Things you should know before you sign the contract.
What do you need to know about contracts?
If you are planning
your own wedding or other special event you’ve probably discovered that you will need to hire certain professionals
for specific aspects of the event. This requires a lot of time and effort on
your part. Determining which services you’ll need, researching different
vendors, interviewing them to see if they can accommodate your needs and timeframe, etc.
This can be a very time consuming process however, the work is well worth it if you find the right vendors at the right
time, to do the right jobs at the right prices.
Once you’ve chosen
a professional and reliable Caterer, Florist, Photographer, DJs, Party Supply Rental Company, Event Venue, etc you’ll
want to retain their services for your special day. Most reputable companies
will ask you to sign a contact. This can be intimidating for most couples whose
only experiences with contracts are car loans and cell phone plans. The business
of Vendor Contracts can be made less frightening if you keep just a few simple concepts in mind. Here are some basic points to understand Vendor Contracts and questions to ask before you sign them.
Contract Basics
If you ask any two
people to describe the same movie the odds are good that they will have the same general description but the details will
be different. Sometimes people view the same situation from two very different
points of view. These different perspectives can often be the cause of confusion,
mistakes, and even conflict. Contracts are written to lessen the chance of this
from happening because a contract is a detailed agreement of services and/or products that will be provided to the client.
Think of it this
way, contracts are just statements about expectations – defining your expectations and their expectations about the
event and the products/services they are going to give you. The contract is created
to help prevent any confusion or misunderstandings; it basically will state what will happen, the day it will happen, the
time it will happen, where it will happen, and who will do what. The contracts
are for both your and the Vendors benefit. The Vendor can expect how much and
when to get paid; while the client can make sure their vision of what the Vendor will do for this is accurate and their expectations
will be met.
Formal and Informal contracts
There are two types
of contracts – formal and informal. Is a Formal contract more legally binding
than an Informal one? No, they can both be used to hold either party accountable for the product or service. Now you may ask, “so, why do some companies used the formal contract?” Formal contracts can be a little difficult to understand sometimes because it is write from a legal point
of view. Why use this language? The
truth of the Formal “Legalese” is just more “straight forward” and less subjective – telling
you what you get with no room for confusion. Some companies just want to play
it safe. Others will use informal to keep it simple – the bottom line is
you don’t need the formal language to state what you will do, when you will do it, where and for how much.
Now that we understand
what contracts are and the types of contracts Vendors may have it’s know time to review some of the things you need
to ask and make sure you are clear on before signing the contract. The following
are our “Simple Seven” things to ask your Vendor about before signing the contract. These are by no means the only questions you should have or things you should get clarity on when it comes
to your contract. Most people know what they want and who they want it. This is simply a few things people often forget about:
1. Clarify Expectations:
This is the part were you
both have a responsibility to make sure you are saying what you what. Have the
person creating the contract repeat in their own words what the contract is stating.
Ask them to go through the sequence of events and point out where this is stated in the contract. Make sure he/she understands your vision. Visions of events
can be different in the mind of the Bride, Groom, Client, etc and you being able to describe with words what you are envisioning
for your event will help the Vendor out tremendously.
2. Deposits and Fees:
The odds are good
that before this point you have discussed prices. Now is the time to ask for
a breakdown of costs so you can better understand what you are paying for. By
now you should have also addressed deposits. On average most Vendors will ask
for a 50% deposit upon signing a contract and the remaining balance is usually due anywhere from 60-30 days prior. This may vary depending on the vendor so confirm how much is due during signing and when the remainder
is due. Check to see what their policy is on payments. If you are putting together a special event for your company ask the Vendor your company can set up an
account with them. If you have an account they may allow you to provide them
payment the day of or bill after the event. Check to see if the contract has
a “Price Escalation Clause”. This used incase of unforeseen expenses
or additions you may add later as the event draws nearer. This cause should have
a ceiling of no more than 15% over the base price.
3. Before and After:
Verify when the Vendor
will arrive prior to the event and when they will leave. Ask them how much time
they will need to set-up before and breakdown afterwards. Make sure they know
when to start their service as apposed to when they will “show up”. Most
Vendors will quote an arrival time that should cover both their set-up time and some additional time just incase of unforeseen
events.
4. Event Insurance:
Locations such as Conference
Centers, Reception Halls, Hotels, etc should be able to offer you insurance
for the event. An insurance policy can be issued in case of unforeseen events,
damage, injuries, etc. For example, let’s say you are having an event and
it begins to rain. A guest runs to wave down a cab and slips over the 4”
tall heals of her shoes. Or perhaps you are only days away from your wedding
when you notice on the news that a hurricane is coming. Just like with home insurance
event ensure
5. Cancallation and Refunds
Besure to ask about
the vendor's cancallation and refund policy. Refunds policies are a show of trust from the Vendor to the Client. The majority of Vendors want to do business with you and will do their best to insure
they provide you with the service you require. In case of a circumstance in which
a refund may be necessary (ex: A product is discontinued, a company downsizing and/or closing, etc) you should not have to
loose out on the money you have already paid. If so some reason the Vendor is
unable to provide you with their service or product the contract should clearly outline the situations and manner in which
a refund would be given back to you.
Remember to monitor
the specific requirements and agreement details of each contract in order to manage the events and changes. These are only a few points to keep in mind while contracting a vendor.
Negotiating this and other aspects of an event coordinating can become more complicated depending on the needs and
type of event. If you are feeling overwhelmed you can consider hiring an event
planner to take on projects “ala carte” or the entire process.
To
learn about Vivid Expressions LLC’s Personalized Wedding and Event Planning Services please click here.
