What are the best practices for ensuring a fair and reasonable payment schedule in an event contract?

Milestone Payments: If the event planning process involves several stages (e.g., planning, execution, post-event activities), structure payments to coincide with the completion of these milestones. This ensures that the service provider is compensated as they reach critical points in the event planning process.

From the exhibit manager perspective it is important for me to point out due dates, remind and enforce if not paid. I try to remind in several ways throughout the year by email from me, sharing rules and sending newsletters with to do lists. I realize my show is important to me but one of many for my exhibitors.

Les meilleures pratiques restent les prérequis à l'établissement d'un échéancier. L'on s'évite des maux de tête et des frustrations inutiles. - Exigez un paiement partiel immédiat même d’un faible montant pour preuve de la bonne foi de votre client, - Raccourcissez au maximum la durée de l’échéancier, - Confirmez l’accord par un document écrit signé par les deux parties qui aura la valeur d'une reconnaissance de dette si vous deviez mener ultérieurement une action en justice pour vous faire payer, ( l'on a tendance à négliger cette alternative ) Avoir une telle démarche vous donne de la crédibilité et permet également que l'on vous prenne au sérieux même si le client est un proche.

It has been my experience to have the event prepaid or fulfilled as event starts. Most event centers are prepaid and usually will need negotiated agreement terms if any form of delay is requested.The contract will have all items such as price, date of use alone with the associated cost ,security, concession, and microphone use etc. included..

Before went in and meet with client or supplier... i always do a background check about their previous experience with suppliers i know or hotels / restaurant they used . 50% upon sign contract and 50% after the event is a common practice in Malaysia

In my experience, and this isn't a cheap tactic, it's worth consistently mentioning and clarifying the payment structure, times, and clauses. Saying things like "And to review once more, our payment schedule strictly adheres to 'x' schedule and is subject to 'x' percentage increase when considered late. To consistently and subtly put these stipulations in peoples heads helps them remember but also know how on top of it you are and the importance in forging a healthy working relationship going forward.

A payment schedule should also include items that the client will exclude. This might seem obvious, but I once was contracted to run a large drinks reception for a US university. Now, the clue is in the title - "drinks". I actually took on all the up front payments for the venue and the catering. Imagine my horror when I presented my invoice after a hugely successful event in a very prestigious venue and the clerk in the President's office said "it is our policy not to pay for any alcohol". Cue, long and difficult negotiations. It was a tough lesson to learn.

Have a safe and clear contractual arrangement in case of potential cancellations due to Pandemic or illness or situations beyond your cobtrol