Event Planning Contract

Learn How to Protect Yourself

....and there as many answers to that as there are events going on in the world at any given time!

Of course, contracts are a necessary part of life, especially in business. In "the good ole' days," a man could be held accountable by his word and a handshake. Unfortunately, those days are gone; and if you don't have a legally binding event planning contract to back you up when things go wrong, then you don't have a leg to stand on.



You might have noticed that I said "for when things go wrong," not if things go wrong. Because "events" were given that name for a reason; they are live gatherings where eventful things occur....in other words, something ALWAYS goes wrong!

For this reason, an event planning contract is a necessary evil in the event business.

In the world of events, just about everyone needs a contract to "CYB" (cover your bum). Here are some examples of the contracts that are needed for any given event (we'll go into greater detail down below).

• The event planner and the client need a contract to outline the terms of service; including fees, payment schedules, cancellation clauses, time-lines, and overall expectations.

• The event planner and the venue need a client to solidify dates, fees, cancellation clauses, and overall expectations.

• The venue, in turn, needs contracts with every vendor that helps them out; including food vendors, security companies, staging and audio visual companies, parking services, and so on.

• The event planner needs a contract with any supplemental staff, including on-site coordinators or other contractors she has hired to help her out.

• The event planner needs a contract with every vendor that will be a part of her event; including catering companies, audio visual companies, production companies, keynote speakers, decor companies, DMC or transportation companies, entertainment, disc jockeys, and so on.

• When dealing with entertainment, especially big-name entertainment, you will have two contracts. One is with the agency that is providing the entertainer (or the production company, or with the entertainer directly).

  The other contract is an outline of what the entertainer needs and expects. This is called a "rider." You may have heard the infamous story of the famous band that demanded two pounds of M&Ms in their dressing room, with all of the green M&Ms removed. If this was true (and I have no doubt that it was), then that is something that would have been outlined in the band's rider.

  A rider usually outlines what the entertainment needs in his/her/their dressing room; specific food, specific types of soda, a clothes rack, full-length mirrors, and so on. Riders can range from the basic to the extreme; but either way it's still a contract and you, as the planner, must provide all it asks for.

It is important to note that different representatives enter into different contracts with various vendors. For example, a concert venue will contract with a food supplier to order the food for an event and the security needed to control traffic and manage crowd control. The event planner, on the other hand, has a contract with the venue, and perhaps a separate security company that is hired to protect her high-profile keynote speaker. The venue is in charge of anything as it relates to the venue; the planner is in charge of anything as it relates to her event.

***Please Note: This advice does not replace the advice of a lawyer, and the following is not enough to prepare a legally-binding contract. It is vitally important to consult with an attorney when creating your contracts, in order to protect yourself appropriately.***

It is literally impossible to tell you every element you need for your contracts, because every single event is different. However, almost all contracts do share some basic elements. Remember, when push comes to shove, all you have is your event planning contract; so make sure it contains anything specific to your event.

Here are a few "basics" that should be included in every contract:

• The names of the two companies/people involved. In entertainment, be sure to mention the entertainer as well. For example, a contract between Mary Smith Events and The William Morris Agency (a huge agency that manages talent) should also mention the contract is for "Jay Leno." If you merely mention that the contract is for "comedian," then you could easily end up with an unknown if something falls through with Jay.

• The dates of the event.

• The location of the event (include specific addresses, so it can't get confused with another venue of similar names).

• Outline the specifics of the service and what is expected. For example, "all planning services for upcoming national training meeting" for an event planning contract, or "one-hour performance" for a comedian.

• Fees and payment time-line. "Total fee of $10,000; with 50% due by April 1, and the remainder due at conclusion of event" or "due net 30 after the final bill at conclusion of event."

  For a planner, it's also a good idea to set parameters of how much time you think it will take. "A fee of $10,000 for up to 200 hours; with the option of re-visiting the fee if more time is required" or something similar.

• Every contract absolutely MUST contain a cancellation clause. This outlines your expectations of how you will get paid if the event cancels. What if you work for three months on planning a meeting, and the client cancels the meeting? You need to get compensated for the time spent planning the meeting; even though it never happened, that was precious time that you could have been working for someone else.

  A common cancellation clause might be "If event cancels within three months, 50% plus expenses will be due;" or "within one month, 100% of the fee is due." Again, it will vary with your specific circumstances, but don't take this lightly.

  Also remember what payments YOU might owe someone ELSE if the project cancels. This can include deposits, time lost, or expenses, so be smart about it.

You can see why consulting an attorney is well worth the $200 it might cost you. If you can't afford an attorney, then you can't afford to be in business by yourself yet!

Take contracts seriously; they are the foundation of your business as a planner!


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