How can you ensure vendor contracts protect your client's interests for a fundraising gala?

1 Scope of work

The scope of work is the section of the contract that describes what the vendor will provide, how they will provide it, and when they will provide it. It should be as detailed and specific as possible, to avoid any misunderstandings or disputes later on. For example, if you hire a caterer for your gala, the scope of work should include the menu, the number of guests, the dietary requirements, the service style, the equipment, the staff, the delivery time, and the cleanup. The scope of work should also state what is included and what is not included in the price, and what are the extra fees or charges that may apply.

2 Payment terms

The payment terms are the section of the contract that specifies how much, when, and how you will pay the vendor for their services or products. You should negotiate the payment terms that suit your client's budget and cash flow, and that are fair and reasonable for the vendor. For example, you may agree to pay a deposit upfront, a percentage upon delivery, and the balance after the event. You should also include the payment methods, the invoice details, the late fees, and the cancellation fees. The payment terms should also reflect the quality and performance standards that you expect from the vendor, and what are the consequences or remedies if they fail to meet them.

3 Liability and insurance

The liability and insurance are the section of the contract that covers the risks and responsibilities of both parties in case of any accidents, damages, injuries, or losses that may occur during or after the event. You should make sure that the vendor has adequate and valid insurance coverage for their services or products, and that they provide you with a certificate of insurance as proof. You should also review the liability clauses and limit your client's exposure to any claims or lawsuits that may arise from the vendor's negligence or misconduct. For example, you may include a hold harmless clause, an indemnification clause, or a limitation of liability clause.

4 Force majeure

The force majeure is the section of the contract that addresses the unforeseen and unavoidable events that may prevent or delay the vendor from fulfilling their obligations under the contract. These events may include natural disasters, pandemics, strikes, riots, wars, or government actions. You should make sure that the contract defines what constitutes a force majeure event, and what are the rights and duties of both parties in such a scenario. For example, you may agree to suspend, postpone, or terminate the contract, or to modify the terms and conditions accordingly. You should also include a clause that requires the vendor to notify you as soon as possible if a force majeure event occurs or is likely to occur.

5 Dispute resolution

The dispute resolution is the section of the contract that outlines the process and procedures that both parties will follow in case of any conflicts or disagreements that may arise from the contract. You should try to resolve any issues amicably and professionally with the vendor, and to document any communications or actions that you take. However, if you cannot reach a satisfactory resolution, you should have a clause that specifies how you will escalate the matter to a third party, such as a mediator, an arbitrator, or a court. You should also include a clause that states the governing law and jurisdiction of the contract, and the fees and costs that each party will bear.