Chapter 9 Contract Considerations Contract Considerations C H A P T E R 9.
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Transcript of Chapter 9 Contract Considerations Contract Considerations C H A P T E R 9.
Chapter 9 Contract Considerations
Contract ConsiderationsContract Considerations
C H A P T E R 9
Legal Considerations • Insurance
– These needs are determined by the type and location of your event.
– Liability insurance is necessary no matter what because a facility owner will require you to purchase it to protect their interest in your event.
• Weather – Cancellation insurance can ultimately save an event from
bankruptcy before it has a chance to happen.
– Cancellations can occur because of weather, power outages, flu outbreaks, and other unforeseen circumstances.
(continued)
Legal Considerations (continued)
• Employment
– Staffing of events is key to providing a safe environment.
– Hiring adequate supervision and a trained and competent staff protects the event and facility managers.
– Employers must comply with federal laws.
– For the most part, sport organizations rely on volunteers.
– Select the most qualified volunteers because the success of the event largely falls on their shoulders.
(continued)
Legal Considerations (continued)• Regulations, licenses, and permits
– What you offer during your event will dictate the types of regulations, licenses, and permits you need.
– Common regulations are the use of loudspeakers in public areas, performing in a public area, and building permits.
• Food handling– When food is improperly handled, it leads to illnesses of guests.
– Hiring a food service manager with experience and proper training will ensure you have taken the necessary steps to offer quality food service.
(continued)
Legal Considerations (continued)
• Liquor
– Event managers face the difficult decision of whether to serve alcohol.
– Alcohol is a great source of revenue, but if you serve alcohol you incur risks.
– Develop a comprehensive alcohol management plan that is part of your overall risk management plan.
Contract Law 101
• Agreements between events and facilities, events and vendors, and events and ancillary contractors must be negotiated and formalized.
• A contract is a promise that requires that an offer be presented, considered, and accepted and the parties will enter into a legal relationship.
• Two types of contracts:– Bilateral involves two parties engaging in a promise.
– Unilateral is one direction; an offer is made but not accepted.
Contracts• Offer: The initial promise that one party gives to another to
either do something or not do something. There is usually a price tag included.
• Acceptance: When the person being offered something accepts the conditions.
• Consideration: Something of value offered by one person in exchange for something of value from the other person.
• Capacity: Being of legal age and mentally capable of understanding the conditions of the promise.
• Legality: The promise must be based on a legal transaction.
Types of Contracts• Facility
– Because most facilities do not put on their own events, they look to lease the use of their facility.
– When renting out a facility, the facility manager and event manager often have to come to an agreement and sign a contract.
• Game– These contracts are formed so there are no discrepancies in the
terms of the agreement between the teams participating. – The date, time, location, compensation for playing, any travel
reimbursement, rules, and regulations are always included in the contract.
(continued)
Types of Contracts (continued)
• Sponsorship– Formed to protect the best interests of the parties involved.
– Expectations, rights, benefits, fees, terms, governing laws, marks, logo usage, and duties should be discussed in the contract.
• Waivers and releases– If the event is participatory (e.g., a sport competition), use
waivers.
– A waiver releases the organization from liability should the participant become injured during the event.
Federal Legislation
• Events must follow the rules and restrictions of the facility where they operate.
• Americans with Disabilities Act (ADA)– Formed in 1990, this act aimed at mainstreaming people with
disabilities into all aspects of society.
– Facilities are required to provide barrier-free accommodations that could require modifications to current layouts.
– Everything such as event forms and hotel accommodations need to be taken into consideration by the event planner.
(continued)
Federal Legislation (continued)
• Occupational Safety and Health Administration (OSHA)– The primary goal is to reduce the number of job-related
illnesses, injuries, and deaths in the United States.
– The tragedy of the Indiana Sate Fair in August 2011 is an example of why laws like OSHA are needed.
– This shows why event managers must perform due diligence in hiring qualified staff and subcontractors.