Finally you are clear on which provider you want yes or yes for your event! But now you just need to sign the contract for your event. But do not worry! Because, although it may be somewhat confusing and long, in this article we decipher all the unknowns so that you do not get carried away by the emotion and sign without reading the fine print.
And it is that this professional paperwork is very important so that everything is clear and in writing, both for the provider and for the client and can be of great help in the future. But why?
The contracts for your event, this is why they are so important:
And, that everything is written on paper is essential in case of legal or payment problems during the process of organizing the event, so if something unexpected happens you can always go to the contract to know what to do in any circumstance.
A contract will free you from any damage, both as a business and a client, as well as from expensive fees and will help you set the limits from the first moment.
A document that you can always turn to and that makes everything so much easier and more confident!
This is how to start writing the agreement:
In as much detail as possible, making each and every one of the specifications clear, listing all the services that will be carried out and, of course, having an attorney or agency! Because nobody is better than them to evaluate and confirm if the agreement is legally binding, as well as to help you reformulate the clauses and thus always protect your business.
You can follow this simple model contract:
Step 1: Terms and conditions
First, you must answer the basic questions related to the event, such as: what type of event is going to take place? When is it the same? Where will it be located? What is the purpose of the event? Who will be the host? Or what tasks will be performed in the process?
In this section you can also specify what your work mode is, as well as the calendar to plan the event. The more information, the better!
Step 2: General company information
Here you must explain everything you are going to offer your clients, what your working hours will be, where your business is located, contact information and everything that your clients will get when choosing their company. Don’t forget to mention the roles your employees will play and their names!
Step 3: Services and products
One of the most important steps is this, since in it you will detail everything you will do and what you will not do as a supplier, what is the objective of the contract and why the client has hired you.
Here you must also define the timeline of the work plan, as well as meeting dates and, of course, each individual objective of the project that will achieve the main objective.
Step 4: Payments
Pay close attention to step 4! Because in this you will answer all the questions regarding the financial matter related to the event, such as: how much do the services cost? When will the payment be due and how will it handle the late payments? Are there relevant taxes and fees? When will it be sent? the final invoice? Or at what moment is the deposit to be entered?
Remember to mention that work cannot begin until the deposit is officially entered!
Step 5: Cancellation fees
Much to our regret, there are occasions that may require an event to be canceled, such as lack of funds, poor projected attendance, unforeseen venue disputes, bad weather, permission, or other important paperwork missing or arriving late, for personal or public health…
So, to protect and defend ourselves against these problems, a clause must be included specifying how much it costs to cancel, how long in advance to notify, when cancellation fees are due and any penalties that may result from fee payments. late cancellation.
Make it clear who can cancel the agreement and make sure you receive in writing the reason why the client cancels the event.
Step 6: Legalities
This section is where the legal and binding agreement, applicable law and jurisdiction, divisibility, indemnity, liability and guarantees will be indicated. But rest assured, if you do not know what all these terms mean, then we have prepared a guide with these technicalities to better understand the contract.
Step 7: Signatures
The last step is to gather all the signatures of the people interested in the execution of the event and involved in it. Give your time to all parties and be open to suggestions or possible modifications.
These are the technicalities that you will find in the contract:
Not included / Additional charges: Providers must be honest in contracts about what is included and what is being paid for. So, if there are additional fees or charges, they must be clear what they are for and why they have to be paid separately. For example, some providers may add travel fees.
Effective date: This is the day, month and year in which the supplier and the client agree to start working on the project.
Inclusive rates: It is the rate for executing the services and which includes all foreseeable expenses (including taxes, fees and possible overtime).
Force majeure clause: Also known as cancellation policy. There should be a clause in the contract that explains exactly what happens if the event is canceled and how, how much, and when clients will pay you for your work.
Severability: If you find that any of the tasks described in the contract is illegal or impossible to carry out, this establishes that, although one clause is declared null, the others will continue in force.
Master account: is a record of all the invoices that your client must pay on a certain date.
Hold harmless / Indemnity: If you need to take legal action, this section of the contract describes who is responsible for paying legal advice bills, and where it is specified that one of the parties is not legally responsible (generally the provider) if something goes wrong during the event.
Request for Proposals: This is an additional document that asks different providers for the best solution and budget to cover the needs that are sought. For an event, these can be photographers, catering, live entertainment …
Change Order: This defines what a client can additionally request from the event planner after the project begins.
Scope of services: A contract must clearly describe everything that is included in a package, as well as what the provider is responsible for.
Guarantee: Although it is certainly not mandatory, a guarantee is a formal way of telling your client that whatever happens, it will offer adequate compensation for your event.
Applicable Law and Jurisdiction – Defines which state laws and which courts are used to determine how the parties can legally monitor the contract.
Legal and Binding Agreement: This section of the contract describes that the finalized agreement is valid under state and federal law.
Gratuity: For some providers, tips are included as part of their total rate or package, but for others, they are not. So it must be specified if the tip is included in the contract or not.
Now you know all the terminology that you will find in the contract, the steps to start making one, and why it is so important to have it before starting to organize the event.
So, you are ready to contact that supplier that you like so much or contact us in Perfect Venue which is what you are looking for! Because we have a wide variety of the best professionals and a great experience. Do we organize your event?
Cover photo: Silvia Sánchez
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