It cannot be stressed enough how important it is to spell out every
detail that may impact on an event’s success when drawing up the
contract. Always keep the budget in mind when negotiating any of the
contracts involved in an event. The location is often the first contract
to be signed. The event organizer
should have a clear picture of the event’s requirements, including
the absolute musts along with items that would enhance the event, but
are not necessary for its success.
On both sides, the contract should be negotiated by the people who have
power of decision and signing authority. The location’s contact
may be the general manager, the food & beverage manager, the head
of reservations, the facilities manager, a board president (with
museums or historic sites), et cetera. Always ask for the best price
and the most inclusions; the worst that can happen is that the location’s
negotiator will decline to do so. Usually, though, there is room for
price improvement. Any additional charges should be discovered and laid
out in the contract at this time.
Depending on the venue, it is often possible to negotiate discounts
based on attendance (the economy of scale). A conference
or convention
being held in a hotel may be able to get free meeting space based on
attendees booking hotel
rooms. But, should the expected room bookings fail to materialize, the
hotel may then charge the event organizers
the regular rental rates.
If the event will be using the location’s food & beverage
department, the room costs are typically included in the fee. So are
most of the staffing costs, although areas like the coat check, security,
washroom attendants, décor set up and take down, and valet parking
may be considered extras and billed accordingly.
If the organization holds regular events, like quarterly sales seminars,
for example, and the venue is suitable for them, it may also be possible
to negotiate a discount based on return business.
The basic points to bear in mind for almost any location contract include:
The
event dates,
including set up and tear down time
- Room use hours (if possible, conference
rooms should be available around the clock)
- Due dates for deposits and payments
- The exact location, by both the room name and number (i.e.., Room
3, the Crystal Ballroom)
- The staffing that is included, and exactly what duties they will
perform
- The minimum staffing costs, and when overtime hours apply
- The furnishings (i.e., tables, chairs, podiums, speaker stages,
curtaining, carpets, etc.) that are included in the location rental
- The numbers and type of tableware and glassware that is included
- The supplied audiovisual
equipment
and staffing, if any, and the associated costs
- The cost, if any, of clean up
- Price reductions and free meeting rooms based on number of attendees,
attendant booking blocks, et cetera and subsequent penalties if attendance
goal is not met
- Agreed upon cancellation dates and penalties
- Necessary permits and who will provide them
Other points include the food & beverage contract, if it is part
of the venue agreement, loading and unloading access locations and times,
parking, the general condition of the location (i.e. if a garden event
is planned and half the
garden
is dug up for replanting, the venue will not have the desired ambience).
If a site has been chosen for its view lines, make sure it that is stated
in the contract that the scenic ambience must be preserved for the event.
Essentially, anything that will affect the budget, the service delivery,
and the feel of the event, should be written into the contract. A gala
which included a cigar aficionado salon (the organizer had rented a
tent for the hotel
grounds) ran into problems when, on the day of the event, the hotel
informed the event organizer that the hotel garden was a non-smoking
zone. The cigar salon was forced to move to a corner of the parking
lot, which detracted from the hoped-for impression of luxurious pampering.
| Ottawa Conventions.com
Event Planning 101
Chapter 2: Location
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