The success of an event lies in the hands of the dedicated event organizers. These people will turn your dream event into reality—from the arrangement of the venue to the flow of the program. Moreover, the event planning process will be more efficient with the help of various documents. Although paperwork sounds like an added task, it would help event planners streamline business processes and communicate with their clients effectively. One of the most important documents in this specific industry is the event contract. Read on and learn more about it.
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What Is an Event Contract?
Generally, a contract is a legally binding agreement that establishes a clear relationship between two or more parties. It specifies the obligations and responsibilities both parties have to handle throughout the deal. Professionals in different fields make use of this document to streamline business processes, including events management. An event contract or event planning contract is a written document that protects both the client and the event planner. It specifies the services the business should provide, the payment terms, the duration of the agreement, the terms of cancellation, and other essential matters both parties should discuss.
How to Draft an Event Contract
Having an event contract template or a simple contract example will be your key to creating an enforceable event contract. But if you want to learn how to write this type of contract, just follow the steps provided below.
1. Remember the Basics
If you take a look at an event contract template, venue contract template, or any printable service agreement, you will notice that they have some identical components. Every agreement should specify the title, which is either on the top of the page or a separate cover page. Aside from that, the first clause should specify the names of the parties involved and other essential details about them.
2. Specify the Scope of Services
After writing the names of both parties, you now have to specify the scope of your services. The clients should have a clear understanding of what type of services your business will and will not cover. Commonly, an event planner would take care of the following: the venue, catering, event marketing (for concerts and other public events), audio/visual equipment, and on-site event staff. For businesses that provide other event necessities, they should also have a legally binding agreement, such as an event photography contract, event venue contract, or event stylist contract.
3. Indicate the Payment Schedule
Be it a birthday, a wedding, or a business party, organizing events will aways involve finances. For this reason, you have to specify the payment responsibilities of your client. In this clause, state how much you charge for your services, the available payment method, and the payment schedule.
4. Include Cancellation Terms
It is not nearly always that your client will push through with the event. That is why you have to include the cancellation terms in your contract for such circumstances. Having this in your agreement would protect your business from loss because it enables you to legally get the right amount of money for the services you render before the cancellation. You must also specify in this clause the acceptable reasons for cancellation.
5. Add an Indemnification Clause
Aside from the cancellation terms, having an indemnification clause will also protect your business in the event that the client has caused damages or loss. This section on your agreement will protect you from any legal action the client will take even if it is due to their negligence. On the other hand, it will also protect your client if there are lapses on your part.
Why are contracts important for an event?
A contract plays a vital role in event planning, especially when it involves another party that the event host has not had a relationship with. It protects both parties and ensures that the function will go as planned, given that they will both abide by the terms written in the document. Moreover, it avoids misunderstanding between the parties and provides them with the allowable actions to take if one breaches the agreement.
What are the seven elements of a contract?
For a contract to be enforceable, it needs to mirror the following elements:
- Mutually Beneficial
How much do event planners charge?
According to The Balance Small Business, event planners charge about 15%-20% of the client’s total expenses. Meanwhile, others charge on an hourly basis. However, their rate will depend on how complex the event is and the amount of time needed to organize it successfully.
With approximately two million attendees, the Guinness Book of World Records hailed Montreal’s Jazz Festival as the biggest jazz festival in the world. Such grand events call for extensive preparations on the part of the event planners. Nevertheless, these experts are of great help if you want to save yourself from the hassle of organizing your own event—big or small. But before sealing the deal with them, make sure to ask for an event contract and read the terms stated on the document.
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