The Top 10 Things I Learned the Hard Way… to Put in My Contracts Daphne J. Meyers, CMM Red Barn Group

Things I AM~  Daphne J. Meyers, CMM Managing Partner, Red Barn Group  Strategic Event Consultant/Speaker  Adjunct Instructor, Minnesota State University – Moorhead Recovering Corporate Planner (Microsoft) Meeting Professionals International  Minnesota Chapter – Vice President of Leadership Development  Platinum Series Speaker  Certified Global Trainer and Member of Senior Cadre

Things I am NOT~  Lawyer or paralegal  Advocate of one-sided agreements OR interested in adversarial relationships  Canadian

What is a contract?  Agreement between two or more competent parties  Offer is made and accepted  Each party benefits  Bind each party to promise – and action to take if promise not met  Like insurance – for both good and BAD!

Three Tips

Contract Tip #1  Start at the beginning – the Request (RFP) Info about group/meeting needs Specifications Concessions – comps, internet, newspapers Contract requirements of organization  Stuff the lawyers want  Deal-breakers

Contract Tip #2 John’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?  Understand the business of EACH Planner: Why are we having this meeting happening? What is at risk? What is expected return? Supplier: What drives the business?

10 Things…

”We aren’t holding the room for you then.” # 10Specific meeting room names with specific times # 10.1 modify language about hotel reserves the right to re-assign rooms DateTimeRoom NameDescription April 14, :00pm – 5:00pm Super Duper Ballroom Set-up for Meeting April 15, 20108:00am – 5:00pm Super Duper Ballroom All Day Meeting

”I called and the hotel says the block is gone.” # 9 Sleeping Rooms  reservation method  listing in hotel’s computer for “Group Name”  type of rooms – suites, doubles, kings  when rates apply/don’t apply/cut-off  ask about honoring rates outside the dates  use specific dates and times – August 31, 2010 at 5:00pm ET vs. 30 days prior to meeting

“Oracle is also in house – heard of them?” # 8Areas of “sensitivity”  noise  construction  competitors  VIP needs  data privacy  food donations  accessibility issues

“You may load in yourself, but the freight elevator is union.” # 7 Additional charges/fees/taxes  newspapers/safe/resort fees/pool/spa  set-up fees  taxes  gratuities  overtime  staffing

“When I opened the mail today, I discovered we have an accruing finance charge on a $100,000 bill.” # 6Billing  master account breakdowns  treatment of comps/concessions  timing of bill review vs. payment date

“You can do that, but it is not in your contract.” # 5Spec change vs. contract change

“Congratulations – consider yourself acquired.” # 4What happens if…we CANCEL  covers both supplier and planner  sliding scales based on timing  damages clearly spelled out

“Did someone say flood, flu or some other sign of the apocalypse.” # 3What happens if…we CAN’T  Force Majeure (improbable/inadvisable)  re-booking/re-sale options  CAUTION! There is a war going on!

“You don’t have an attrition clause in your contract.” # 2What happens if…there is ATTRITION  show the “math” ($$ spelled out) sleeping rooms (cumulative) meeting space food & beverage minimums  Post-event list audit

“Who would have thought this could happen?” # 1We are not fortune-tellers, or are we?

In Summary… 1) Start at the beginning – in the Request (RFP)  details, details, details  special requirements of your organization 2) John Foster’s Golden Rule  prior to contract = Negotiating  after contract = Begging 3) Know THE business

Thank you!!