FF&E: Overview, Procurement Process & Company Picks

Owning a hotel is a wonderful idea. However, the excitement tends to fizzle out at the thought of FF&E procurement. Interestingly, with the right information, the procurement process for FF&E won’t be as difficult as it seems. However, so many people don’t even know what FF&E stands for. So, in this article, we’ll look at the definition of FF&E, what it stands for, and a list of hotel procurement companies you can choose from.

FF&E Definition

The definition of “FF&E” is any item in a building that does not affect the structure of the building when you remove it. Examples are office equipment, lamp fixtures, air conditioners, office furniture, etc.

However, some items, such as toilet seats, kitchen sinks, windows, and doors, are not FF&E. They are part of the building and, therefore, will change the state of the building when removed.

If you’re an owner of a commercial property, say a hotel, FF&E is important for accounting and tax purposes. The depreciation for items included in FF&E is calculated differently from the property itself. Consequently, this can have an impact on the book value of the business or enterprise. For example, the IRS considers computing equipment to have a useful lifespan of five years. The office building that houses the computers, however, depreciates according to a 39-year schedule. FF&E deductions can help boost your qualified business expense each year, lowering your income tax in turn. First, let’s know what FF&E stands for.

What FF&E Stands For?

FF&E stands for fixtures, furniture, and equipment.

They are assets contained in a commercial building but are not part of the building itself. FF&E items are called assets because they have tangible value. They are also useful for the everyday activities that take place in a commercial building. However, they are not permanently attached to the building, they can be removed. A common example is office furniture.

FF&E Procurement

FF&E procurement is the sourcing, budgeting, purchasing, delivery, and installation of FF&E items in hotels, residences, and other commercial buildings. It entails working with a procurement officer to identify and select the right products to meet the requirements of your market, your location, and your brand. Simply put, FF&E procurement is the selection and purchasing of FF&E items. 

Finding the right FF&E items for your hotel can be a herculean task. It is a specialist discipline; it requires significant industry experience, solid financial acumen, strong negotiation skills, and a global supply chain and logistics capability. Therefore, it is important to work with an experienced procurement officer who can serve as a guide in making your purchasing decisions.

An experienced procurement officer or team will source, negotiate, purchase, and install all of your FF&E items, making sure to create cost-saving opportunities for you. They also work with a network of suppliers and couriers to ensure that your items are delivered and installed on time, and with little difficulty.

Read Also: Supply Chain Management: What is SCM and Why is it Important?

FF&E Procurement Process

This is the step-by-step process that procurement officers or companies follow when making FF&E item procurement decisions. The process of procuring FF&E items involves a lot of activities, such as budget planning, detailed research, market survey, etc. Generally, the FF&E procurement process involves the following steps:

#1. Project Start up

This involves meeting with the procurement team and other related parties to introduce the project, as well as the management team. Project kick-off meeting with all applicable parties to introduce the project management team.

#2. Budget Analysis

Your procurement team will carry out a budget analysis. This involves taking into account in detail all the costs involved in carrying out the procurement project. 

#3. Timeline Check

Your team will source from, examine, and negotiate with qualified vendors to ensure that the quality and price points meet the expectations of the client.

#4. Creating a model house

Your team will set up a model house to analyze specifications and ensure that the client as well as the management team is comfortable with the final products. 

#5. Purchase Management

Your team will work with the chosen suppliers to manage and oversee the purchasing of all items required for your project. They will also provide regular project reports, with the project providing regular progress reporting, including tracking of submittals, samples, shop drawings, and other design-based documents.

#6. Product Tracking, delivery and installation analysis

Your team will work with the chosen installation contractor, and provide the necessary information to help organize the delivery and installation of all FF&E items. They will also track products from the point that they leave the supplier until they reach their final destination. During the process of installation, progress reports will be made and submitted to the relevant parties on a regular basis.

#7. Final Inspection

After the installation is complete, your procurement team will consult a final inspection to ensure that all specifications were being adhered to. This will also ensure that the client’s needs were satisfied.

With this process fully complete, you have a hotel that is tastefully furnished, and equipped to provide the best hospitality services you can think of!

lets see a list of hotel FF&E procurement companies in the next section

Hotel FF&E Procurement Companies

Below is a list of hotel FF&E procurement companies that you can choose from. Note that the listing is not in any particular order.

#1. OCCA

OCCA is a team of professional, goal-driven, and focused specialists in FF&E procurement. They leverage on decades of industry experience and a global sourcing network to deliver outstanding results for our clients’ capex projects and budgets, creating lifelong client relationships in turn.

The OCCA Procurement team is made up of established industry experts dedicated to delivering highly effective purchasing solutions for your hotel, residential, and workplace projects. With decades of experience in successfully sourcing, procuring, shipping, and installing FF&E products on projects worldwide, you can be sure that all your procurement needs will be met. Also, leveraging our international supply chain, we have the network and technology to maximize your capital investment.

You can contact them via

Telephone @ 0141 348 7670

Email: [email protected]

#2. Hotels Made Easy

With a project management team staffed with professionals and over 40 years of competence in management and installation services, Hotels made Easy can be a sure plug. 

Hotels made Easy offers nationwide installation services, as they consolidate furniture, equipment, millwork, graphics, etc. They’re capable of handling your project from start to finish, so you’ll have less worries about a third-party contractor walking away. 

With hotels made easy, you have a team that can help you, as well as provide excellent customer service to handle any claims or complaints that might come up along the line.

You can contact them via

www.hotelsmadeeasy.com

#3. Beyer Brown

Beyer Brown & Associates is one of the leading hotel FF&E procurement firms, providing award-winning purchasing services for many years. Over the years, they have established a renowned reputation for providing value and cost saving services for project owners.

Beyer Brown specializes in FF&E procurement for a variety of hotel property types and builds. From ground up new construction to historical renovations, your project will be handled with optimum efficiency. With FF&E purchasing services that extend across the hospitality industry to a wide range of brands and luxury levels, you can be sure of living out your dream hotel. The project managers have a high level of experience and training in different hotel types, and are aimed at giving you nothing but the best.

With a well-detailed procurement process, Beyer Brown offers a client-focused experience that combines friendly and highly experienced staff with easy-to-use reporting systems. Consequentially, this leaves the client with a peace of mind unmatched in the procurement industry today. 

You can make enquiries via [email protected]

Read Also:HOW TO ADDRESS A PACKAGE: Addressing an item for prompt delivery

Is HVAC Considered FF&E?

Toilets, sinks, and air conditioners, to name a few examples, are usually not included in FF&E and are instead considered to be part of the business itself. The same can be said for things like windows and doors.

What are FFE Costs?

Tenant’s expenditures for the purchase and installation of furniture, fixtures, and equipment in the Premises are referred to as FF&E Costs.

What is not Covered in the FF&E?

Note that FFE does not include things like food, drink, paper products, floor finishes, wall coverings, tiling, or plumbing fixtures like faucets. No reception desks or other similar built-in millwork are included either.

What is the Difference Between FF&E and OS&E?

Furniture, Fixtures, and Equipment (FF&E) and Operating Supplies and Equipment (OS&E) are two different terms for the same thing. FF&E refers to all of the hotel’s consumables and is not a structural component. OS&E refers to all the consumables that wear out and need to be replaced frequently.

Does FF&E Include Finishes?

FF&E doesn’t typically imply finishes, such as tile, wallpaper, paint, etc., but it is often blended into the definition on smaller and more residential projects.

How is FF&E Calculated?

The straight-line method of depreciation is commonly used for deducting the cost of furniture, fixtures, and equipment over the asset’s estimated useful life. This method involves dividing the initial purchase price by the estimated number of months over which the asset will be used.

Conclusion

As we already discussed, FF&E stands for “furniture, fixtures, and equipment.” Now you may ask, “Why do I require the services of a procurement company when I can source for FF&E items myself?” Well, the truth is, procurement of FF&E items is not an easy venture. It involves a whole lot. You sure wouldn’t want to go through the rigors of checking out manufacturing companies and supply agents for each item you need. You’ll also need some purchasing advice. And then, what about the shipments, logistics, and installations? You wouldn’t want to go into all of that! That’s why you need the help of a procurement company.

Procurement companies comprise a management team that specializes in handling all logistics and processes required to source for, acquire, and install all your FF&E items, helping you achieve your goals while saving you money. Now, that’s a good try. We’ve introduced some of these companies to you, and we hope you get the satisfaction you’re looking for. Good luck!