Cancelled events

[egw]

Hi,

 

If you have been engaged to supply equipment and / or personnel to support an event, and that event is then cancelled do you make any charges (e.g’s; for time spent planning or for lost income)?

 

Cheers,

 

Ed

[WolvesAndi]

How much notice were you given

[gareth]

Did you either sign a contract for the job, or receive a written purchase order from the client? Or was it just agreed verbally?

[Andrew C]

Did you either sign a contract for the job, or receive a written purchase order from the client? Or was it just agreed verbally?

A verbal contract is just as binding...only a lot more difficult to enforce. ;)

[MikeR]

It depends. If you have a purchase order then some form of cancellation charge would be the norm I would say. You should also have explicitly stated up front that cancellation fees (probably a sliding scale depending on proximity in time of cancellation to the event) would be applicable in the event of a cancellation. Whenever I come into contact with a new client I send them a set of general conditions of work before accepting any work from them (or with the first acceptance). In my experience this does not harm your chances of getting work from serious companies, while it does make timewasters think twice though. In time wasters I include those who are just shopping for a range of prices and dont tell you that youre pitching against others. Pre production time spent prior to an event which is cancelled should by rights incur a fee. The preproduction work was requested and carried out, the cancellation of the event is irrelevant. However this should be in your contract or agreement with your client. Without the appropriate paperwork your chances of cancellation fees etc are probably minimal alas.

[Ike]

I have found the PSA sample contract useful. Links to it can be found at the bottom of this page.

[egw]

I have found the PSA sample contract useful. Links to it can be found at the bottom of this page.

Hi,

 

Thank you Ike, that is exactly what I was looking for.

 

Essentially it's all internal bureaucracy; the shows were being put on by another department and as such they were budgeted income. However, we can only get money for the cancelled shows if that can be considered 'industry standard'. A somewhat brief (and bad) explanation but hopefully sufficient.

 

Many thanks for peoples help,

 

Ed

[Guest lightnix]

Notice of your cancellation charges should be given in advance of finally accepting any contract and should form a part of your Terms and Conditions of Supply.

 

Here's how it's supposed to work...

 

1. Client decides to engage your services for a production and issues a written purchase order to that effect.

2. You accept the order, preferably in writing (e-mail is legally counted as "writing" these days), subject to your T&Cs, which you enclose / attach.

3. Client acknowledges your acceptance and confirms the booking, at which point there is a legally binding contract between you.

 

My cancellation rates used to run as follows...

 

7 days notice or less: 100% of the agreed fee, to a maximum of 60 days.

8-14 days: 50 % (up to 60 days)

15-21 days: 25% (ditto)

21+ days: 10% (ditto)

 

I never had to enforce it, but it's good to have it there. Once again, though: cancellation fees must be advised in writing before work commeneces.