From Houston Business Journal

When using a special event producer to assemble an event -- whether it's a corporate convention or a fundraiser for charity -- contracts should be carefully scrutinized. Clare Jackson, president and CEO of Sullivan Group, recommends sitting down with the event specialist or subcontractor and reading through the agreement together. The documents should address several key points. If those possibilities are not spelled out in a contract, problems could arise down the road, she says.

KEY POINTS
Scope of Work. The party concept as well as details should be defined. Frequently an event timeline is included, which reflects set-up, event execution, programs, closing the event and clean up. Clients should look for details in this section, feeling confident that everything discussed with the specialist has been included.

Change Orders. Making additions to the event concept, from ordering extra floral arrangements to adding special registration tables for VIPs, happen frequently. While these changes do not require reissuing the contract, a formal document or procedure for making changes should be in place.

Guarantees. The cost, set-up and success of an event is directly related to planning for the appropriate number of people. A "final guarantee" is the point when the client can provide the event specialist with a definitive number of guests. This guarantee is usually required 48 hours -- two working days -- prior to the event. The final guarantee is an area where the event specialist can provide the client with unparalled expertise because they are experts at reviewing potential event attendance and managing the final guarantee to the client's advantage. The final guarantee directly impacts virtually every aspect of the event, most significantly the bottom line.

Licenses. Caterers are required to have food permits and licenses and beverage licenses. Event specialists or other subcontractors who provide lighting or sound systems may have licensed electricians on their staff.

Insurance. Always ask what insurance an event specialist carries, and discuss the client company's insurance as well. Some subcontractors -- for example, caterers and audio visual companies -- may carry workers' compensation, but many times they do not. A qualified event producer can explain and manage the host's liability. Clients have every right to ask their event specialist to protect them by hiring licensed and insured vendors. Also, the amount of coverage the event specialist carriers should be compared to the scope of work.

Deposits/Payment Terms. Each event specialist and subcontractor has its own payment policies.

It is imperative to make certain when deposits and payments are due and what forms of payment are accepted. If the terms and conditions of payment seem unclear, clients need to ask the event specialist to clarify.

CRISIS
Even the most carefully planned event is subject to crisis, Jackson notes. Problems, both major and minor, can pop up despite the best efforts on the part of event specialists and clients. What if it rains? In the world of events, this may well be the most frequently asked question. A rain contingency plan should always be in place, including a timeline clearly stating when the event manager will implement the rain plan and outlining the role of the client and event specialist in this scenario. What if the speaker is late? Often times nationally recognized speakers fly in within hours of an event and depart as soon as it's over. Event specialists should be able to offer ground transportation to best assure prompt arrival and a full briefing so the VIPs know their place on the program.

Event specialists and clients should also work together to develop a contingency plan in the event the speaker does not arrive. What if there is a disaster? An electricity failure, a fire in the kitchen or a hurricane blows in and no one attends? Bearing in mind that even the most experienced and qualified contractors can't control or predict acts of nature, contracts and working agreements should address the consequences. Terms of a contract, especially financial ramifications, should be outlined in the events of a crisis.

BACKGROUND
Event planners should provide a list of clients. Potential clients can make a note of the type of companies on the list and the types of services the event specialist provided. Sullivan also encourages potential clients to ask for references as well. Clients also have the right to know how long an event specialist has been in the business and what types of events that manager ordinarily handles for clients, she says.

Last but not least, clients should ask who from the event planning company will be handling and supervising the event.