Manual Example
Venue Contracts (extract from the Manual).
The purpose of a contract is to specify what is to be delivered at what price.
Hotels do not like surprises e.g. severe reduction or increase in numbers at short notice.
Check for any guarantees that you give such as catering or accommodation numbers.
A guarantee given by you that you will supply a certain minimum number of delegates for catering or accommodation, will carry a penalty for default.
Essential components
- Who is the contract between? Is it you or the Organizer? If it is with you and it has been negotiated by the Organizer, ensure you are fully aware of the terms, reduction in numbers, penalties, review dates and payment dates. Be careful not to sign a contract in your own name, which may incur liability. If you have a company or association, ensure that you have the authority to sign in that name.
- You do not want to be liable for a room block size that is unrealistic and you must ensure you agree with the venue on the dates for the room block review. Generally, the first room block review is when the earlybird registration closes. It is at that time that you have some data for better forecasting.
- Good contracts are easy to read (i.e. in nonprofessional’s language) and provide checklists of certain tasks with agreed dates for you and the Organizer.
- Review the Room Block requirements and General Conditions (cancellation, no show, upgrade, reduction in number) to be aware of penalties.
- Ensure you acknowledge and add to the budget, the penalties for a shortfall in numbers from your room block.
- You could consider protecting your event from a situation where a venue has excess rooms to sell and they wish to advertise at a rate less than what you have negotiated. If the venue does have a “fire sale”, the accommodation offer must be designed so that it is not generally available to your delegates e.g. the offer is for extended stays well before or past the conference date.
- Accommodation rates quoted by the accommodation venue must allow for a commission payable to an agent for handling all accommodation matters i.e. direct liaison with those who wish to book, collating all bookings, arranging bookings for your VIP’s, all venue liaison on bookings and changes and managing the room block(s).
It may be helpful to create a list of the items below and include them as a schedule in the contract as most Venue Contracts are difficult to interpret by the layman.
Taking care to understand the implications of the items below will give you reassurance.
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Before you start negotiating with venues or suppliers, you should consider:
"what is the best desired outcome for both parties".
Do not sign the contract until you understand the implications of the terms.
Take the contract away, read it thoroughly and do not be afraid to ask any questions for clarification.
