Event Technology Contracting Best Practices - Service Solutions Audio Visual

Introduction

At Service Solutions, we understand the challenges faced by event professionals and venues as we navigate them daily. Our primary responsibility is to exceed customer satisfaction from both service and technology perspectives. However, there are instances where we encounter clients with unique planning requirements beyond our control. Our objective is to provide essential knowledge on executing events when confronted with such challenges. Based on our experience, every event can be successfully managed, provided that some critical factors, often overlooked by planners and venues, are taken into consideration.

Importance of Effective AV Technology in Events

After consulting with many event professionals, it has been observed that event technology services are often addressed last, after selecting the venue, booking catering, choosing décor, and finalizing the floor plan. This results in limited and inflexible budget allocation for this essential component of an event. For example, if some attendees do not like the food or find the venue location inconvenient, they may rate the event lower on a satisfaction survey or mention it to peers. However, inadequate event technology can lead to presentation messages not being adequately heard, seen, or understood by attendees, undermining the purpose of the event. Effective communication of the event’s ideas, topics, and overall messaging should be a priority. It is common to see planners and venues allocate 80% or more of their budget to Food & Beverage, décor, and entertainment, while only minimally investing in event technology. Clients who prioritize proper communication tools tend to achieve greater success with their events.

Overview of Content: Best Practices, Challenges, and Pitfalls

In this article, we will examine the best practices for conducting independent research and establishing a provider selection process. We will discuss how to effectively negotiate contracts and emphasize the importance of collaboration with providers to enhance communication. Additionally, we will address the common challenges related to technical issues that impact events and the prevalent concern of budget constraints in the current environment. Finally, we will outline major pitfalls to avoid during the contracting phase through to event execution. These pitfalls include neglecting contract details, inadequate planning or reliance on a single plan, and the critical issue of miscommunication.

Best Practices

Research and Selection

Understanding Event Requirements

There is a common saying that we have two ears and one mouth for a reason, implying that we should listen more than we speak. This principle is particularly relevant when understanding a client’s vision for their event. Planners, venues, and other providers may sometimes interrupt a client or impose their opinions on what might work best. While providers have expertise and a responsibility to ensure the event’s success, it is important not to prematurely interrupt the client’s communication during the initial discovery phase. Doing so can result in missing critical details that are essential for defining a successful event from the client’s perspective. Understanding the event requirements from the client’s viewpoint before forming your own ensures that the path forward becomes clearer and allows for correct decision-making.

Choosing the Right AV Provider

Choosing the right AV provider for an event often depends on the market and the lead time available for planning. The number of viable options may vary greatly. Lead time is crucial, especially for events with lower attendance counts or overall budgets, which are frequently not planned as far in advance as they should be. Smaller and more cost-effective events might seem to require less lead time, but this is not always the case. In certain markets and times of the year, there are more events than providers to support them, leading to schedules being booked months in advance. Consequently, the best equipment and top talent are often reserved well before many events start considering their AV providers. Even without all details available to sign an agreement, it is advisable to start discussions with providers as soon as the event is confirmed, allowing them to tentatively hold dates on their calendars. Although this approach may require more upfront planning work, as providers will likely follow up regularly to progress the event for their business needs, it generally offers better alternatives compared to having fewer options and higher costs closer to the event date.

Comparing Quotes and Services

Early engagement of service providers is valuable. If you are planning events in markets with numerous options, it can be beneficial to consider 3-5 different providers. This approach encourages healthy competition and ensures you select the best provider for each specific event. Sometimes, clients repeatedly use the same provider because it is convenient for the planner or venue. However, providers often have specialized areas where they excel, and other types of events may be better suited to different providers. In Seattle, there are a few quality providers, each specializing in a niche area. No single company is the best for every event in all circumstances. Providers vary in size, resources, and skill sets, but all strive to execute your event to the best of their ability. It is important for planners or venues to assess which company is best for each specific event and repeat this selection process for every event. This reinforces the concept of early engagement of a service provider. However, this should be done well in advance to avoid adding stress to event execution.

Contract Negotiation

Key Contract Elements to Include

To understand what is negotiable, it is essential to comprehend how negotiation power shifts between parties. Negotiation power transitions from the planner to the provider as the event date approaches. When a provider has several months to coordinate all necessary components on their end, they are more inclined to be flexible with concessions, pricing, schedules, etc. Providing ample time for pre-event preparations also aids providers in filling their pipeline in advance, which assists with revenue forecasting, staffing, asset management, etc. However, when engagement with a supplier occurs within a couple of months or, even worse, within 30 days before the event, the provider has less time to manage the same components that would have required months of lead time. Consequently, they are less likely to be flexible regarding price or schedule since they must also cater to clients who booked well in advance. Therefore, the most effective way to negotiate as a planner is to plan ahead. Proper planning allows you to submit your own contractual requirements for the provider to follow, such as unique appearance standards, meal and break rotations, communication policies, non-disclosure agreements, etc. If you have any critical contractual requirements for your provider, it is advisable to engage with them early, as it may be challenging to push these through on short notice if the provider needs to have their legal department review your contract requirements.

Setting Clear Terms and Conditions

Reputable providers will include their terms and conditions with their quotes or proposals. Larger providers with extensive T&Cs often provide a link to a webpage where these can be viewed in full. If a company has no terms and conditions, it may be a cause for concern. Terms & Conditions are intended to protect both parties in unique circumstances. For instance, during the 2020 coronavirus outbreak, many events were able to cancel and receive refunds due to Force Majeure or “Act of God” clauses. While this is an extreme example, without such terms, those events might not have been legally entitled to refunds or credits. To navigate a provider’s terms and conditions, it is advisable to read them thoroughly. If you find contractual language challenging, consider using AI tools to identify any unusual terms compared to standard conditions. For high-profile or high-value events, it is wise to have a lawyer review the agreement before signing.

Ensuring Flexibility and Scalability

Our company consists of a diverse group of experienced professionals who have worked at some of the world’s largest providers as well as niche boutique firms. Nonetheless, most providers we have encountered truly act as partners when it comes to the flexibility and scalability of an event. Providers may choose to be less flexible or unwilling to help scale the event if requests are submitted too late in the planning process, or if the planning started late initially. When a provider is reluctant to be flexible or increase the complexity of the event, it is typically because they aim to protect the event’s integrity. While they may not explicitly communicate this, as independent advisors, we can attest that not all AV technicians are created equal. The most skilled technicians are often reserved for multi-day conferences or large productions, which are meticulously planned in advance. To access this talent pool, early engagement in the planning process is essential. If early planning is not possible, trust your provider when they advise that adding complexity on short notice may not be in the best interest of your client.

Collaboration and Communication

Building a Strong Relationship with AV Providers

Engaging early with providers offers the advantage of building strong relationships. By adhering to this approach and engaging multiple providers for each event, you will cultivate rapport and mutual understanding over time. Although you may not select a specific provider for the initial five events, by the end of these engagements, you will likely feel as though you have previously collaborated. This fosters trust and continuity on both sides, enabling effective communication and collaboration when a partnership eventually materializes. Embrace the opportunity to network with numerous providers by affording them multiple opportunities to support your events.

Regular Updates and Meetings

After selecting a provider, schedule a meeting to review the quote and production schedule. Discuss next steps and set a meeting cadence based on the event’s complexity and lead time. Some events require just an initial and pre-convention meeting, while others need regular check-ins for 6 months. A good provider will suggest a plan, but ensure you communicate your needs to feel supported. Budget for these meetings beyond the initial planning, site visit, and pre-convention meetings. Providers typically bill hourly or in blocks for pre-production services.

Ensuring Clear Communication Channels

Today, people have over 25 ways of communicating daily. In business, common methods include emails, phone calls, texts, and third-party apps like Teams, Zoom, and Slack. Since every provider uses different tools and priorities, it’s crucial to establish communication channels early. Try to limit communication to 2-3 mediums, usually email, scheduled virtual meetings, or a Slack/Teams channel. Providers are generally flexible but require consistency. Track communication effectively by keeping your messages organized and concise. Whether you send changes to quotes via email or urgent requests through text, always use the same method. This standardization helps providers prioritize their responses, improving your experience and reducing stress.

Challenges

Technical Issues

Managing Unexpected Technical Problems

While the management of all technology is the sole responsibility of the service provider, it is crucial to understand how to proactively plan to avoid most technical issues. For example, if you are planning an auction with a “fund-a-need” video that is expected to generate 80% of the revenue for the auction’s cause, communicating this to a reputable provider will likely result in recommendations for video redundancy. This may involve additional signal cabling or backup projectors or displays, depending on the overall budget. Unfortunately, some clients choose to save a few thousand dollars by foregoing redundancy, potentially losing a return of several hundred thousand dollars. From a planner’s perspective, effectively managing communication about the technical aspects crucial to the event’s success enables the provider to offer solutions for contingency scenarios.

Ensuring Compatibility with Venue Infrastructure

It is the provider’s responsibility to ensure they are compatible and compliant with the selected venue’s infrastructure. However, as the planner, it is your job to connect with the appropriate personnel and ensure that the venue staff communicates with the provider in a timely manner. The providers did not choose the venue, you did, so they are an extension of your team. You can either manage all communications and tasks yourself, which is common but may create additional work and bottlenecks, or connect the provider directly with the venue. Regardless of the approach, ensure that both parties meet each other’s deadlines to avoid any surprises during load-in.

Availability of Technical Support During Events

It is imperative that every event, even those with minimal technical components, has onsite or dedicated in-room support during the event. However, labor is a service element that most providers cannot readily adjust or increase on demand. Understanding your event’s technical support needs is crucial in the planning process. While additional equipment can often be sourced, finding skilled personnel at short notice is significantly more challenging and typically incurs high costs. Prioritize your labor requirements early in the planning stages to ensure smooth execution. Your provider will appreciate this foresight.

Budget Constraints

Balancing Quality and Cost

Prices don’t always reflect quality. Sometimes, you overpay for mediocre services, while other times, you get great value for less. These situations are due to market fluctuations. Overpriced services may stem from last-minute events with overcommitted providers, who charge more but lack proper execution processes. Conversely, underpriced services might occur when providers need revenue and offer great deals. Both scenarios cause market inconsistency and do not reflect standard fiduciary practices. If the price doesn’t match the quality, you’re likely in one of these situations.

Identifying Hidden Costs

In many cases, collaborating with reputable providers addresses most of these issues. The majority of hidden costs observed today originate from using in-house providers at venues, particularly larger providers that have exclusivity on rigging, power, and internet. Since most venue contracts are signed prior to planning AV requirements, it is challenging to obtain a precise estimate for these exclusive services, which can sometimes exceed $10,000 even for basic events. By engaging with your provider early and determining all AV requirements before finalizing the venue contract, you can secure an accurate estimate of these costs.

Effective Budget Management Strategies

Most individuals are transparent about their budget when purchasing a car, house, or any major item where price is a significant factor. However, many planners often withhold the actual budget from providers in an attempt to secure the best possible price. While this might appear to be a sound strategy, it is counterproductive. If the provider is not given the actual budget, the likelihood of them quoting below that amount is minimal. This is because many planners lack a fundamental understanding of the true costs associated with high-quality audio-visual (AV) services. Consequently, the initial quote received is often significantly higher than expected.

Consider this analogy: if you informed a real estate agent that you wanted to buy a house without specifying a budget, do you think they would show you properties worth $100,000 or $1,000,000? Naturally, the more expensive options are usually superior in quality, more reliable, and generate greater revenue. Providers will always propose the most comprehensive solution available unless they are aware of your budget constraints. Therefore, it is essential to be transparent to avoid unnecessary back-and-forth communication and to ensure both parties can work efficiently within the specified budget parameters.

Pitfalls to Avoid

Overlooking Contract Details

Common Clauses That Are Often Missed

A commonly overlooked clause by planners and venues is the cancellation period. Generally, cancelling an event more than 30 days in advance incurs no penalty and allows for the return of any deposit made, unless there are special circumstances such as a large event where significant time and resources have already been invested. It is essential to thoroughly read and understand the cancellation policy provided by your vendor, including provisions for both equipment and labor, as well as specialty services like transportation.

Ensuring All Services Are Documented

It is essential to ensure that every requested service is documented on the quote or proposal, even if it is provided at no additional charge. If there is an item you discussed with your provider that is not reflected in the quote, request its inclusion for accurate record-keeping and to demonstrate its value to your stakeholders. This practice will safeguard both parties on the day of the event and provide a clear reference point in case of any future disputes.

Avoiding Ambiguous Terms

Most service proposals are straightforward, but there may be times when the information presented is not clear. In such cases, it is advisable to ask questions to gain further understanding. Often, the service provider can add notes to clarify line items or sections that use industry-specific terminology. For example, when a multi-destination switcher is listed on an order, a note might be added saying, “allows for video signal to be sent and switched between multiple projection and screen locations throughout the room or venue.” This helps stakeholders understand what they are paying for. It is usually sufficient to simply ask for clarification.

Inadequate Planning

Importance of Thorough Planning

Most providers we have encountered are excellent planners, which is essential for success in today’s marketplace. However, as service-oriented businesses, they typically do not advise planners on their job. If a planner does not adequately plan, the provider will execute to the best of their ability despite any lack of thoroughness. Effective planning requires engagement well in advance, allowing sufficient time for a comprehensive planning process. It is advisable to start the planning process at least one quarter in advance to ensure due diligence on both sides.

Creating Detailed Timelines

Have you ever participated in a discovery call with a provider where everything appeared to go smoothly, and mutual commitments regarding deliverables were made, only to leave the call without a clear understanding of when those deliverables would be provided? This situation occurs frequently and often results from a lack of agreed-upon timelines. For instance, if you have a meeting with your stakeholders scheduled for next Friday and wish to conduct a review beforehand, specify that a proposal or quote must be received no later than the end of the day on Wednesday. Should the supplier consider this timeline unreasonable, they will have the opportunity to explain why additional time may be necessary. Regardless, you should conclude the meeting with confidence in the established schedule for deliverables.

Contingency Planning

Contingency planning is essential for outdoor events, events with mission-critical components, or those featuring high-profile guests such as a mayor or a high-ranking executive as the keynote speaker. In each of these scenarios, a comprehensive plan should be developed to address potential challenges such as weather conditions, traffic, and entry and exit strategies. Having secondary solutions in place not only safeguards the integrity of your event but also allows for greater peace of mind leading up to the occasion.

Miscommunication

Ensuring All Stakeholders Are Informed

Event size and complexity can sometimes result in over a dozen different stakeholders for one event. This is due to factors such as the overall investment in the event, its purpose, sponsorship expectations, media exposure, and other driving elements. Managing this can be challenging for a single planner. As emphasized throughout this article, it is important to engage with providers, venues, and catering as early as possible. Regardless of when planning begins, an effective way to keep stakeholders updated is to develop a working document or SharePoint that all stakeholders can access to find updates on their own time. Switching from email updates for every detail to a well-organized, accessible working document or SharePoint can significantly reduce the number of questions and streamline communication.

Clarifying Roles and Responsibilities

An effective method for clarifying roles and responsibilities within a project is to create a production contact sheet and distribute it to the entire production team. Rather than relying on an email with everyone copied—which may easily get overlooked—consider listing everyone’s name, title, email, phone number, and their specific responsibility related to the event in a document. Distribute this document to all relevant parties. This approach enables venues, technical providers, caterers, decorators, security personnel, staffing, and other vendors to communicate directly with one another, thereby reducing the dependency on a single point of contact.

Preventing Information Silos

Information is only as effective as those who have access to it. Create a collaborative environment for your events by introducing all your vendors to one another. For example, if you want your event tech provider to work with your décor vendor, connect them and establish that expectation. Apply this approach to all vendors you want to encourage collaboration between and observe how your event comes together with reduced strain on you as the planner. Utilizing appropriate communication methods, such as organizing information in shared points or Teams/Slack channels instead of relying on email, is an efficient way to enhance your next event.

Conclusion

The document provides comprehensive guidance on best practices for event technology contracting, emphasizing the importance of early planning, effective communication, and thorough contract management.

Understanding Event Requirements: Listening to clients’ visions without interruption is crucial for understanding event requirements and ensuring successful execution.
Choosing the Right AV Provider: Early engagement with AV providers is essential to secure the best equipment and talent, as they are often booked months in advance.
Comparing Quotes and Services: Consider multiple providers to encourage competition and select the best one for each specific event, avoiding reliance on a single provider.
Key Contract Elements: Negotiation power shifts from planners to providers as the event date approaches, so early engagement allows for better contractual terms and flexibility.
Building Strong Relationships: Early engagement with providers helps build strong relationships and trust, leading to better communication and collaboration.
Managing Technical Issues: Proactively planning for technical issues and ensuring compatibility with venue infrastructure are crucial for smooth event execution.
Balancing Quality and Cost: Understanding market fluctuations can help balance quality and cost, avoiding overpriced or underpriced services.
Identifying Hidden Costs: Engage with providers early to determine all AV requirements and avoid hidden costs, especially when using in-house venue providers.
Thorough Planning and Timelines: Effective planning requires early engagement and detailed timelines to ensure all deliverables are met on schedule.
Preventing Miscommunication: Establishing clear roles, responsibilities, and communication channels helps prevent miscommunication and ensures all stakeholders are informed.