In the dynamic world of project management, especially within the hospitality industry, several challenges can significantly impact the successful commencement of projects.

This blog will outline the challenges that could hinder a project at its early stages. without delving into solutions. However, understanding these challenges is the first step towards resolving them. While these issues are common for project managers, project owners, and CEOs leading large projects may not always grasp how seemingly minor problems can cause significant delays.

Here, I discuss five key issues I’ve encountered in past projects based on my practical experience.

1. Design challenges 

Design incompleteness is a common issue that can lead to various downstream problems. Often stemming from rushed timelines, limited designer expertise, inadequate stakeholder engagement, insufficient site investigations, BOQ errors, and lack of detailed specifications, these gaps can result in delays, cost overruns, and rework during construction. 

One of the simplest examples is limited designer expertise. A designer’s lack of knowledge about hotel standards and local building codes can lead to non-compliance, resulting in work rejection or rework. Additionally, a lack of detailed specifications can prolong the procurement process. Even if resolved, this can lead to prolonged negotiations and disputes between the contractor and the owner, potentially ending in legal issues.

2. Procurement Practices

Procurement practices play a vital role in the success of any project. However, wrong practices such as inadequate supplier vetting, lack of transparency, and poor contract management can lead to delays and increased costs.

Example: When procurement stakeholders lack experience in their field or rely on personal impressions for analysis, it can lead to poor decisions. This includes selecting unsuitable contractors, conducting unfair technical evaluations, and ultimately hiring incapable contractors.

Additionally, sometimes incorrect tender financial analysis leads to the chosen contractor de-scoping many items in the project. It’s ironic because the CEO thinks the budget is accurate and complete and will even consider rewarding the procurement officer before realizing there are many variation orders to sign.

3. budget preparation,

Setting an accurate budget is fundamental to project success. Errors in budgeting often stem from unrealistic cost estimates, lack of contingency planning, and failure to account for all project variables. These errors can lead to financial strain and project delays. 

For example, developers who rely on internal budgeting stakeholders without hospitality experience to set the project budget often miss critical requirements, such as specific consultants’ fees and equipment. This can result not only from a lack of knowledge but also from poor communication between technical and budgeting departments, which is another significant challenge in project commencement. Adopting a detailed and realistic budgeting approach, with regular reviews and adjustments, is essential to keep projects on track.

I’m not an expert in budgeting, but I’m certain that some projects were held due to unrealistic budgeting approaches. I’m sure you’ve experienced this too. 

4. Value Engineering Wrong Practices

While value engineering aims to optimize project costs without compromising quality, but due to budget issues sometimes meant to be cost-saving, at any cost, and at,, the expense of quality, incorrect practices can lead to subpar outcomes. Especially once this approach started after the tender process to achieve a certain budget.Wrong

This disorder in the tender process, with back-and-forth exchanges, can lead to lengthy procurement procedures, negotiations, and disputes between the contractor and the owner, potentially resulting in complicated project progress. 

While Misguided value engineering can result in the selection of inferior materials or designs that do not meet the project's original intent.

Of course, the designer isn’t always blameless in these situations. However, it’s crucial to provide them with a realistic budget and a clear project brief.

5. Materials Sourcing: Long Lead and Discontinued Materials

When discussing the materials sourcing challenge, we must consider factors such as designer experience in the designated market, stakeholder engagement during the design, value engineering and procurement practices.

Incorrect material sourcing practices can significantly hinder the commencement of a fit-out project. When materials are not sourced correctly, it can lead to delays in procurement, causing the project timeline to slip. This is especially problematic in the hospitality industry, where specific materials and finishes are often required to meet brand standards. Poor sourcing can also result in receiving substandard or incorrect materials, necessitating reorders and further delays. Additionally, a lack of communication between procurement and design teams can lead to mismatches between the materials ordered and the project specifications. This not only disrupts the schedule but also increases costs due to last-minute changes and expedited shipping. 

Conclusion:

Navigating these challenges requires a proactive and strategic approach. By addressing design incompleteness, refining procurement practices, setting accurate budgets, planning for material lead times, and implementing balanced value engineering, project managers can enhance the success and sustainability of their projects. As we strive towards Vision 2030, these practices will be crucial in delivering high-quality, sustainable, and innovative hospitality projects.

To mitigate these issues, it’s crucial to invest in thorough design processes, ensuring all aspects are meticulously planned and reviewed before moving forward.