Source: Robin Roth, Senior Contracts Editor
E-Specs: July 18, 2006

Does the following contract provision include all the necessary information? "Hotel will cover the cost for up to 39 overheads and screens over 4 days.” Ask this question - is labor cost is included? If not, given the current cost of labor, the group could find itself way over budget. This kind of ambiguity can be avoided by specifying that labor fees are included.

Be as specific and detailed as possible when listing concessions in the contract. Brainstorm all possible gaps in information. The above example demonstrates the challenges you face when considering all aspects of concessions. One legal requirement for a valid contract is that it must be clear and specific in its terms, which is easy to understand when it comes to the vital specifics like date, rates and space. If these material terms are not accurately agreed to in writing, it would seriously interfere with performance of the contract. Less visible on the radar screen are the concession terms, which ironically you may have negotiated just as strenuously as the material terms. Depending on the concession, there are areas of uncertainty that fall outside the fill-in blanks on a contract template and require a different mode of thinking. In comparison, dates, rates and space are simple and uncluttered data that can be easily entered in the grids on a template.

Here's a checklist of some options to consider when wording your concessions, but keep in mind that all possible scenarios cannot be listed here. The list is intended more to sharpen your thinking about covering all areas.

• Is it complimentary?
• Are there charges? If so, specify if at the group rate or state actual rate or charge.
• How long? State how many nights or days or give actual dates.
• What kind of suite or room?
• Does it apply to all if the concession is a multiple? With rooms, for example, state "each," as in "six nights each."
• If an upgrade, is it at the group rate?
• Are airport transfers round-trip? What kind of vehicle?
• To whom are amenities to be provided - VIPs? When will they be provided ("welcome amenities")?
• What exactly happens to the concessions if they are only provided if the group utilizes a certain percentage of the room block? State the specific consequences if that percentage is not met (...the complimentary Presidential suite will be provided at the group rate.)

(Note: This information is not intended to be "legal advice." A qualified attorney should be consulted to review all contract issues.)