5 Things You May Be Missing from Your Contracts

Why you need this!

Payment terms and cancellation policies are likely already included in your contracts, estimates, or discussed with your clients during the intake process. However, your contracts might lack a few details that can make significant differences during an event. Whether you're offering services for corporate events, conferences, weddings, or live performances, a comprehensive contract establishes expectations for both you and your client. It details the job terms, defines responsibilities, and helps avoid misunderstandings.

Here are five things every small AV company should consider adding to their contracts:

1. Access to Clean Power

One of the most important factors in any AV setup is power. Equipment such as projectors, sound systems, lighting rigs, and cameras require consistent and reliable electricity to function properly. Unfortunately, many venues may not always have the right power infrastructure or may have power issues that can affect the performance of your equipment.

To protect yourself, it’s critical to include specific language in your contract that requires the client to provide access to clean, sufficient power. This means specifying the necessary power outlets, circuit breakers, and amperage required to run your equipment. The contract should also outline what happens if the venue does not provide adequate power, such as how you will address the issue (e.g., requesting a generator, adjusting the setup, or possibly even canceling the job).

Why it matters: If power isn’t properly supplied, it can lead to equipment failure, delays, or safety hazards. Having this clause ensures that your equipment runs smoothly, reducing the risk of technical issues that may impact the event.

Example clause: The client agrees to provide access to clean, sufficient power, with the required outlets and amperage to support the AV equipment for the event. If clean power is not provided, the AV company reserves the right to cancel or adjust the services provided at the client’s expense.

2. Onsite Parking

Parking may seem like a trivial detail, but for AV companies, it’s an essential part of the logistics. Loading in and out of equipment can be time-consuming and difficult without appropriate parking arrangements. Whether you're dealing with bulky gear, large trucks, or simply the need for a convenient spot to unload your equipment, parking can quickly become a problem without prior arrangement.

In your contract, it’s important to specify that the client is responsible for securing onsite parking, ideally near the event space or venue entrance. If parking is unavailable or there are restrictions, the contract should state that the client will cover any additional parking costs or arrange for an alternative.

Why it matters: A lack of onsite parking can lead to delays, excessive time spent unloading, and potentially additional costs if you need to pay for parking or find an alternative spot. Securing parking in advance ensures smooth setup and breakdown and minimizes stress on your team.

Example clause:The client agrees to provide adequate, onsite parking for all necessary vehicles used by the AV company, located as close to the event space as possible. If onsite parking is unavailable, the client will cover any parking fees or make alternate arrangements.

3. Meals for Crew

Providing meals for your crew is a standard and necessary expense that often gets overlooked in the contract phase. For long events or multi-day gigs, crew members will need time to eat and stay energized throughout the day. In most cases, if you're working with a client for an extended period, it’s a reasonable expectation that they provide meals for your team. If food will not be provided, it is good to know that a head of time so you can scout local options or pack a lunch.

The contract should specify whether meals will be provided and what kind of meal arrangements the client will make. Are they responsible for catering? Or will your team need to arrange for their own meals and be reimbursed later? It’s also wise to address any dietary restrictions or preferences.

Why it matters: Not addressing meal arrangements can create frustration for both the AV company and the client. Clarifying this in advance ensures that your crew remains focused and energetic, and it avoids any awkwardness or misunderstandings when it comes time to break for lunch or dinner.

Example clause: For events lasting more than [X] hours, the client agrees to provide meals for all AV personnel. If catering is not provided, the client agrees to reimburse the AV company for reasonable meal expenses incurred.

4. The Hard Stop Time and Overages

In the event world, timing is everything. Hard stop times are the moments when an event must wrap up, whether it’s due to venue restrictions, curfews, or other scheduling conflicts. Having this clearly defined in your contract is essential for both parties’ peace of mind.

A “hard stop” refers to a time after which you are not allowed to continue providing AV services. Your contract should clearly state the hard stop time and explain any overage charges for events that run longer than anticipated. It’s important to define what constitutes “overage” (e.g., additional hours worked after the hard stop time) and what your rates will be if you need to extend your time beyond the agreed-upon period.

Why it matters: Without a hard stop time in your contract, you may be stuck working extra hours without compensation, or worse, your team may have to stop mid-job without the opportunity to complete the work. Overages protect you and ensure you are compensated fairly for extra time spent at an event.

Example clause: The AV company will provide services for the event up until the hard stop time of [time]. If the event runs past the agreed-upon time, the client agrees to pay an additional hourly rate of [$X] for each hour or portion thereof that services are rendered.

5. Weather Clause

Outdoor events can be unpredictable, and weather can have a significant impact on your ability to provide quality AV services. A sudden rainstorm, high winds, or extreme temperatures can damage equipment, disrupt performances, or even create unsafe working conditions for your crew.

Including a weather clause in your contract allows you to address these risks upfront. The clause should outline what happens if weather conditions make it impossible or unsafe to proceed with the planned AV setup. Whether you need to reschedule, move indoors, or cancel the event, having this addressed in writing helps protect you from losing revenue due to uncontrollable weather conditions.

Why it matters: Weather is one of those factors you can’t control. If the weather impacts your event, you need clear guidelines on how to handle cancellations, refunds, or rescheduling. This ensures that both you and the client understand how to proceed.

Example clause:In the event of severe weather conditions that pose a risk to equipment or personnel, the AV company reserves the right to postpone or cancel services at their discretion. If the event is canceled due to weather, the client agrees to cover any non-refundable expenses incurred by the AV company.

Bonus: Bailout Clause in Case of Unsafe Conditions

In the AV industry, safety should always be a top priority. There may be times when the conditions on-site are unsafe—whether due to extreme weather, hazardous conditions, or issues related to the event's setup or behavior. A bailout clause ensures that you have the ability to leave or withdraw from a job if you believe the environment is unsafe for your crew or equipment.

This clause should outline that if conditions change or if safety is compromised, the AV company has the right to stop working, evacuate, or leave the event entirely. The clause should also specify whether any fees will be applicable in such cases.

Why it matters: Protecting the health and safety of your crew is non-negotiable. A bailout clause empowers you to make the right call in emergency situations.

Example clause: The AV company reserves the right to discontinue services and vacate the premises if, at any time, the safety of its personnel or equipment is compromised. If the company is forced to leave for safety reasons, the client will be responsible for any non-refundable fees and costs.

Conclusion

For small AV companies, having a well-thought-out contract is essential. It not only protects your business but also helps ensure clear communication with clients and a smooth execution of the event. By considering and including clauses for access to clean power, onsite parking, meal provisions, hard stop times, weather contingencies, and a bailout clause for unsafe conditions, you can ensure that both you and your clients are on the same page, and that you are equipped to handle any challenges that arise.

Remember, your contract isn’t just a formality—it’s a crucial tool for setting expectations, preventing disputes, and protecting your business from unexpected obstacles.

*Please note, these clauses are only examples and should in no way be viewed as legal advice.