{"id":18393,"date":"2020-04-14T07:00:49","date_gmt":"2020-04-14T12:00:49","guid":{"rendered":"https:\/\/www.qceventplanning.com\/blog\/?p=18393"},"modified":"2020-04-14T07:00:49","modified_gmt":"2020-04-14T12:00:49","slug":"the-importance-of-a-well-written-event-contract-in-a-time-of-crisis","status":"publish","type":"post","link":"https:\/\/www.qceventplanning.com\/blog\/2020\/04\/the-importance-of-a-well-written-event-contract-in-a-time-of-crisis","title":{"rendered":"The Importance of a Well-Written Event Contract in a Time of Crisis"},"content":{"rendered":"<p><em>Alyssa Perna has over a decade of event operations experience in leading multinational business-to-business conferences, festivals and trade shows, press conferences, large-scale fundraisers, complex social events, and more. She is the founder of <a href=\"http:\/\/www.experiencevents.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Experience Events<\/a>, as well as the Managing Director of <a href=\"https:\/\/www.ingenuitycleveland.org\/\" target=\"_blank\" rel=\"noopener noreferrer\">Ingenuity Cleveland<\/a>. She\u2019s also the lead instructor (and tutor!) of the\u00a0<a href=\"\/online-event-courses\/corporate-event-planning\/\" target=\"_blank\" rel=\"noopener noreferrer\">Corporate Event Planning Course<\/a>\u00a0at <a href=\"\/about-qc\/\" target=\"_blank\" rel=\"noopener noreferrer\">QC Event School<\/a>.<\/em><\/p>\n<p>The COVID-19 health crisis has brought about many challenges in the event planning industry. One of the biggest obstacles lately is knowing how to handle contractual event agreements during a time of crisis.<\/p>\n<p>In the best-case scenario, both parties will work together in unity. This way, you can outline a deal that will benefit everyone. But this won&#8217;t always be the case. When things don\u2019t go as smoothly as you\u2019d hope, it can become daunting and complicated to navigate.<\/p>\n<p>Whether you\u2019re a <a href=\"\/blog\/2019\/12\/the-difference-between-event-planning-and-event-management\/\" target=\"_blank\" rel=\"noopener noreferrer\">corporate event planner<\/a>, a <a href=\"\/online-event-courses\/event-planning\/\" target=\"_blank\" rel=\"noopener noreferrer\">party planner<\/a>, a <a href=\"\/online-event-courses\/wedding-planning\/\" target=\"_blank\" rel=\"noopener noreferrer\">wedding planner<\/a>, etc., the following applies to YOUR business! Because ultimately, determining the fate of all parties goes back to how well your legal agreement was written in the first place.<\/p>\n<p>As such, I will reflect on the importance of a <a href=\"\/blog\/2019\/11\/event-planner-contract-dos-and-donts\/\" target=\"_blank\" rel=\"noopener noreferrer\">well-written contract<\/a>, and why having one for <em>every <\/em>job is so critical within our industry.<\/p>\n<p><a href=\"https:\/\/www.qceventplanning.com\/blog\/wp-content\/uploads\/2020\/04\/Copy-of-Event-In-Post-Event-Logo-Overlay-135x135.png\"><img decoding=\"async\" class=\"alignnone size-full wp-image-18396\" src=\"https:\/\/www.qceventplanning.com\/blog\/wp-content\/uploads\/2020\/04\/Copy-of-Event-In-Post-Event-Logo-Overlay-135x135.png\" alt=\"\" \/><\/a><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.qceventplanning.com\/blog\/2020\/04\/the-importance-of-a-well-written-event-contract-in-a-time-of-crisis\/#What_is_a_Crisis\" >What is a Crisis?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.qceventplanning.com\/blog\/2020\/04\/the-importance-of-a-well-written-event-contract-in-a-time-of-crisis\/#Stages_of_a_Crisis\" >Stages of a Crisis<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.qceventplanning.com\/blog\/2020\/04\/the-importance-of-a-well-written-event-contract-in-a-time-of-crisis\/#Effective_Crisis_Communication\" >Effective Crisis Communication<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.qceventplanning.com\/blog\/2020\/04\/the-importance-of-a-well-written-event-contract-in-a-time-of-crisis\/#Navigating_a_Crisis\" >Navigating a Crisis<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.qceventplanning.com\/blog\/2020\/04\/the-importance-of-a-well-written-event-contract-in-a-time-of-crisis\/#Contract_Language\" >Contract Language<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.qceventplanning.com\/blog\/2020\/04\/the-importance-of-a-well-written-event-contract-in-a-time-of-crisis\/#In_Conclusion\" >In Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_a_Crisis\"><\/span>What is a Crisis?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A crisis is a series of events that leads to change. It can be brought on by:<\/p>\n<ul>\n<li>Instability in social affairs<\/li>\n<li>Economic difficulties<\/li>\n<li>Political issues<\/li>\n<li>International circumstances<\/li>\n<\/ul>\n<p>Alternately, it may be a troublesome, global situation like <a href=\"https:\/\/www.who.int\/emergencies\/diseases\/novel-coronavirus-2019\" target=\"_blank\" rel=\"noopener noreferrer\">COVID-19<\/a>. Either way, a crisis leads to a time of difficulty.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Stages_of_a_Crisis\"><\/span>Stages of a Crisis<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3>1) Pre-Crisis<\/h3>\n<p>During a pre-crisis, all parties monitor their risks and determine how to manage a potential crisis. Those involved with responding to the crisis will outline a clear Crisis Management Process.<\/p>\n<h3>2) Mid-Crisis<\/h3>\n<p>During the crisis stage, all information is analyzed for decision-making. If you\u2019re a <a href=\"\/blog\/2018\/07\/how-adding-corporate-event-planner-courses-to-your-resume-will-get-you-more-money\/\" target=\"_blank\" rel=\"noopener noreferrer\">corporate event planner<\/a>, a <a href=\"\/online-event-courses\/promotional-event-planning\/\" target=\"_blank\" rel=\"noopener noreferrer\">promotional event planner<\/a>, or a <a href=\"\/online-event-courses\/festivals-and-live-events\/\" target=\"_blank\" rel=\"noopener noreferrer\">festival planner<\/a>, crisis messaging will also need to be distributed to stakeholders.<\/p>\n<h3>3) Post-Crisis<\/h3>\n<p>During the post-crisis stage, these stakeholders must be followed-up with. If relevant to the type of event you\u2019re putting together, organizations will discuss next steps, as well as how to move forward once the damage has been assessed.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Effective_Crisis_Communication\"><\/span>Effective Crisis Communication<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When facing a crisis, effective communication is key! As the professional planner, there will be many people looking to you for guidance. You clients, vendors, suppliers, and venues are all examples of parties who will likely turn to you for answers.<\/p>\n<p>They\u2019ll want to know what they can expect to happen next, as it pertains to your agreement with them.<\/p>\n<p><a href=\"https:\/\/www.qceventplanning.com\/blog\/wp-content\/uploads\/2020\/04\/Copy-of-Event-In-Post-Event-Logo-Overlay-135x135-1.png\"><img decoding=\"async\" class=\"alignnone size-full wp-image-18397\" src=\"https:\/\/www.qceventplanning.com\/blog\/wp-content\/uploads\/2020\/04\/Copy-of-Event-In-Post-Event-Logo-Overlay-135x135-1.png\" alt=\"\" \/><\/a><\/p>\n<p>Specifically, these people will all want to understand the ramifications this crisis will have on the event. Ask yourself:<\/p>\n<ul>\n<li>How will your agreement with them be affected as a result?<\/li>\n<li>What are the next logical steps?<\/li>\n<li>Is there a timeline during which these steps will be taken?<\/li>\n<\/ul>\n<p>Below are some useful tips to help you prepare an effective Crisis Communication Plan for your business. This way, should an unforeseen crisis occur, you\u2019ll know how to handle it.<\/p>\n<ul>\n<li><strong>Define your audience<\/strong>.\n<ul>\n<li>These are all the people you will need to contact immediately, in the event of a crisis.<\/li>\n<li>This includes: clients, attendees, sponsors, speakers, vendors, contractors, the venue, etc.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Determine your key internal points of contact for each audience<\/strong>.\n<ul>\n<li>Identify who you\u2019ve been speaking with thus far for each audience, and ensure you have their contact information on-hand.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Identify your communication platforms<\/strong>.\n<ul>\n<li>This refers to how you\u2019ve been communicating with each audience, and how you would intend to reach out in the event of a crisis.<\/li>\n<li>Examples include: email, the company website, social media, etc.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Put together a communication plan and messaging. <\/strong>\n<ul>\n<li>Map out who you will contact (and in which order, if that helps), how you intend to contact them, and what you would say.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Manage media, and inquiries from stakeholders. <\/strong>\n<ul>\n<li>Media is likely being utilized to <a href=\"\/blog\/2018\/09\/how-to-use-social-media-to-engage-corporate-event-attendees\/\" target=\"_blank\" rel=\"noopener noreferrer\">market the event<\/a> to the masses.<\/li>\n<li>Update it often, so people know what\u2019s going on.<\/li>\n<li>If applicable, make sure you stay in touch with any and all stakeholders for the event. They must also be kept in the loop.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Navigating_a_Crisis\"><\/span>Navigating a Crisis<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Whether you work for a venue, or you\u2019re a planner who has signed a contract with <a href=\"\/blog\/2018\/07\/corporate-event-planning-course-sample-researching-venues\/\" target=\"_blank\" rel=\"noopener noreferrer\">a venue<\/a>, it\u2019s best for both parties to have open and honest communication regarding the event. Everyone needs to know how to proceed, and be on the same page.<\/p>\n<p><a href=\"https:\/\/www.qceventplanning.com\/blog\/wp-content\/uploads\/2020\/04\/Copy-of-Event-In-Post-Event-Logo-Overlay-135x135-4.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-18399 size-full\" src=\"https:\/\/www.qceventplanning.com\/blog\/wp-content\/uploads\/2020\/04\/Copy-of-Event-In-Post-Event-Logo-Overlay-135x135-4.png\" alt=\"\" width=\"672\" height=\"448\" srcset=\"https:\/\/www.qceventplanning.com\/blog\/wp-content\/uploads\/2020\/04\/Copy-of-Event-In-Post-Event-Logo-Overlay-135x135-4.png 672w, https:\/\/www.qceventplanning.com\/blog\/wp-content\/uploads\/2020\/04\/Copy-of-Event-In-Post-Event-Logo-Overlay-135x135-4-300x200.png 300w\" sizes=\"auto, (max-width: 672px) 100vw, 672px\" \/><\/a><\/p>\n<p>At this point during a crisis, contract terms are likely already being referenced. However, if all parties cannot come to an agreement, you\u2019ll find that these contract terms will become the first AND last line of defense.<\/p>\n<p>This is why it\u2019s of the utmost importance to have well-written, clear, and fair language in your agreement. It\u2019s meant to protect ALL parties involved during a crisis \u2013 including you and your business!<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Contract_Language\"><\/span>Contract Language<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As <a href=\"\/blog\/2020\/03\/the-job-description-of-an-event-planner\/\" target=\"_blank\" rel=\"noopener noreferrer\">professional planners<\/a>, what can we do to protect our events?<\/p>\n<p>There are a few key areas you must always cover when contracting events, venues, and partnerships. Likewise, these elements <em>must <\/em>be clearly laid out within your contract, and understood by all parties before anyone provides a signature.<\/p>\n<p>Here are some examples of what I\u2019m referring to\u2026<\/p>\n<h3>Deposits<\/h3>\n<p>A deposit is a partial, up-front payment. While it\u2019s typically given after the contract has been signed, it\u2019s <em>outlined <\/em>within the contract itself. This is so that the party paying the deposit understands \u2013 and legally agrees \u2013 to this obligation.<\/p>\n<p>A deposit is given as a form of security. It can come in many shapes and sizes. For instance, a deposit could outline a percentage of the total amount due (per your contract). It can also be an up-front lump sum, determined by the organization issuing the contract.<\/p>\n<h3>Cancellation Policies\/Clauses<\/h3>\n<p>In any event contract, a clear cancellation policy should be outlined. This cancellation policy should also contain its own set of <a href=\"\/blog\/2017\/09\/8-clauses-every-event-planning-contract-needs\/\" target=\"_blank\" rel=\"noopener noreferrer\">clauses<\/a>. Even if there is no cancellation permitted, it should always be in your contract regardless.<\/p>\n<p><a href=\"https:\/\/www.qceventplanning.com\/blog\/wp-content\/uploads\/2020\/04\/Copy-of-Event-In-Post-Event-Logo-Overlay-135x135-2.png\"><img loading=\"lazy\" decoding=\"async\" width=\"672\" height=\"448\" class=\"alignnone size-full wp-image-18400\" src=\"https:\/\/www.qceventplanning.com\/blog\/wp-content\/uploads\/2020\/04\/Copy-of-Event-In-Post-Event-Logo-Overlay-135x135-2.png\" alt=\"\" srcset=\"https:\/\/www.qceventplanning.com\/blog\/wp-content\/uploads\/2020\/04\/Copy-of-Event-In-Post-Event-Logo-Overlay-135x135-2.png 672w, https:\/\/www.qceventplanning.com\/blog\/wp-content\/uploads\/2020\/04\/Copy-of-Event-In-Post-Event-Logo-Overlay-135x135-2-300x200.png 300w\" sizes=\"auto, (max-width: 672px) 100vw, 672px\" \/><\/a><\/p>\n<p>Many agreements you\u2019ll come across in this industry contain a cancellation chart, or language, which outlines terms in the event that either party cancels. In many cases, this could be a flat fee for cancellation. In others, it may look like a chart, outlining a certain percentage due at the time of cancellation.<\/p>\n<p>In well-written event planner contracts, a <em>rebook<\/em> clause is also outlined. This would mean that a certain percentage of the cancellation fee can be used as a deposit towards a future event.<\/p>\n<h3>Force Majeure<\/h3>\n<p>Force majeure is an unforeseeable circumstance that prevents someone from fulfilling a contract. According to <a href=\"https:\/\/www.investopedia.com\/terms\/f\/forcemajeure.asp\" target=\"_blank\" rel=\"noopener noreferrer\">Investopedia<\/a>, this is a clause within a contract that completely removes a party\u2019s liability \u201cin the face of natural and\/or unavoidable catastrophes that interrupt the expected course of events, and restrict participants from fulfilling obligations\u201d.<\/p>\n<p>All parties signing an event contract should aim to have a mutual force majeure clause in their agreement. This will ensure that everyone is protected from catastrophes beyond their control, so disastrous consequences can be avoided.<\/p>\n<h3>Indemnification<\/h3>\n<p>Indemnity is a contractual obligation that \u201crequires one party to <a href=\"https:\/\/en.wikipedia.org\/wiki\/Indemnity\" target=\"_blank\" rel=\"noopener noreferrer\">compensate the loss incurred to the other party<\/a>, due to the acts of the indemnitor or any other party\u201d.<\/p>\n<p>For example, let\u2019s say that a guest is injured during an event. Regardless of who is at fault (i.e. the venue, the event host(s), the attendee themselves, or any other party), the loss\/damage sits where it falls.<\/p>\n<p><a href=\"https:\/\/www.qceventplanning.com\/blog\/wp-content\/uploads\/2020\/04\/Copy-of-Event-In-Post-Event-Logo-Overlay-135x135-3.png\"><img loading=\"lazy\" decoding=\"async\" width=\"672\" height=\"448\" class=\"alignnone size-full wp-image-18401\" src=\"https:\/\/www.qceventplanning.com\/blog\/wp-content\/uploads\/2020\/04\/Copy-of-Event-In-Post-Event-Logo-Overlay-135x135-3.png\" alt=\"\" srcset=\"https:\/\/www.qceventplanning.com\/blog\/wp-content\/uploads\/2020\/04\/Copy-of-Event-In-Post-Event-Logo-Overlay-135x135-3.png 672w, https:\/\/www.qceventplanning.com\/blog\/wp-content\/uploads\/2020\/04\/Copy-of-Event-In-Post-Event-Logo-Overlay-135x135-3-300x200.png 300w\" sizes=\"auto, (max-width: 672px) 100vw, 672px\" \/><\/a><\/p>\n<p>That is to say: because one party agreed to be the indemnitor, they are then legally obligated to recoup any and all costs pertaining to the incident in question. As such, the other party will be indemnified &#8211; or excused &#8211; from suffering the financial consequences of this occurrence.<\/p>\n<h3>Signed Contract<\/h3>\n<p>By far, the most important part of any contract is making sure that it is <em>signed<\/em>!\u00a0 Without a signed contract, you have no agreement in the first place.<\/p>\n<p>As a rule of thumb, NEVER do work for a client, vendor, venue, or any other party until the contract has been signed by all those involved. Otherwise, you could be putting your business at risk!<\/p>\n<h2><span class=\"ez-toc-section\" id=\"In_Conclusion\"><\/span>In Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>During a crisis, you need to think ahead. Have a game plan ready for how you intend to handle situations that have been impacted by these circumstances. In addition to all this, always have a clear communication plan in place.<\/p>\n<p>If you ever need to navigate a crisis, remember to reference contractual agreements. Try your hardest to work in partnership with all parties involved, so you can come up with a mutually acceptable agreement on how to move forward.<\/p>\n<p>As you can imagine, due to recent world events, the event industry will be <a href=\"\/blog\/2020\/03\/how-the-coronavirus-outbreak-is-affecting-the-event-planning-industry-part-2\/\" target=\"_blank\" rel=\"noopener noreferrer\">working hard<\/a> to modify contract language, in order to protect themselves during a disaster. It\u2019s in the best interest of you and your event planning business to do the same!<\/p>\n<p>That way, going forward, you\u2019ll be prepared for anything!<\/p>\n<h4><strong>Interested in becoming a corporate event planner? Enroll in QC\u2019s leading online <a href=\"\/online-event-courses\/corporate-event-planning\/\" target=\"_blank\" rel=\"noopener noreferrer\">Corporate Event Planning Course<\/a>, and study under Alyssa\u2019s expertise! <\/strong><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>Alyssa Perna has over a decade of event operations experience in leading multinational business-to-business conferences, festivals and trade shows, press conferences, large-scale fundraisers, complex social events, and more. She is the founder of Experience Events, as well as the Managing Director of Ingenuity Cleveland. She\u2019s also the lead instructor (and tutor!) of the\u00a0Corporate Event Planning [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":19054,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[2,9,11],"tags":[],"ppma_author":[342],"class_list":["post-18393","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-from-the-experts","category-career"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Importance of a Well-Written Event Contract in a Time of Crisis - Pointers for Planners<\/title>\n<meta name=\"description\" content=\"QC Event tutor and corporate event planner, Alyssa Perna, outlines the importance of a strong event contract - and cancellation policy - during a crisis!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.qceventplanning.com\/blog\/2020\/04\/the-importance-of-a-well-written-event-contract-in-a-time-of-crisis\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Importance of a Well-Written Event Contract in a Time of Crisis\" \/>\n<meta property=\"og:description\" content=\"QC Event tutor and corporate event planner, Alyssa Perna, outlines the importance of a strong event contract - 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