Meeting Planners’ Favorite Contract Clauses for Avoiding Surprise Costs

As one industry lawyer once put it, “You don't have contracts for when everything goes perfectly. You have contracts for when things don't go exactly according to plan.”

Contracts are a planner’s first line of defense, and the right clauses will set you up for success every time.

Sure, the vast majority of clauses are the same for every event. But that doesn’t mean you don’t have to still pay attention to every excruciating detail. It’s important to be on your guard and dictate the terms you want up front, realizing that some hotels will push back.

During a recent Skift Meetings webinar where planners shared their best cost-cutting ideas, we decided to crowdsource favorite contract clauses covering the various aspects of events.

Rates

“Supplier cannot increase any published or unpublished rate once the contract is executed, regardless of market fluctuations or staffing shortages.”

“If the hotel offers a lower public rate, they must match it for your block and credit it toward your pick-up.”

Setup

“Vendors must disclose all categories of labor (regular, overtime, double-time, holiday, union differentials, minimum calls) in writing and the planner’s approval is required before applying any premium labor.”

“Hotel warrants that all event spaces, including meeting rooms, ballrooms, exhibit areas, and any designated setup areas, shall be fully prepared and in the agreed-upon configuration no later than [X] hours prior to the Event start time (with [X] determined based on event size and complexity as follows: small rooms 2 hours, medium 4 hours, large or multi-room events 6–12 hours). “Prepared” includes all tables, chairs, signage, audio-visual equipment, and other items specified in the Event Order or contract. Should Hotel fail to meet this requirement, Group shall be entitled to immediate remedies, including but not limited to financial compensation, alternative setup arrangements, or the right to terminate the contract without penalty.”

“All drayage, material-handling, receiving, storage, and overtime freight fees must be disclosed pre-contract. Anything not disclosed is not billable.

Supplier must present a change-order form detailing cost, fees, labor impacts, and timelines; client must approve in writing before work begins.”

“Delays caused by venue operations or other groups do not create additional charges for the client.”

Hidden Fees

“Service charges, surcharges, resort fees, administrative fees, “coordination fees,” environmental fees, urban impact fees, and “energy recovery charges” must be disclosed in writing pre-contract; anything not listed is not billable.”

“Unless expressly stated in this Agreement, the Hotel shall not impose any additional fees, surcharges, or costs related to the Event, its attendees, or associated services. Any charges not specified herein shall be deemed waived and unenforceable.”

"There will not be any additional charges incurred by Group or its attendees for work performed, or for services or items provided by Hotel, unless Hotel first gives a quote for the work, service or item, and obtains prior written permission from an authorized representative of Group. Additionally, Group and its attendees are exempt from any Hotel imposed resort, facility, or service fees not currently in place. All service charges must be guaranteed at time of contract. The phrase “without liability” wherever used in this Agreement shall be deemed to include a refund by the Hotel of all deposits and prepayments made."

Vendors/Sponsors

“Client may source AV services independently without penalty, provided safety and compliance standards are met.”

“If the venue or vendor procures rentals, furniture, décor, or third-party gear on your behalf, all costs must reflect the real sub-vendor invoice with no markup unless explicitly agreed upon.”

“If sponsors are bringing activations, venue cannot charge ‘activation fees’ or “marketing display fees” unless disclosed and capped.” (Also covers content capture, filming fees, rooftop fees, branding surfaces.)

“Venue must allow outside vendors without ‘access fees,’ ‘supervision fees,’ or ‘preferred list penalties,’ unless it’s for safety/compliance. If a fee exists, it must be disclosed and capped.”

Security

“All required security posts, bag checks, EMT coverage, and traffic control must be disclosed pre-contract. Anything mandated after signing is absorbed by the venue unless mutually agreed.”

“Hotel shall maintain appropriate administrative, technical, and physical safeguards to protect the confidentiality and integrity of all attendee data provided by the Group. In the event of any actual or suspected data breach, cyberattack, or unauthorized access affecting the Group’s data, Hotel shall notify Group within 24 hours of discovery and cooperate fully in remediation and mitigation efforts.”

Outages

“Hotel shall maintain all elevators, escalators, and critical equipment in working order during Event dates. In the event of an unplanned outage that materially affects Event operations, Hotel shall provide appropriate remedies, including but not limited to additional staff support, alternative transportation of attendees or equipment, or financial compensation.”

F&B 

“Group agrees to a minimum Food and Beverage expenditure of $_____.  If Group exercises the rooms attrition without penalty clause, the food and beverage commitment will be reduced by an equivalent percentage.”

“Facility will attach copies of its banquet menus to this contract. Should menus or pricing change prior to the date of the event, Group will not be asked to pay for more than a 3% increase over the attached menu pricing.”

Frustration of Purpose

“The stated purpose of the meeting is no longer viable, and as such the meeting will need to be reformatted. In the event the Group decides to hold its Event despite such circumstances, the Hotel shall waive any fees related to reduced-sized Event (including any room and food and beverage attrition fees and any function space rental fees) and shall offer the Group any lower room rate offered to guests during the contracted dates.”

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Please consult with an attorney to draft a contract that is legally binding and appropriate for your specific needs.