Dispelling 5 Common Myths About DMC Event Contracts

By: Sean Kirkland , Director of Contract Administration & Partnerships

Today, we’re going to cover the most exciting topic in the events industry: Contracts! Ok, I know contracts aren’t the sexiest part of what we do. But they’re one of the most important aspects of partnering with a DMC, and getting them right every time is no small feat. When it comes to the purpose behind contracts and what should (or shouldn’t) be included in them, there are a lot of common misconceptions out there. So, let’s connect the dots before you sign on the dotted line.

Myth #1: DMC Contracts Begin and End with the Event

We encounter this frequently, particularly among organizations that are unfamiliar with working with a DMC. While your event or program is inevitably our collective focus, our services commence far before anyone walks in the door. At 360DG, we get to work ahead of the proposal stage with creative design and vendor sourcing and continue to support you through planning, permitting, logistical coordination, and event and supplier management. This means that cancellation clauses and the associated fees are often set well before your program kicks off. The extra time is well worth it to ensure you receive the kind of robust support a true DMC partner can provide.

Myth #2: Exercising Force Majeure Excuses a Party of Its Obligations

COVID brought force majeure into the limelight; however, it’s far from a novel concept. In fact, this contractual component originated in the 1800s. French for ‘Superior Strength, ‘ force majeure provides protections in the event that circumstances outside of either party’s control make it impossible to proceed in executing the contract, and it excuses the defaulting party from performing the impacted services. In theory, force majeure is helpful for everyone involved as it allows the DMC to protect the client’s investment. It also creates a clear jumping-off point in terms of rescheduling your program and getting things back on track. 

However, exercising a force majeure doesn’t wipe the slate clean. Should your DMC exercise force majeure for a specific program component (i.e. your venue is unavailable due to a fire or flood), it does not invalidate the event contract; they will still need to perform the remaining services. Similarly, in the event a planner exercises force majeure, it does not excuse their obligation to pay for work already performed or costs incurred on the planner’s behalf. We always have your back at 360DG and will work diligently to mitigate these costs.

Myth #3: Confidentiality Is Legal Fluff

As you embark on a new partnership, it’s inevitable that data, including Personally Identifiable Information (PII) such as full name, address, date of birth, and credit card information is shared electronically. To protect everyone involved, it’s important to address confidentiality concerns at the onset. While it’s very true that we’re all friends here, it’s crucial that everyone is thoughtful about what information is being shared and why. While your DMC may need a headcount for your upcoming program, they don’t need a spreadsheet with personal details about every attendee. Keep things simple and only send the minimum information that will achieve the desired goal.

However, confidentiality and security concerns don’t end there. It’s equally important that you and your attendees are protected during your event. A savvy DMC should advise its staff and vendors not to discuss the host organization or where or when the event will occur outside those who need to know. In the current political and social climate, the potential for activists to seek out and disrupt an event in person or via social media campaigns is a persistent threat. So, it’s important to be prepared.

Myth #4: Redlines Make Us See Red

In recent years, corporate procurement and risk management functions have become increasingly engaged in meeting and event management contracts. In fact, planners have begun apologizing to us for the amount of redlining we receive on contracts. You heard it here first — there’s nothing to be sorry for! At 360DG, we enthusiastically engage in this process because we want to ensure your concerns are addressed and that your stakeholders are comfortable (better yet, thrilled!) about working with us. All too often, the true challenge lies in the fact that risk management and procurement professionals don’t understand the role of the DMC. However, this is easily resolved with a phone call. We are able to quickly hash out and return a mutually acceptable contract to get our services locked down. After all, we’re all in this together.

Myth #5: DMC Contracts are Rinse and Repeat

While this may be true at other DMCs, it certainly isn’t the case at 360DG. We are uniquely positioned to understand how each and every decision within the contracting phase can impact our clients. When it comes to the event contracts phase, we take the same ‘built around you’ approach you know and love. Which means we heavily customize each contract based on your unique goals, needs, and priorities. We work to build a mutually beneficial foundation for our partnership by anticipating your future needs, growth potential, and more. Your DMC contract should set you up for success today, tomorrow, and in the years to come.

So, did I manage to make event contracts fascinating after all? I hope so. While contracts are certainly no laughing matter, with the right partners by your side they don’t need to be painful or overly complicated. We’re more than happy to walk you through any and all aspects of the contract process so you feel comfortable and prepared. Shoot me a message and take me up on it!

This article first appeared on 360DG.com.