The Top Ten Things I Learned the Hard Way…

to put in my contracts 

Daphne J. Meyers, CMMRed Barn Group

Today’s Presenters

• Daphne J. Meyers, CMM– Managing Partner, Red Barn Group

• Strategic Event Consultant• Adjunct Instructor, Minnesota State University - Moorhead

– Recovering Corporate Planner (Microsoft)– Meeting Professionals International

• Minnesota Chapter – Current Director/Incoming Vice President of Leadership Development

• International – Content Advisory Council

Things I am NOT~

• lawyers or paralegals

• an advocate of one-sided agreements

• proponents of “us v them” mentality

• interested in adversarial relationships

Today

• 10 things to include in your next contract

• Better understanding of business components of a hotel contact

• Contract language you can use in your next contract

What is a contract?

• An agreement between two or more competent parties in which an offer is made and accepted, and each party benefits.

• We need contracts to bind the other party to fulfill a promise, and what action can be taken if it is not.

• Like insurance – for good and BAD!

Contract Tip #1

• Start at the beginning – the Request (RFP)– Info about group/meeting needs– Specifications– Concessions – comps, internet, newspapers– Contract requirements of organization

• Risk/crisis clauses• Green clauses• Special “corporate” stuff (competitors, legal stuff

the lawyers say, construction, noise, attrition, special concessions)

Contract Tip #2John’s Golden Rule of Agreements

If 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., CHME

Meetings Industry Attorney

Contract Tip #3

• What is the value of this contract to EACH?

• Know your business and THEIR’s– Planner: What is at risk? What is expected

return? Why is the meeting happening?

– Supplier: What drives the business?

10 Things…

#10 Specific meeting room names with specific times

#10.1 I like to remove any language about hotel reserves the right to re-assign rooms.

#10.2 Indicate that detailed specifications will follow from planner as to room set-ups, # of people, menus

Date Time Room Name Description

December 31, 2008

12:01am – 11:59pm

Super Duper Ballroom

Set-up for Party

January 1, 2009

12:01am – 12:00pm

Super Duper Ballroom

New Year’s Eve Party

10 Things…

• #9 Specific Language for Sleeping Rooms

• Reservations• Listing in Hotel’s Computer “Group Name”• Type of rooms – suites, doubles, kings• When rates apply/don’t apply/cut-off dates• Always ask about honoring rates outside the dates!

• #9.1 Use specific dates on the calendar August 31, 2009 at 5:00pm CT vs.

30 days prior to meeting

10 Things…

• #8 Areas of “sensitivities”• Noise• Construction• Competitors• VIP needs• Data privacy• Food donations• ADA (accessibility) issues

10 Things…

#7 Additional charges/fees/taxes• newspapers/safe/resort fees/pool/spa• set-up fees• taxes • gratuities• overtime/changes• opening of outlets

10 Things…

#6 How to bill and get paid!

• master account needs

• treatment of comps/concessions

• timing of when bill reviewed, sent and to be paid to hotel

10 Things…

# 5 Flexibility• How can we make changes?• What constitutes a spec

change versus a contract change?

• Sliding scales

10 Things…

#4 What happens if…we CANCEL • cover both hotel and planner• sliding scales based on timing• damages clearly spelled out

10 Things…

#3 What happens if…we CAN’T• Force Majeure (improbable/inadvisable)• re-booking/re-sale options• CAUTION! We are at war!

10 Things…

#2 What happens if…there is ATTRITION

• Show the “math”– Sleeping rooms– Meeting space– Food Beverage minimums

• Cumulative? • Does it work out in each direction?

Planner AND Hotel• $$ Amounts spelled out

10 Things…

#1 If we still can’t agree, how do we resolve it.

I am a Hotel Sales Manager

Thank you!!