Hospitality Management: Asset Management and Acquisition Report

This report provides a comprehensive analysis of asset management within the context of a hospitality business, specifically focusing on Café B. It examines various factors influencing asset acquisition, including inflation, post-tax returns, and effective annual rates, alongside mandatory acquisitions driven by revenue growth and operational objectives. The report delves into depreciation methods, recommending the straight-line method for its simplicity and suitability for small firms, while considering factors like asset cost, useful life, and salvage value. It details the selection of suppliers for assets such as impinger ovens and POS systems, evaluating criteria like cost, reputation, and after-sales services. Furthermore, the report recommends the implementation of the BMC asset management system for enhanced visibility, control, and compliance of IT assets. The report also covers financial aspects, including finance and leasing costs, setup costs, maintenance costs, and training costs. Finally, it addresses funding options for asset purchases, suggesting borrowing for POS systems and impinger ovens and the use of retained earnings for refurbishments.

Running head: HOSPITALITY MANAGEMENT
Hospitality management
Name of the student
Name of the university
Student ID
Author note

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Table of Contents
Section 1 – acquisition of asset..................................................................................................3
Part 1......................................................................................................................................3
Part 2......................................................................................................................................3
Part 3......................................................................................................................................3
Part 4(a)(i)..............................................................................................................................5
Part 4(b)(i)..............................................................................................................................6
Part 4(b)(ii).............................................................................................................................6
Part 4(c)(i)..............................................................................................................................7
Part 5......................................................................................................................................7
Part 6(a)(i)..............................................................................................................................7
Part 6(a)(ii).............................................................................................................................7
Part 6(a)(iii)............................................................................................................................8
Part 6(a)(iv)............................................................................................................................8
Part 6(b)..................................................................................................................................8
Part 6(c)(i)..............................................................................................................................8
Part 6(c)(ii).............................................................................................................................9
Part 6(c)(iii)............................................................................................................................9
Part 6(d)(i)..............................................................................................................................9
Part 7......................................................................................................................................9
Section 2 – Asset management system (BMC asset management)..........................................10
Part 2(a)................................................................................................................................10
Part 2(b)................................................................................................................................10
Part 2(c)................................................................................................................................11
Part 3(a)(i)............................................................................................................................11

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Part 3(b)................................................................................................................................11
Part 3(c)................................................................................................................................11
Part 3(d)(i)............................................................................................................................11
Part 3(d)(ii)...........................................................................................................................12
Part 4(a)................................................................................................................................12
Part 5(a)(i)............................................................................................................................12
Part 5(a)(ii)...........................................................................................................................13
Part 5(b)(i)............................................................................................................................13
Part 5(b)(ii)...........................................................................................................................13
Part (5)(c).............................................................................................................................13
Part 6(a)................................................................................................................................14
Part 6(b)................................................................................................................................14
Part 7(a)................................................................................................................................14
Part 7(b)................................................................................................................................15
Part 7(c)................................................................................................................................15
Section 3 – Asset Replacement................................................................................................15
Part 1(a)(i)............................................................................................................................15
Part 1(b)(i)............................................................................................................................15
Part 1(c)(i)............................................................................................................................16
Part 1(c)(ii)...........................................................................................................................16
Part 1(c)(iii)..........................................................................................................................16
Part 2(a)................................................................................................................................16
Reference and bibliography.....................................................................................................17
Appendix..................................................................................................................................20
1. Contract agreement.......................................................................................................20
2. Loan agreement.............................................................................................................24

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Section 1 – acquisition of asset
Part 1
Various particular factors are there those required to be considered while thinking if
acquiring Impinger Oven, Alfresco Dining area, iPad systems and paperless online booking
system. These factors are as follows –
 Inflation – if the inflation rate of any country changed the purchasing power of the
people also changed. Hence, while considering acquiring of any asset effect of
inflations shall also be taken into consideration (Glasson and Gibbons 2015).
 Post – tax return – after tax return is always lower as compared to pre-tax return.
Hence, Café B must consider regarding the possible return that may be created from
the asset. Hence, before taking final decision regarding investment post tax return
must be computed.
 Effective annual rate – generally the nominal rate of return does not match with the
annual return rate owing to the compounding rate in the year. Hence, it must be
considered before considering the investment (Campbell, Jardine and McGlynn
2016).
Part 2
Mandatory acquisitions are taken into consideration with the concern of various
aspects like growth of revenue, capacity of production and margin of profit. It shall further be
considered that the acquisition shall be made in such manner that it shall fulfil the key
objectives of the entity. These key objectives are depending on the paperless system of
inventory control, POS ordering and enhancing the payment amount of dividend over the 5
years time period. Further, the asset management register shall also be taken into
consideration for details regarding the accounts payable, general ledger and system for
managing the assets (Garleanu and Pedersen 2018).
Part 3
Cash budget year 1

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Cash budget year 2
Cash budget year 3

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Part 4(a)(i)
Various factors considered while constructing the Alfresco dining are as follows –
 Market environment – while the big private companies considers any investment they
must take into account the fact that they shall be extra cautious that they may not be
able to sell the asset within the specified time. Further, as there is restrictions on
lending to the public organization, Café B shall keep in mind that they have limited
option for borrowing.
 Operational decisions – factors those have direct impact on the cash budget includes
the strategic and financial decisions those are taken by the management of the
company. For instance, if the company is required to make the payment in advance it
will lead to cash shortages whereas if the customers are allowed to pay in advance it
will enhance the cash level of the company (Park, Seong and Kim 2016).
 Industrial or economic factors – as the company is engaged in delivering food
services to the customers, likelihood is there that the food industry may face economic
down turn or increase in the COGS during particular time period. This scenario will
require additional efforts from the employees and management of the company to
maintain the sales level or recovering the downturn situation. Hence, this may lead to
cash shortages during that time period (Dalal, Gilboa and Mannor 2016).

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Part 4(b)(i)
It is recommended that for all the 3 assets classified by Café B it shall use straight line
method for charging depreciation on those assets. Under this method, the carrying value of
the asset is reduced gradually over the term of useful life of the asset. This method is used
where any particular pattern of using the asset is not identified and this method is considered
as the easiest method of charging depreciation as it results into less number of calculation
errors. As per this method the asset’s initial cost is determined and its estimated salvage
value is deducted from it (Del Giudice, Manganelli and De Paola 2016). Thereafter the useful
life of the asset is determined and the initial cost reduced by salvage value is divided by the
useful life to get the amount of depreciation. This method of charging depreciation is
recommended due to the below mentioned reasons –
 Simplicity – it is the simplest method of charging depreciation as the calculation
method is very simple and even an ordinary person also can understand the
calculation
 Appropriate for small firms – this method is most appropriate for the small firms as it
is simple, easy and suitable to the size of the firm (Cheng and Wei 2017)
 Comparison – as amount of depreciation charged remain same all over the useful life
of the asset, profit comparison for different years is easier through this method.
 Suitability – this method is suitable for those assets which can be used consistently
over the useful life of the assets and where the useful life can be reliable estimated.
Part 4(b)(ii)
Factors taken into consideration while selecting the straight line method for charging
depreciation are as follows –
 Cost of asset
 Useful life estimated for the asset
 Estimated salvage value of asset
 Obsolescence shall be considered while determining the useful life of the asset
 Maintenance of capital
 Managerial decision
 Suitability to the organization

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Part 4(c)(i)
Café B shall made all the acquisitions during December that is before the end of the
1st year as the company will be able to generate most amount of sales during that month.
Further, owing to sufficiency of cash acquisition of the asset will not have any adverse impact
on company’s cash status (Komljenovic et al. 2016).
Part 5
Various steps have been taken into consideration for improving the services and food
products provided by Café B. for assuring the quality of food, the company decided to
purchase the products from the reputed suppliers in the market. Further, for providing the
seating arrangements under the open air it has increased the patronage and considered
refurbishing of the dining space. As wide numbers of suppliers are there in the market
bargaining power of the purchasers are high and hence, Café B can purchase the product at
comparatively lower price if proper research is carried out in the market. This will further
enable the company to achieve 4% annual growth for revenue.
Café B is required to purchase 3 POS systems and 10 impinger oven to achieve its
business objectives. It will further enable the company to expand the capacity of pizza
production through producing 60 pizzas additionally per hour. Further the company will
consider the environment friendly equipment those will also ensure the sustainability aspect
of environment. The same aspects will be considered while implementing the POS systems
that will also enhance the operational efficiency of the company.
Part 6(a)(i)
Finance cost is the cost of borrowing the funds. It includes the interest charges and
other charges those are involved in borrowing the amount for purchasing the asset. On the
other hand, leasing costs states all the capital costs and amount spend for improvements of
the capital, painting, equipment, partitioning, decorating. Leasing will enable Café B to
control the asset as per the agreed terms with payment of instalments and the rates that will
cover the interest and depreciation charges to cover the capital cost (Ang 2014). However,
leasing cost will not be applicable for Café B as it will purchase all the assets instead of
taking it for lease.
Part 6(a)(ii)
Set up cost is the cost associated with the set up of piece of the production equipment.
Set up cost includes cost of setting up the mechanic, scheduling cost, cost of keeping the

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record and testing of 1st few units of the output. From the given scenario it can be stated that
Café B will incur $ 45,000 for setting up for modifications of the floor plans.
Part 6(a)(iii)
Maintenance cost is the cost that is incurred for keeping the asset in god working
order. While purchasing the asset apart from purchasing cost the purchaser shall also consider
the maintenance cost of the asset. From the given scenario it can be stated that Café B will
require incurring $ 205 per month for as maintenance cost.
Part 6(a)(iv)
Training costs for the staffs is incurred to provide training to the employees to use any
new asset smoothly. From the given scenario it can be stated that Café B will require
incurring $ 2,000 for providing training to the staffs.
Part 6(b)
POS used as the synonym for point of sale. POS transactions take place among the
merchant and customers whenever the service or product is purchased through common use
of POS systems for completing transaction. Merchants generally use the POS system for
completing the sales transaction. It includes both POS software as well as POS hardware for
creating POS machine to process the payment and transactions. Under POS system cash
registers are not evolved and it lacks various various features and functions of the modern
day POS system. Cash register can be considered as the solution for POS system technically
(Lam, Lee and Tsai 2018). However, it can be used for enhancing the staff’s efficiency
regarding customer solution. Further, it will improve the efficiency and will minimize the
human errors apart from increasing the sales level.
Part 6(c)(i)
Asset acquisition Names of the suppliers
Refurbishment of dining area Kitchen Equipment Australia
West Coast Office Equipment
Impinger Oven BTU
Sydney Fire Bricks
POS systems Retail Express
Maplewave

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Part 6(c)(ii)
Asset acquisition Names of the suppliers price quotation
Refurbishment of dining area Kitchen Equipment Australia $ 45,000
West Coast Office Equipment $ 42,000
Impinger Oven BTU $ 113,000
Sydney Fire Bricks $ 108,000
POS systems Retail Express $ 32,000
Maplewave $ 34,000
Part 6(c)(iii)
While selecting a particular supplier, Café B carried out sufficient research in the
market. On the basis of the market research particular supplier has been selected for all the
above mentioned 3 items on the below mentioned criteria –
 Cost of the product
 Reputation of the company
 Delivery period
 Past experience, if any
 After sales services
 Technical support provided by the company (Naude and Martin 2018).
Part 6(d)(i)
For purchasing the POS systems and Impinger oven Café B can raise the required
fund through borrowing as raising through equity is not available at this moment and if
compared, borrowing is cheaper against equity. Another advantage of raising through
borrowing is that it is deductible under tax whereas equity is not eligible for deduction
(Medina et al. 2017). On the other hand, for the purpose of refurbishment the company can
use its retained earnings available with it.
Part 7
Follow the appendix

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Section 2 – Asset management system (BMC asset management)
It is recommended that Café B shall use BMC asset management system for
managing their asset. It will assist in gaining the visibility, control and compliance of the IT
assets for revealing true value they deliver. It is considered as the delightful solution based on
cloud for managing the asset. It can be used by small scale companies and it can work on
computer as well as mobile platforms. Payment for the software can be made yearly or
monthly basis and it supports various languages including English (Bmc.com 2018).
Part 2(a)
BMC asset management provides complete management for the lifecycle of the asset
from purchase to end of its life with details of deployment, depreciation, ownership, context,
state and operation (Council 2016). Further, it has space for general data collection that can
be used by Café B to generate all required data associated with the asset.
Part 2(b)
Financial data section under BMC asset management has space for complete
depreciation schedule linked with the asset. It has various depreciation options like written
down value method, straight line method, and useful life period, salvage value and amount of
depreciation. This space can be used by Café B for detail presentation of depreciation.

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Part 2(c)
Asset values get detected with the help of asset cloud due to the reason that it have a
maintenance history which is being conducted upon a particular stock. All the maintenance
schedule of the asset and relevant information regarding it are directly stated by the software.
The click button present there helps the café to conduct its operation and keep track of all the
assets and information related to it with ease.
Part 3(a)(i)
In the BMC asset management software the maintenance schedule is user friendly and
simple due to the reason that it is able to highlight the information within the software that
identify whether the conduction of schedule maintained is smooth or not (Kavadias, Ladas
and Loch, 2016). There exists providence of maintenance sheets where the reports can be
observed within the software itself. Through logging in the maintenance of the assets, the
maintenance schedule can be assigned and the relevant details can be filled regarding the
details of maintenance.
Part 3(b)
All the pertinent information are needed to be inputted within the software beside
which the requirements of maintenance in details should be incorporated within the
maintenance sheets after logging in the asset maintenance separately. Notably, there does not
exit any separate label related to maintenance while the operational aspects of the machines
requires fulfilments in detail regarding maintenance, time wise listing, etc. which can be
altered as per consecutive changes in the requirements. Moreover, the minimal requirements
regarding the assets gets effectively understood through the implications of the interview
schedule.
Part 3(c)
All the information regarding the procedure of maintenance of the assets can be
detected by the internal staffs which eventually helps the staffs to enlist all the related
specification and remaining requirements regarding maintenance followed by conducting the
process in a smoother manner that are relevant to all the sections based on the requisites
necessities of the asset maintenance.
Part 3(d)(i)
There is prevalence of alerts within the BMC asset management software which are
set in accordance to the operational needs. This helps in detecting the maintenance as well as

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non-maintenance of the assets after the schedules maintenance is executed (Zhong, Tse, and
Fung, 2016). Alerts provides an awareness regarding the completion of maintenance as well
as if it is been found that the scheduled maintenances of assets re not accomplished in the
rightful manner then the alerts provides detailed information regarding such activities which
aware the internal the staff to take steps accordingly through additional operational
effectiveness. Specialist assistance are redesigned by the operators who adequately assigns
external service providers to cover up the issues related to non-maintenance of the assets and
provide plentiful supports in order to meet the requirements of the maintenance of the assets.
Part 3(d)(ii)
Accessibility of the assistances are conducted within the software after enlisting the
assets and eventually thee maintenance off the assets are processed. Along with this relevant
measures are undertaken to fetch out appropriate information regarding the intermediate
processes that are executed through the maintenance off the assets and is used the café as a
vital information regarding the progress of the activities related maintenance of the assets as
revealed by the software and tracked by the internal staffs (Campbell, Jardine and McGlynn,
2016). During up gradation of the assets within the system these information obtained
becomes a tool of assistance that supports further decision making regarding completion and
non-completion of the maintenance of the assets. Moreover, while conducting the
maintenance related initiatives these measures directly supports in the contracts through
specialists assistance.
Part 4(a)
The required level of condition is maintained within the café due to the intervention of
Asset Cloud through undertaking of adequate measures. Additionally, the café becomes
capable of evaluating the existing condition of the maintenance of the assets band take
essential measures as per situational need to meet the requirements of the maintenance of the
assets (Hastings, 2015). Precisely, the asset maintenance condition is effectively monitored
through this process.
Part 5(a)(i)
The advantage of the BMC asset management software specifically is that it provides
information about the ongoing processing and existing scenarios regarding the maintenance
of the assets in a periodic manner and whenever and wherever required. The timeliness of
information through the Asset Cloud generates adequate information which helps the

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management to confront with plentiful alternative options which taking decision or executing
them. The aspect of asymmetric information gets minimized due to affectivity of the Asset
Cloud system (Bmc.com 2018). The fortnight report generation supports not only the
decision making but also ensures that the regulatory framework designed through it provides
reports which helps the asset management system and detection of any discrepancy which
may arise due to non-completion of the asset maintenance activities.
Part 5(a)(ii)
Partially it may seem that the scheduled process of asset maintenance only takes care
of the reports regarding the completion and non-completion of the assets. However, the actual
scenario is that it also focuses on the individual aspect of the process like the efficiency,
safety as well as the effectiveness of the maintenance of the assets. These help inn detection
of the potential condition of the assets that are acquired by the cafe as well as help to
understand the trends of maintenance of the assets. Notably, this raises the operational as well
as managerial performance without any sort of disruption and mitigates the possible risks
associated with the process (Bmc.com 2018).
Part 5(b)(i)
The presented data as revealed by the BMC asset management software enables the
opportunity to assess the information obtained and make decisions based on them. These
make the managerial decisions undertaken regarding the maintenance of the assets much
more credible and secure the future of the assets of the cafe.
Part 5(b)(ii)
The daily condition monitoring process enables through the data collection process
helps in reviewing the asset history. Along with that the software provides opportunity to the
café to assess the maintenance of the assets and monitor tem adequately which supports the
future acquisition of the assets (Bmc.com 2018).
Part (5)(c)
The feedbacks of the formal as well as informal customers recorded within the
software which are adequately incorporated within the reporting regime as proposed.
Moreover, the management gets benefitted due to Asset Cloud as it supports different levels
of report regimes and ensures that the managerial decisions that are undertaken by the
management should circumscribe the best possible and feasible decisions that are appropriate
for the asset management.

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Part 6(a)
Based upon the existing business environment the asset management practice through
this manner creates the platform for effective optimization of spending as well as enables the
possibility of strategic decision making. Asset discovery is a corollary to that of asset
management practice. The problems that prevails in the areas of asset management may be
remotely handled if they are been identified within the business landscape. Moreover,
detecting the critical assets as well as asset prioritization are major constituents on this
respect. Followed by these factors, license management of the patents is a time consuming
process which requires acquisition of new assets. It also depicts continuous automation as
well as outsourcing that will permit the allowable changes over time upon the assets as per
requirements. Along with that, different types of practices are needed to be rejuvenated
within the accounting system to update the database within regular intervals. Moreover, the
future valuation of the assets will become more errorless due to effective practice of the asset
management initiatives.
Part 6(b)
The maintenance of the assets are in accordance with the industry accreditations and
hence it legally contribute to the revenue generation stream of the company. Thus major
changes regarding expansion of productivity as well as enhancing the accumulation of net
profit will take place pertaining to the industrial standards. Apart from raising the
productivity and profit this way of practice of asset management will also bring betterment in
the utilization of assets.
Part 7(a)
The practice of asset management through this procedure will include incorporation
of accounting techniques taking under consideration the structural reformulation in terms of
post-closing matters, pre-closing formalities, due diligence and purchase agreements of the
assets as well as preliminary agreements (Crossley and Male 2015). It also takes under
consideration the ledger group assets where the asset registration format is inclusive of the
relevant details of the assets comprising of the form of the asset numbers, description of the
assets, parent asset number, bonus rate, original cost, depreciation ratio, date of service
placed, etc. Within 3 to 5 years the aforementioned procedures will get accomplished.

16HOSPITALITY MANAGEMENT
Part 7(b)
Several measures are accommodated in the procedure of asset registration in order to
maintain a high degree of accuracy in the process of asset management. These measures are
tested through the quality rate, performance rate, utilization of the assets and their respective
availability. The warranty information of the assets will also be cross-checked along with the
maintenance tasks and relevant attribute examination of the assets. Beside maintenance off
the assets it is essential that the relevant information regarding the maintenance of the assets
are regularly updated within the reports. The asset registration format if filled with
appropriateness then it ensures that the quality of the assets is kept at the standardized level of
asset maintenance.
Part 7(c)
Straight line method is used for estimating the depreciation of the assets. Based on it
the WDV of goodwill is depicted to b 50000 while for the year 2015/16 is found to be 19800.
The summed about of depreciation is found to be 192200. Improvement in the asset
management system is able to estimate the highest WDV in order to implement the POS and
other kitchen equipment that is been identified to be $ 36000 and $ 13,800 is the value of
POS.
Section 3 – Asset Replacement
Part 1(a)(i)
To ensure that the maintenance of the assets is consistent and reliable, the process of
categorization of the assets becomes a bit risky procedure and hence is given the highest
priority. To avoid major breakdowns of the Sanremo Opera Coffee Machine in times of
necessity, replacement of equipment that possesses high risk is implemented. Notably, assets
similar to that of Electric Fryer – EF – 28 L, glass washer, Café Umbrella, etc. are skilfully
replaced in order to ensure that the risk are minimized and the priority is given to effective
and systematized asset management without failure.
Part 1(b)(i)
During major breakdowns Sanremo Opera Coffee Machine is unable to provide
service which is the reason for its replacement while La San Marco SM 92 Industrial Coffee
Grinder generates shocks in times of its operation and hence needs replacement.Electric Fryer
- EF-28L has a faulty thermostat and hence considered to be a wastage and along with that

17HOSPITALITY MANAGEMENT
Proving Cabinet is found to be risky which may cause injuries. Notably in case of AXWOOD
glass washer – UCD – 400 it is been found that the technician have to wait for a lot of time
due to shorts in the wiring and hence replacement of this asset is a major requirement.
Moreover, unexpected collapse is observed in SUNRANGER Cafe Umbrella as peer the
complaints of thee customers and so it should also be replaced. FAGOR EVO-ADVANCE
needs replacement for the extra cost that is been incurred through it due to rewashing of
hands and use of chemical.
Part 1(c)(i)
3 years is the overall projected timeframe for the acquisition of the assets. However,
these needs to be processed with the ELECTMAX Range - ZH-TT-6C, Proving Cabinet as
well as BM545 Commercial Stick Blender respectively.Notably, the acquisitioning of
RATIONAL Combi Oven - CombiMaster 101, THERMASTER Reach-in cooler - SUC1500
TROPICAL, BONVUE Heated Food Display FGSW1800LS, Electric Fryer - EF-28L and
Walk-in cooler - Nor-Lake KLB771012-C Kold Locker have an acquisition timeframe of 2
years.
Part 1(c)(ii)
The contribution to the revenue growth by the considered timeframe is at least
annually by 4 % while in case of net profit it is of 8 % off the upcoming two consecutive
financial years. These acquired assets will contribute in the ordering of paperless iPAD POS
which ensure creation of provision for the allocation of inventory control which are paperless
by nature.
Part 1(c)(iii)
The existing assets are considered in the initial purchase and pioneered for thee
budgeted costs that are majorly distinguished along with the total fixed cost having the
amount of $ 212000.
Part 2(a)
Assets that cannot be included for meeting the longevity and safety requirements like
that of the HANKIN Cocktail which evaluates the outcomes of the table games should be
reconsidered.

18HOSPITALITY MANAGEMENT
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21HOSPITALITY MANAGEMENT
Appendix
1. Contract agreement
1AGREEMENT BETWEEN OWNER AND CONTRACTOR
For use when a stipulated price forms the
Basis of payment and to be used only
With the General Conditions of the Contract
THIS AGREEMENT made on the 1st day of November in
the year two thousand and eighteen .
BY AND BETWEEN
___________________________________________________________________________
_______Cafe B
___________________________________________________________________________
____
Hereinafter called the "Owner"
AND
___________________________________________________________________________
_______Sydney Fire Bricks
___________________________________________________________________________
__

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Hereinafter called the "Contractor"
WITNESSETH: that the Owner and Contractor undertake and agree as
follows:
ARTICLE A-1 THE WORK
The Contractor shall:
(a) Do and fulfil everything indicated by this Agreement, and
(b) Commence the Work by the 22nd day of November
, 2018 and substantially perform the Work of this Contract as
certified by the Engineer/Architect by the ___2nd ____ day of
___December______ 2018 .
(c) The "Engineer/Architect" is the person designated as such from time
to time by the Owner.
ARTICLE A-2 CONTRACT DOCUMENTS

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The following is an exact list of the Contract Documents referred to in
Article A-1: (SEE TABLE OF CONTENTS FOR LIST OF DOCUMENTS AND
DRAWINGS). See Attached
ARTICLE A-3 CONTRACT PRICE
THE CONTRACT PRICE IS $
_108,000______________________________________________________
_____________________ (GST INCLUDED) Australian funds which price shall
be subject to adjustments as may be required in accordance with the
General Conditions of the Contract.
ARTICLE A-4 PAYMENT
(a) Subject to applicable legislation and, where such legislation does
not exist or apply, in accordance with such prescribed regulations or
industry practice respecting holdback percentages and in
accordance with the provisions of the General Conditions of the
Contract, the Owner shall:

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(1) Make monthly payments to the Contractor on account of
the Contract Price. The amounts of such payments shall
be as certified by the Engineer/Architect; and
(2) Upon Substantial Performance of the work as certified by
the Engineer/Architect pay to the contractor any unpaid
balance of holdback monies then due; and
(3) Upon Total Performance of the Work as certified by the
Engineer/Architect pay to the contractor any unpaid
balance of the Contract Price then due.
(b) If the Owner fails to make payments to the Contractor as they
become due under the terms of this Contract or in any award by a
court, interest at the rate and in the manner specified in Certificates
and Payments shall become due and payable until payment. Such
interest shall be calculated and added to any unpaid amounts
monthly.
ARTICLE A-6 SUCCESSION
The General Conditions of the Contract hereto annexed, and all other
aforesaid Contract Documents, are all to be read into and form part of this
Agreement and the whole shall constitute the Contract between the
parties and subject to law and the provisions of the Contract Documents
shall ensure to the benefit of and be binding upon the parties hereto, their
respective heirs, legal representatives, successors and assigns.

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N.B. Where any legal jurisdiction, local practice or client requirement calls
for proof of authority to execute this document, proof of such authority in
the form of a certified copy of a resolution naming the person or persons
in question as authorized to sign the Agreement for and on behalf of the
Corporation or Partnership, should be attached.

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2. Loan agreement
1. CONSUMER LOAN AGREEMENT
1. Parties: The undersigned is_Cafe B__________________, the Borrower,
and the Lender is_____Bank of Queensland__________________________________.
2. Date of Agreement:_15-11-2018
____________________________________________
3. Promise to Pay: Within _24____months from today, I promise to pay to
lender____$ 108,000_____________________ dollars ($ ), and interest and other
charges stated
below.
4. Responsibility: Although this agreement may be signed below by more than one
person,
I understand that we are each as individuals responsible for paying back the full amount.
5. Breakdown of Loan: This is what I will pay:
1. Amount of Loan: $__$ 108,000________
2. Other (Describe) $__Nil________
3. Amount financed: $__108,000________
(Add 1 and 2)
4. Finance charge: $__17,280________
5. Total of payments: $_125,280_________
(Add 3 and 4)
ANNUAL PERCENTAGE RATE___8_____________%
6. Repayment: This is how I will repay: I will repay the amount of
this note in __24___equal uninterrupted monthly installments of $_5220_____
each on the __30th ___ day of each month starting on the_30th ____day
of_December______,
2018____, and ending on __30-11-_______, 2020____.
7. Prepayment: I have the right to prepay the whole outstanding amount at any time. If
I do, or if this loan is refinanced-that is, replaced by a new note-you will refund the
unearned finance charge, figured by the Rule of 78-a commonly used formula for figuring
rebates on installment loans.
8. Late Charge: Any installment not paid within ten (10) days of its due date shall be
Subject to a late charge of 5% of the payment, not to exceed $_250____for any such late
Installment.
9. Security: Tp protect lender, I give what is known as a security interest or mortgage
in: land situated in west Sydney in the name of the company

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10. Default: If for any reason I fail to make any payment on time, I shall be in default.
The lender can then demand immediate payment of the entire remaining unpaid balance
of this
loan, without giving anyone further notice. If I have not paid the full amount of the loan
when the final payment is due, the lender will charge me interest on the unpaid balance at
___12___ percent ( %) per year.
11. Right of Offset: If this loan becomes past due, the lender will have the right to
pay this loan from any deposit or security I have with this lender without notice to me.
If the lender gives me an extension of time to pay this loan, I still must repay the entire
loan.
12. Collection fees: If this note is placed with an attorney for collection, then I agree
to pay an attorney's fee of fifteen percent (15%) of the unpaid balance. This fee will be
added to the unpaid balance of the loan.
13. Co-borrowers: If I am signing this agreement as a co-borrower, I agree to be equally
responsible with the borrower for this loan.
Agreed To:
Café B Bank of Queensland
Borrower Lender

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