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The Top 10 Things I Learned the Hard Way… to Put in My Contracts
Daphne J. Meyers, CMMRed Barn Group
Things I AM~ Daphne J. Meyers, CMM
Managing Partner, Red Barn Group Strategic Event Consultant/Speaker Adjunct Instructor, Minnesota State University – Moorhead
Recovering Corporate Planner (Microsoft) Meeting Professionals International
Minnesota Chapter – Vice President of Leadership Development
Platinum Series Speaker Certified Global Trainer and Member of Senior Cadre
Things I am NOT~ Lawyer or paralegal Advocate of one-sided agreements OR
interested in adversarial relationships Canadian
What is a contract? Agreement between two or more
competent parties Offer is made and accepted Each party benefits Bind each party to promise – and action
to take if promise not met Like insurance – for both good and BAD!
Three Tips
Contract Tip #1 Start at the beginning –
the Request (RFP) Info about group/meeting needs Specifications Concessions – comps, internet, newspapers Contract requirements of organization
Stuff the lawyers want Deal-breakers
Contract Tip #2John’s Golden Rule of AgreementsIf you ask for something from the other side
before the contract is signed it's called ”Negotiating“
If you ask the other side for something after the contract is signed it's called ”Begging”
John Foster, Esq., CHMEMeetings Industry Attorney
Contract Tip #3 What is the value of this contract
to EACH?
Understand the business of EACH Planner: Why are we having this meeting
happening? What is at risk? What is expected return?
Supplier: What drives the business?
10 Things…
”We aren’t holding the room for you then.”# 10 Specific meeting room names with
specific times
# 10.1 modify language about hotel reserves the right to re-assign rooms
Date Time Room Name Description
April 14, 2010 12:00pm – 5:00pm
Super Duper Ballroom
Set-up for Meeting
April 15, 2010 8:00am – 5:00pm
Super Duper Ballroom
All Day Meeting
”I called and the hotel says the block is gone.”# 9 Sleeping Rooms
reservation method listing in hotel’s computer for “Group Name” type of rooms – suites, doubles, kings when rates apply/don’t apply/cut-off ask about honoring rates outside the dates use specific dates and times –
August 31, 2010 at 5:00pm ET vs. 30 days prior to meeting
“Oracle is also in house – heard of them?”
# 8 Areas of “sensitivity” noise construction competitors VIP needs data privacy food donations accessibility issues
“You may load in yourself, but the freight elevator is union.”# 7 Additional charges/fees/taxes
newspapers/safe/resort fees/pool/spa set-up fees taxes gratuities overtime staffing
“When I opened the mail today, I discovered we have an accruing finance charge on a $100,000 bill.”
# 6 Billing master account breakdowns treatment of comps/concessions timing of bill review vs. payment date
“You can do that, but it is not in your contract.”
# 5 Spec change vs. contract change
“Congratulations – consider yourself acquired.”
# 4 What happens if…we CANCEL covers both supplier and planner sliding scales based on timing damages clearly spelled out
“Did someone say flood, flu or some other sign of the apocalypse.”
# 3 What happens if…we CAN’T Force Majeure (improbable/inadvisable) re-booking/re-sale options CAUTION! There is a war going on!
“You don’t have an attrition clause in your contract.”
# 2 What happens if…there is ATTRITION
show the “math” ($$ spelled out) sleeping rooms (cumulative) meeting space food & beverage minimums
Post-event list audit
“Who would have thought this could happen?”
# 1 We are not fortune-tellers, or are we?
In Summary…1) Start at the beginning – in the Request
(RFP) details, details, details special requirements of your organization
2) John Foster’s Golden Rule prior to contract = Negotiating after contract = Begging
3) Know THE business
