Uncertainty is not something that is good for event planning businesses. Clients want clear and concise contracts that don’t hide any details. However, being very clear in your event planning contract is not just for your client, but also for your own protection. Detailed clauses will help to protect you and your business from anything that may go wrong that is out of your control. They can also ensure you get paid.
There are 4 critical things you need in your event planning contract to make sure both sides are protected and understand what to expect. There are many more things that really should be included but these are four things that you should not ever leave out of the contract.
We all want to trust our clients and our clients want to trust us. But the sad truth is that not everyone is trustworthy, hence the need for contracts that spell out the details.
This list, as we said, is not comprehensive by any means. A well written and detailed contract may be several pages long and have many clauses in it. You can also edit your contract depending on the event and circumstances so that each contract is slightly different.
1. Cancellation Terms
These need to be very clear. In this clause, you can have subsections spelling out what happens if your company has to cancel, if your client has to cancel, or if the event is just no longer needed.
In this section, you need to talk about under which circumstances the deposit can be returned if it was refundable and what other monies would be expected. For example, if you have already paid the florist, the caterer, or the band and you need to get that money from the client – what would be your policy and procedure?
2. Included Services
What exactly are you going to do before, during, and after the event? You need to layout in the clearest way possible what your services include for this event and the amount of money that you are charging. Leave nothing to chance. People don’t like to be in the dark or to be left with unanswered questions. This helps to set expectations for both you and your clients that can be referenced if needed.
3. Payment Agreements
We all like to get paid on time and in the amount that was discussed. If you are taking payments such as a deposit and then certain amounts as the event approaches then you need to lay that out in this section. Be clear about the amount and the date that it is due. It wouldn’t be a bad idea to highlight that section so it isn’t missed or forgotten about.
4. Indemnification Clause
This is a protection clause for you and your company. This protects you from being responsible for damage done by the client or out of control guests. For example, if the event hall is damaged by a guest that maybe had a little too much to drink, this clause releases your company from needing to pay for damages. This also pertains to damage caused by anyone else that was hired by the client, a supplier, or the client themselves.