The Contract: Understanding the ins and outs of Vendor Contracts
As always, a special thanks to Andrew Jorden for your amazing editing.
So you passed the Bar right? No? Of course not, but this month’s blog hopefully will make you feel less like you need a law degree to understand what you are reading. Every professional vendor you work with should have a contract, some being short and to the point, and others being pages long with a lot of legal jargon. Contracts are super important and are there to protect everyone involved, and if someone is offering you services without some kind of contract…big RED FLAG.
I’m a firm believer that even if it’s a friend offering to bake your cake, you should have something written down. I know that sounds harsh, but there are a staggering amount of horror stories out there of people being ghosted by a sketchy vendor after paying the full amount, or having a major falling out with a friend who offered to do something for the event a week before the wedding.
As you navigate through planning, you will come across a bunch of contracts and every single one will be different. I want to give you some basics to look for that every contract should have and understand some aspects that can be confusing.
First thing first, please actually read the contract. This isn’t the terms and conditions of a new subscription. I know, it’s so boring, but it will save you in the long run. Imagine you have always dreamed of having a Mariachi band at your cocktail hour. You found the perfect venue and you sign without reading the contract and make all of the plans for the band, and then at your venue walkthrough a few weeks before the date, boom you’re told you can’t have the band because live music isn’t allowed. Now you're heart-broken and out of the money you laid out for the band. All of that could have been avoided if you read the contract.
Almost all of the contracts I’ve read have clauses for a reason. Most vendors start with a basic contract and then add things to it after a conversation or situation they didn’t consider. An example, when I worked for the venue we ended up adding a clause stating you need to have a day of coordinator at your event, because we had multiple events where there wasn’t one, and the day ended up super chaotic. One memorable event was a group that didn’t have a coordinator to keep them on time and their ceremony was an hour late meaning their dinner was an hour late making the food not as good as it could have been when fresh. They gave the venue a 1 star review because their whole day was tainted because of their lack of preparedness. Hence, now they require a day of coordinator.
Because every contract is different, it may be a little hard to know what should be in a contract. If this is the first event you do like that then it’s probably the first time you are reviewing these types of contracts. Let's look at the “Big 4” when reading contracts.
The basics: Who, What, Where, and When.
Who is the contract between? When you are adding people to the contract, normally that will be who is the main contact for that vendor. Be sure to assign who is allowed to make changes to the service/product so you don’t have a random family member or friend trying to make decisions for you that you don’t want.
What is the product or service included, and what are the detailed expectations of all parties involved? A great example of this is catering contracts. What is included in the menu, will they have their own serving utensils, are they full service, and does that include bussing tables. Also do you need to bring anything for them like ice? All good things that need to be addressed.
Where is the event and/or where is the service taking place? Is your vendor coming to the venue to do a service, or make a delivery, or are you picking things up? Are there specific delivery times/fees?
When is this all happening? Having a detailed timeline and knowing how long you have each vendor for, and how long setup/breakdown will take helps ensure you are getting what you paid for. If they are just delivering, what time are they arriving, are they providing any set-up, and will they be coming back to pick up anything?
The “Fine Print”
Next thing you should review will be the “fine print” like cancellation policies, requirements, what’s allowed/not allowed, liabilities, event insurance, and the “Acts of God” clause. This will be the nitty gritty details, like can I use real candles on the rented linen, do I get a refund if I cancel, am I on the hook for the whole total if I cancel after a certain point? Is there a fine to reschedule, and what happens if we have another Covid shutdown? Most venues require event insurance, and banquet permits. Also most vendors have “Act of God” clauses saying they aren’t required to refund you anything if things like natural disasters, and major illnesses out of anyone's control happen. Be sure to review these in detail. No one wants to cancel their events, but life happens and knowing what is happening in those cases will save time, energy, and sometimes money.
Money Talks
Money is always a hot button and you want a contract with a clear outline of what you are paying for and when you need to pay by. Things you need as part of the outline is the amount due, the payment plan, additional miscellaneous fees, and what is and isn’t refundable. Look out for whether taxes and service charges are included or will be added later on the invoice.
Red Flags
Keeping an eye out for red flags can be a little bit like a scavenger hunt, but it’s important. Vague language like “standard service” but no explanation what the standard service is. Is it missing any of the above information? Does the contract give you an exit strategy like a cancellation policy? How about back up plans? Does that outdoor venue contract say what the back up plan is if it rains or is that information missing? One other red flag that I find, is defensive, negative, and combative reactions to questions you have for the contract. Follow your gut. If something feels sketchy, ask about it or ask a friend, family member, or even a lawyer to review it and see what they think.
Remember that a contract is an agreement between two or more parties. Key word being agreement. You should remember that you can ask questions, and ask for it in writing. The contract is a reflection of the conversation and negotiation, and it’s there to protect the vendor and you. No one wants to have to go to small claims court over a misunderstanding of a contract, and even more you don’t want your beautiful day clouded by a negative interaction with a vendor because you didn’t read the contract. Do your due diligence and advocate for yourself.
Personally, I love having these conversations with couples so that I know I am providing the best service I can for them, and if I’m not the best fit for a couple then steering them in the right direction is my idea of the best business I can do.
I would love your questions about contracts in the comments. Also let me know if there is a topic you would like me to explore in the future. Next month I plan to give you tips on building a mood board for your day.