Five tips to negotiating a better contract

Negotiating a favorable contract for your event or convention has never been more important than in today’s economic environment. Whether you do the negotiating for your company or work with a meeting planner, here are five tips to help ensure that you negotiate a contract that achieves your goals and stays within your budget.

 

Negotiate on Your Terms. Just because the hotel or meeting venue presents you with their standard contract, you do not have to accept it. In fact, you should start your negotiation with your contract terms and work with the hotel to reach an agreement.

Leverage your Potential Business. If you plan several meetings over a period of time and use the same hotel chain, you can leverage your long-term spending when negotiating. If you do not have this advantage, working with a meeting planning company that plans many meetings, such as Hamilton Group Meeting Planners, can achieve the same result.

Negotiate on Every Point. Negotiating a favorable contract means finding a balance of the best terms for your specific situation. For example, if your sleeping room rates can be higher without impacting attendance, then you can negotiate for reduced meeting space rental or upgraded menus at no additional cost.

Find Savings for the Hotel. When you understand the hotel’s sources of revenue and costs, you will be able to negotiate a better contract for both parties. Also, ask what other resources and discounts the hotel can extend.

Protect your Financial Exposure. The majority of unpleasant budget surprises are found in the fine print of contract clauses. Hamilton Group Meeting Planners are experts in negotiating the fine print. Once you have negotiated the major aspects of your agreement, dedicate as much care to the liability clauses of the contract. Attrition clauses, cancellation clauses, food and beverage and ancillary revenue minimums, and other liability clauses can all increase your financial exposure.

 

If a contract is not negotiated fairly, it can cost you thousands of dollars. Protect your budget and the success of your event with thorough negotiations that specify each party’s responsibility should the unforeseen occur.

Need help negotiating or reviewing your next contract? Click here to contact us.

 

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