Capital works programs. (a) The Hotel Manager will:
(i) provide the Company and the Manager with insight into the short term capital works opportunities and longer term capital works opportunities for the Hotel;
(ii) complete detailed capital expenditure programs with expected return on investment and cash flow analysis on proposed capital works programs;
(iii) coordinate all minor and major capital works programs undertaken at the Hotel;
(iv) manage capital works programs, including:
(A) oversee the preparation and lodgement of development applications;
(B) appointment of contractors and service providers, including terms of appointment;
(C) services provided appointed contractors and service providers, including architects, town planners, builders, certifiers, draftsmen, solicitors etc;
(D) certification of completed works;
(E) scheduling of approved capital expenditure works; and
(F) managing capital expenditure and payments to contractors and service providers.
(b) The purchasing and scheduling of approved capital works will be undertaken by the Hotel Manager at the best price possible with no margin added.
(c) Minor capital works programs will be completed by the Hotel Manager’s appointed approved tradesmen to reduce costs to the Company.
(d) Capital works programs will be conducted at the Company’s cost and expense.
1. Base Fee
(a) From the Commencement Date, the Hotel Manager is entitled to receive the Base Fee, being an amount of $320,000 (plus GST) per annum; payable in equal fortnightly instalments in arrears.
(b) On the anniversary of the Commencement Date each year, the Base Fee shall be increased by the greater of 3% or the CPI Rate. For the purposes of this calculation, the CPI Rate is calculated as follows: B A = where: A is the CPI Rate; B is the CPI number for the quarter ending immediately before the relevant date of the calculation.
