How to Read Supplier Contracts - Payment Schedules, Penalties & Overtime

Contracts are where dream plans meet real money. Read them like a project blueprint: what’s included, when you pay, what happens if plans change, and how overtime is computed. The goal is clarity—so timelines run on time, crews know the scope, and invoices match expectations.

Scope and deliverables

• What exactly is included (items, quantities, hours, crew count).
• Where and when (addresses, call times, cutoffs, ingress/egress windows).
• How quality is defined (samples, mood references, service ratios).
• What’s excluded (e.g., generators, premium florals, LED walls).
  If visuals are mission-critical, align expectations with documentary shooters who state deliverables and turnaround clearly: compare portfolio-driven teams.

Payment schedules you can live with

Typical structure: Reservation (10–30%), Progress (30–50%), Balance (event week or event day). Ask for:

• Due dates tied to calendar days, not vague milestones.
• Modes (bank transfer, e-wallet), and official receipt timing.
• What happens if late (grace period vs penalties).

Sample timeline (9–12 month runway)

• Booking day: 20% to secure date
• T–90 days: 30%
• T–14 days: 50% balance after final headcount

Penalties, cancellations, and rescheduling

• Client cancel: refundable vs non-refundable; sliding scales over time.
• Supplier cancel: equivalent replacement + refund; escalation path named.
• Reschedule: same rates vs new rates; rebooking fee caps; validity window.
• Force majeure: what qualifies; who triggers postponement; storage fees.
  For holistic cost effects—service charge, VAT, corkage—fold this banquet math explainer into your comparisons: make fees transparent across proposals.

Overtime and clock rules

Spell out when the clock starts (crew call or guest ingress) and what stops it (program end, teardown complete). Require written per-hour rates for:

• Venue/banquet
• Photo/video and HMUA
• AV (techs, equipment)

Quick example
Included: 6 hours (2:00–8:00 pm).
Actual: end 9:15 pm → 1.25 hours OT.
Rates: venue ₱6k/hr, AV ₱4k/hr, photo/video ₱3k/hr.
Total OT ≈ ₱16.25k. Put this math in the contract, not just on email.

When tech needs scale, work only with AV crews for sound and lighting that publish OT and power specs up front: scan audio-lighting partners with clear scopes.

Change orders and add-ons

• Format: written change order with price + time impact.
• Cutoff: no-cost edits until X days before; after that, subject to fees.
• Approvals: who can authorize (you, partner, planner).
• Record: every CO appended to contract so final invoice reconciles cleanly.

Usage rights and files

• Photo/video: personal use vs commercial; social tagging; raw files policy; delivery dates; archival window.
• Music licensing: who covers it for edited videos.
• Designs: mockups and working files usually not included unless stated.

Logistics clauses that prevent day-of friction

• Load-in/out: elevator bookings, docks, curfews, security IDs.
• Power: amperage, distribution, backup gensets, fuel responsibility.
• Safety: candle rules, rigging approval, weather triggers.
  If you’re juggling multiple sites or strict hotels, a steady hand is worth it—bring in coordination leads who live inside run-downs: talk to timeline captains who keep crews synced.

Supplier meals, parking, and lodging

State counts, service style (boxed vs hot meal), timing, and where served. Clarify parking/valet charges and crew rooms for early call times or out-of-town builds.

Insurance, liability, and substitutions

• COI: who provides certificates naming the venue; deadlines for submission.
• Damage: who pays for accidental breakage; fair wear-and-tear excluded.
• Artist swap: equal or better replacement if a named lead is ill; your right to approve substitutes.

Red flags in fine print

• “Subject to availability” with no commitment after you’ve paid a reservation.
• Uncapped “market price” language for florals/menus.
• Overtime “TBD” or “to be discussed on the day.”
• Delivery terms that promise “best effort” with no hard date.

Side-by-side comparison worksheet

Create columns for each vendor and rows for: scope, crew count, hours, OT rate, payment dates, cancellation ladder, reschedule rules, power specs, meals/parking, COI, deliverables and dates. Add a row for hidden multipliers (service charge, VAT, corkage). For staffing and escalation ownership, this OTD vs full-service breakdown helps decide who carries the operational risk: choose the right level of planning support.

Negotiation that protects execution

• Trade low-impact décor upgrades for useful adds (extra buffet line, coffee service, or rehearsal hour).
• Ask for net-net pricing on custom menus to avoid layered markups.
• Lock ingress/egress times with engineering in writing.
• Cap rebooking fees if a government advisory forces movement.

Final pre-sign checklist

• All numbers net + service charge + VAT shown.
• Exact start/stop and OT math.
• Change order rules and cutoffs.
• Reschedule/cancel ladders for both sides.
• Usage rights and delivery dates.
• Power, safety, and COI requirements.

When contracts are clean, the rest falls in line. For nationwide context—what each category should roughly take from your total and how region shifts pricing—anchor decisions to a broader baseline: use a national budget playbook to set guardrails.

As you lock suppliers, keep communication tight and written. For visuals that honor timelines and house rules (churches, hotels, or gardens), start shortlisting portfolio-strong teams with disciplined coverage: line up visual crews who deliver on time. If your program leans entertainment-forward, pair them with tech teams that publish power and rigging rules clearly: book sound-and-light partners with transparent specs. And if the admin pile is growing, hand it to operations-first planners who will run the playbook end-to-end: work with checklist-driven coordinators.