1. You are maintenance manager for the Roach Motel. The hotel owners want some of the hotel's maintenance done by an outside contractor, and ask you to draft the maintenance contract. Which of the following should you include in the contract?
A. The contract should require that the contractor have adequate insurance, and specify the type and the limits of the coverage.
B. The contractor should include detailed specifications of the work to be performed and how frequently the work should be performed.
C. The contractor should state that legally, the contractor will be considered an employee or agent of the hotel.
D. A and B.
2. Motels and budget hotels have _____ space (percent) devoted to guestrooms than do large hotel and resort properties.
A. More
B. Less
3. You are planning to build a small 40-room motel. You have $140,000 dollars for the budget. You might be able to come up with another $10,000 in an emergency, so $150,000 is definitely all you can spend to build your motel. In developing the project budget, the general contractor comes to you and says that the cost of constructing your motel will be $130,000. Should you build your 40-room motel?
A. Yes. The construction costs are $10,000 less than your "comfortable" budget, $20,000 less than your "emergency" budget, so you have enough funds to build your motel.
B. No. Since construction costs are only 60 to 65 percent of the cost of a new motel or hotel, you should not try to build your 40-room motel.