W42 Events Guide To……..Negotiating a contract

Contracts with venues is one of the main areas of conflict in the conference business.

To avoid dispute, make sure you read everything carefully and completely understand the terms and conditions.

There may be areas for negotiation, so here are a few things to look out for:

Check details

Make sure the contract contains the key items that are critical to you, such as dates, meeting rooms, space, rates etc. This is particularly important if any extras have been included or you’ve been given a special rate, as the staff you contract with may no longer be there when the event takes place. It is best to have everything included rather than try to negotiate additional agreements later.

Cancellation schedule

Look at the cancellation schedule as the venue will want to levy a charge if the size of the event changes. Reduce your potential cancellation fees by confirming the minimum number of delegates, but try to book a larger room so you can increase the numbers if necessary. The cancellation schedule will probably include delegate numbers and cut-off dates and you may be able to negotiate these.

Contract changes

· You might receive a contract from the venue which has already been signed. If you change the contract and then return it, then this is a counteroffer not a binding contract. If changes are needed then ask for a revised contract to be issued or make sure the venue countersigns the amendments.

· Consider conditions that are important to you, but may not occur to the venue. For example, if you need a guarantee that your competitors are not holding a meeting in the venue at the same time, then include this in the contract.

Payment terms

· Check that you are happy with the payment terms and specify the items that you will pay for and when. State what expenses your organisation will accept and who can sign for them and make the venue responsible for charging any additional items directly to the delegates.

· Sign and return the contract promptly. It may seem attractive to delay signing to avoid cancellation charges, but you could lose the venue if someone else books it at the last minute, or they may not deliver the requirements you agreed verbally.

· Check your insurance as it is designed to avoid risk. Will it cover the cost of defending a claim, as well as any damages?

Resolving disputes

Disputes over contracts are time-consuming to resolve and can be costly, so the time spent getting the contract right in the first place will make life easier later. Whenever possible take advice before you sign and if you have a Legal Department, it may be advisable to ask them to review the contract or contact W42 Events for confidential help, advice and support.