A Brief Introduction About the Event Planner Contract
Parties, weddings, cocktails, birthday parties, etc. are just a few events that need event planning. Nowadays, it’s become prevalent to call event planners for the smallest of gathering so that they manage everything while the guests and hosts enjoy the occasion freely.
When a host or client takes the services of an event planner, a verbal agreement or oral contract doesn’t suffice. There must exist a written contract that specifies the roles and responsibilities of the event planner and the payment mode and information related to it. An agreement signed between a client and event planning company or business is known as Event Planner Contract.
A legally binding agreement makes sure that there are no fights, conflicts, or confusion between both parties. It often happens that two parties decide on the details of a critical event verbally, and later, one party backs out. There has to be a legal remedy for such a situation. A written agreement comes in the picture as ensuring legal solutions.
Another name of the agreement is the Event Planner Agreement.
Who Takes the Event Planner Contract? – People Involved
As discussed above, An Event Planner Contract is needed to reduce the complexity between an event planner company and the client. Both of these parties sign the agreement to protect themselves legally. For the success of an event planning company, it is vital to sign this agreement. Also, it specifies all the tasks or responsibilities of both parties. However, it is suggested that both parties first understand each other’s expectations verbally and then draft the agreement.
Purpose of the Event Planner Contract – Why Do You Need It?
The main purpose of an Event Planner Contract, like any other contract, is to eliminate confusion, misunderstanding, and disputes. Considering, nowadays, even a single negative review on the Internet can harm business. An Event Planner Agreement is used to specify terms of payment, terms of termination, roles, and responsibilities of the event planner company, terms of cancellation, governing laws, etc. An excellent event planning company is the one who realizes the importance of this crucial agreement and spends a good amount of time in drafting it.
The ramifications of not having an agreement can be costly not only for the wedding planner or event planners but for the client also.
Here are some more reasons why this contract is needed –
- To make sure that the event planner takes the client’s event seriously and doesn’t harm the proceedings by mere carelessness
- To eliminate the possibility of any harm done by planners or people related to the planner’s company
- To protect all the parties (client, planner, other parties such as musician, chefs, etc.)
- To specify the roles and responsibilities of all the parties involved
- To explain a dispute resolution
- To specify in what circumstances there can be termination
- To specify payment terms, methods and modes
- To specify all the important timelines
- To specify cancellation terms
- To mention all the services provided by the planner
Contents of the Event Planner Contract – Inclusions
As an event planner or as a client, you must think of all possible reasons for a misunderstanding or confusion. Anything that can become the reason for the event to go wrong must be added to the agreement. For the host, it is, of course, a matter of reputation among his or her guests, and for the planner, it is about protecting his or her business from a negative review online or a lawsuit.
An Event Planner Contract must have the necessary details of all the parties involved. Essential information as to names, addresses, phone numbers, etc. Further, it should add the details of all the services to be delivered by the planner. Next, it should include all the details regarding payment. The price structure, the price promised, mode of payment, and timelines of it – all these details should be outlined in the agreement very clearly.
If the prices are likely to change, then you must mention a clause about this; after all, there must be some vendors and the third party involved in managing the event. Nowadays, some event planners want the advance to be paid beforehand. You must add the details of the progress spent in the agreement. Also, if there is a deposit involved, mention the details of that as well.
There can come a situation when the client or the planner has to cancel or terminate the partnership or the event itself. The agreement must include both the cancellation terms and termination terms. There can also be an unforeseeable situation that can lead to cancellation; thus, a Force Majeure clause is also required.
Another significant addition in the agreement is the Indemnification Clause. Such a clause makes sure that, due to the negligence of your client or a third party, you (event planner) don’t have to bear the brunt.
How to Draft the Event Planner Contract?
To draft an Event Planner Contract, you must first understand the kind of services that will be provided by the planner. All planners are not the same. Hence, two contracts will also never be the same. The client/host needs to know about every service and its details. There are many services, such as food, DJ, floral, etc. Is your planner providing them all, or is he hiring another vendor for it? Before drafting the agreement, you must get clarity on all these aspects.
[ Also Read: Catering Contract ]
In addition to the services provided by your planner, you must also know about the services that are not provided. This should be done for more clarity. Further, negotiations must be made when it comes to the payment and its terms. In most cases, the planer demands an advance. As a client, you should make sure that you negotiate in person, but at the same time, don’t hamper the planner’s work ethics or style. Some planners need to advance money to arrange certain things for you.
You must also specify all the details such as date, time, mode of payment, etc. Before drafting the agreement, you must discuss all these details face to face, to avoid any confusion. A personal relationship always matters the most.
In the end, before signing the agreement, you must read about every clause carefully. Once I signed the agreement, there is no getting back. You will have to comply with every term of the written Event Planner Agreement. Thus, it would help if you were extremely cautious while drafting and signing it. It is undoubtedly one of the most important and piece of document.
Like any other agreement, this contract also involves negotiations. Both parties negotiate with each other before drafting the agreement to reach a best-suited business deal. For the host, it is about getting the maximum benefit from the minimum expense, and for the planner, it is about gaining a significant amount of profit from the business deal. If the planner doesn’t make enough profit, he won’t be able to pay his workers and vendors. However, it is suggested that both parties reach a middle ground after mutual understanding.
Benefits & Drawbacks of the Event Planner Contract
Event Planner Contract sets forward event planner’s duties and responsibilities. It is an essential piece of document for the Event Planner company as well as the client.
Here are some of the advantage of this contract in pointers –
- It specifies all the service promised by the planner so that there is no dispute regarding the delivery later on
- It makes sure that there are no hidden expenses beyond what is written in the agreement
- For the service provider, it helps in calculating the budget beforehand
- It ensures all the deliverables are delivered before the deadlines
- It protects both parties (the service provider and the client)
- It applies the governing laws thus making the business deal legally bound
- It outlines the dispute resolution methods
- It works as a constant reminder of the duties and responsibilities of both parties
- It makes sure there are no confusions and misunderstandings about duties, terms & conditions, dispute resolution methods, cancellation, etc
- It saves time unnecessarily spent on multiple communications
- It makes the event planner company look more professional
There are no disadvantages to an Event Planner Contract if both parties comply with the terms and conditions of the agreement. It binds the service provider for the better; thus, sometimes service providers may feel little bound and under pressure of the governing laws. However, it is good.
[Also Read: Wedding Planner Contract]
What Happens in Case of Violation?
Event planners never want to ruin the client’s special day. It can be an event of birthday, marriage, bachelors, anniversary, or anything else. They always want to comply with the deliverables promised in the agreement. However, there is always a possibility of dissatisfaction from the client’s side. The client can also cancel a few things last moment or terminate the event entirely. In such a case, the preparations done by the planner go in vain.
It is the responsibility of both parties to anticipate such outcomes and add a resolution in the agreement itself. By adding clauses in the agreement, both parties make sure that there are no verbal fights or arguments in the face of adversity. As per the agreement, the dispute must be resolved. In the case of a bigger breach or violation(1), both parties are well within their rights to take the help of the governing laws.
There are many portals online that can give you a template of Event Planner Contract. However, you must understand that there are different types of such agreements. Event Planner Contract examples are discussed above. No two Event Planner Contracts will be the same. You must choose the one suitable for you wisely.
On the other hand, event planning companies must understand the importance of a contract and how it protects them legally. They should inform all their vendors about the agreement so that everyone can comply with the duties, timelines, and deadlines. As a planner, it is your responsibility to make the client happy. A contract ensures precisely that.