4 ways to mitigate risk and protect your corporate event budget

Provision 1: Event venue quality and physical alterations 

The condition and functionality of your contracted venue may change prior to your event, especially if you’ve booked years in advance. Renovations, maintenance, closures or delays in construction can significantly impact attendee satisfaction and operational success.  

A well-drafted quality and physical alterations clause ensures the space you contracted is the same (or better) as your event begins. 

What to include 

• Renovations/repairs: Require a venue to disclose any planned renovations or nonemergency repairs during or prior to your event. 
• Performance: Outline the level of service, staffing, brand and star rating required to match performance expectations. (Does a 5-star resort live up to 5-star expectations?)  
• Amenity availability: Ensure all restaurants, recreational activities (pool, spa, fitness, golf), entertainment venues and outlets will be open and available during the event. 
• Cancellations: Include language that gives you the right to cancel without penalty if renovations or quality deteriorations materially interfere with the event’s success. 
  

Pro tip: Add a site inspection clause 

This reassures event planners that the contracted space meets expectations and enables proactive pivots, if necessary. A site inspection clause gives you the right to (re)inspect the property under certain conditions.  

• If circumstances prevented a site visit before the contract was finalised 
• If there are material changes to the venue 
• In cases where the event is far in advance and a follow-up ensures the site remains suitable  
  

Related: How to maximize site inspections to inspire incredible event design 

Provision 2: Event deposit and payment processes 

While it’s reasonable to cover initial event costs through a first deposit, event planners should avoid committing to too high of an amount too early. Keep in mind: Deposits are typically due before attendee registration closes. And large transactions often require coordination between departments and take longer to approve.  

Draft a realistic payment timeline that accounts for multiple decision-makers and satisfies compliance measures and risk mitigation efforts. Poor planning creates unnecessary financial strain, which can negatively impact attendee experiences.  

What to include 

• Tiered deposits: Tie them to deliverables or timeframes, not just arbitrary dates. 
• Attrition/commission: Account for these as they may greatly reduce final costs.  
• Payment flexibility: Build in flexibility for processing, direct bill and accounting review. 
• Refunds: Clarify how deposits will be applied or refunded due to cancellation, force majeure and rebooking. 

Pro tip: Ask hotels or other suppliers if they offer direct invoicing

This allows a supplier to charge all agreed-upon expenses to a primary account, streamlining payment processes and reducing the need for large upfront deposits. ITA Group is pre-approved with many hotel brands and independent companies, making reconciliation easier and preserving capital through reduced initial commitments.

Provision 3: Secured pricing and services 

Goods and services are more expensive. Whether due to inflation, tariffs or supply chain issues, rising prices impact budget planning in a big way. Achieve financial stability for your programme through clear contract language.   

Clarifying budget lines avoids unforeseen costs. It also strengthens your ability to negotiate concessions or reallocate value elsewhere in the agreement. By eliminating pricing uncertainty, you shift your focus toward producing a successful event. 

What to include 

• Surcharge disclosure: Require that all taxes, service charges, fees and potential surcharges be disclosed upfront and included in the quoted price. 
• Discretionary charges: Ensure discretionary charges by suppliers remain fixed. Except as mandated by law, pricing should not be subject to change.  
• Price adjustments: Require any price adjustments be made through a formal amendment, mutually agreed upon by all parties. 
• International contracts: Clearly define the transaction currency. Pricing should be secured to mitigate the impact of exchange rate fluctuations. 

Pro tip: Request a full, itemised breakdown 

The true total cost of a contract is often hidden. Resort fees, taxes and service charges should be included early in the negotiation process. Don’t hesitate to challenge vague or bundled charges. 

Provision 4: Supplier contract performance and remedies   

Contract language must be enforceable. You've invested quality time drafting the commitments of both parties. But without performance remedies, a contract is just a wish list. When one party fails to meet the agreed-upon obligations, the contract should provide a clear path forward.  

Common remedies include monetary damages, specific performance or cancellation and restitution. The goal is to ensure the nonoffending party is made whole. Remedies further set expectations and define an agreed-upon plan for how to respond by reducing ambiguity and conflict. Remember: It’s not about anticipating failure but rather equipping your program to manage any situation.  

What to include 

• Termination and breaches: Include language addressing outright termination and material breaches. 
• Triggering events: Identify what will automatically activate performance remedies. Avoid relying on mutual decisions after a breach. 
• Liability limits: Maintain fairness while ensuring the terms allow for full recovery of losses. 
• Dispute resolution procedures: Include how to handle disputes, where jurisdiction lies and who is responsible for attorney fees should there be additional escalation. 
  

Pro tip: Identify and prioritise what matters most 

Whether it’s participant experience, product launch or another key element, ensure the contract reflects that focus through specific deliverables and accountability measures. 

Protect your corporate event budget and mitigate risk with full-service event management  

Look for an event management partner that ensures your contracts offer the strongest protection.  

Along with operational functionality, make attendee safety and client reputation top priorities for contract discussions.  

Reinforcing previously overlooked clauses is one way event managers deliver the best experience. By partnering with ITA Group, event planners worry less about the fine print. From the earliest stages of sourcing to post-operation review, our team considers every contingency.  

Navigating the dynamic landscape of legal language is one aspect of producing a complex global event. Our event production experts also focus on designing novel experiences. Learn how to build emotional connections and brand loyalty through the power of event experiences.