manifolds

04 Electricity

  1. Introduction
  2. Fundamentals of electricity, insulators, conductors, current, potential difference resistance, power, energy concepts; definitions, their units and relationships, AC and DC; single phase and three phases and its importance on equipment specifications
  3. Electric circuits, open circuits and close circuits, symbols of circuit elements, series and parallel connections, short circuits, fuses; MCB, earthing, the reason for placing switches on the live wire side.
  4. Electric wires and types of wiring
  5. Calculation of electric energy consumption of equipment, and safety precautions to be observed while using electric appliances.
  6. Types of lighting, different lighting devices, incandescent lamps, fluorescent lamps, other gas-discharged lamps, illumination, and units of illumination.
  7. External lighting
  8. Safety in handling electrical equipment

05 Water systems

  1. Introduction
  2. Water distribution system in a hotel
  3. Cold water systems in India
  4. Hardness of water, water softening, base exchange method
  5. Cold water cistern swimming pools
  6. Hot water supply system in hotels
  7. Flushing system, water taps, traps and closets.

06 Refrigeration & Air-conditioning

  1. Basic principles, latent heat, boiling point and its dependence on pressure, vapour compressor system of refrigeration and refrigerants.
  2. Vapour absorption system, care and maintenance of refrigerators, defrosting, types of refrigerant units, their care and maintenance.
  3. Conditions for comfort, relative humidity, humidification, dehumidifying, due point control, unit of air conditioning
  4. Window type air conditioner, central air conditioning, preventive maintenance
  5. Vertical transportation, elevators, escalators

07 Fire prevention and fire fighting system

  1. Classes of fire, methods of extinguishing fires (Demonstration)
  2.  Fire extinguishers, portable and stationery
  3.  Fire detectors and alarm
  4. Automatic fire detectors cum extinguishing devices
  5. Structural protection
  6. Legal requirements

08 Waste disposal and pollution control

  1. Solid and liquid waste, sullage and sewage, disposal of solid waste
  2.  Sewage treatment
  3. Pollution related to the hotel industry
  4. Water pollution, sewage pollution
  5. Air pollution, noise pollution, thermal pollution
  6. Legal Requirements

09 Safety

  1. Accident prevention
  2. Slips and falls
  3. Other safety topics

10 Security

11 Equipment replacement policy

  1. Introduction
  2. Circumstances under which equipment are replaced.
  3. Replacement policy of items which gradually deteriorates
  4. Replacement when the average annual cost is minimum
  5. Replacement when the present cost is minimum
  6. The economic replacement cycle for suddenly failing equipment

12 Audio-visual equipment

  1. Various audio-visual equipment used in hotel
  2. Care and cleaning of an overhead projector, slide projector, LCD and PowerPoint presentation units
  3. Maintenance of computers
  4. Care and cleaning of PC, CPU, Modem, UPS, Printer, Laptops
  5. Sensors – Various sensors used in different locations of a hotel – type, uses and cost-effectiveness

13 Contract maintenance

  1. Introduction
  2. The necessity of contract maintenance, advantages and disadvantages of contract maintenance
  3. Essential requirements of a contract, types of contract, their comparative advantages and disadvantages.
  4. Procedure for inviting and processing tenders, negotiating and finalizing