Furniture, Fixtures & Equipment (FF&E) refers to tangible assets that are not permanently affixed to a building or its structure, and which can be removed without significant alteration to the property.
In project budgets, FF&E is typically procured separately from construction or fit-out contracts, and often handled by a specialist procurement team or third-party managed account.
By separating FF&E from the main build contract, projects gain clearer cost control, procurement flexibility, and scope definition. It also makes it easier to manage warranties, asset depreciation, and eventual replacement or upgrade cycles.
In sectors like hospitality, FF&E represents a major portion of the investment - covering everything from beds and wardrobes to IT equipment and kitchen appliances.
Q: How is FF&E different from OS&E?
A: FF&E covers furniture and large equipment; OS&E (Operating Supplies & Equipment) refers to smaller consumable and operational items like linens, crockery, and cleaning equipment.
Q: Is FF&E capitalised for accounting purposes?
A: Yes, in most cases FF&E is treated as a capital expense and depreciated over its useful life.
Operating Supplies & Equipment (OS&E) refers to the consumables and small equipment required for the ongoing operation of a property or facility, but which are not part of its fixed assets or large furnishings.
OS&E typically includes items that need periodic replenishment or replacement, and it is often procured in bulk shortly before opening or handover.
Clear definition of OS&E helps separate operational purchasing from capital expenditure (CAPEX) on FF&E.
In hotels, yachts, and serviced residences, OS&E is critical to guest or resident experience and must be carefully budgeted and coordinated for timely delivery before operations commence.
Q: How is OS&E different from FF&E?
A: FF&E covers major furnishings and equipment, while OS&E covers smaller operational items and consumables.
Q: Is OS&E treated as a capital or operating expense?
A: Typically an operating expense (OPEX), although some high-value OS&E items may be capitalised.
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