Client contracts and getting paid

Your own agreement: scope, fee, deposits, cancellation, liability cap, photo rights. Invoicing and late payment.

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Client contracts and getting paid.

Your own agreement: scope, fee, deposits, cancellation, liability cap, photo rights.

Invoicing and late payment.

Your agreement, not theirs.

Every client, including friends, signs your agreement before you do any work.

A written agreement protects both sides: the client knows what they are buying, and you know when you are owed money and what happens if the event is cancelled.

Deposits and milestones.

A deposit secures the date and pays for the work you do before the event.

A common structure for full service is a non-refundable retainer of 30 percent to 50 percent on signing, a second payment at the halfway point, and the balance before the event day, not after it.

Invoicing.

An invoice needs your business name, address and HST number if registered; the client's legal name; a unique number; the date; the service and event; the amount before tax; HST at 13 percent shown separately; the total; the due date; and how to pay.

Accept e-transfer and cheques, and card payment if you are willing to absorb or pass on the fee.

Late payment.

Most late payments are disorganisation, not refusal.

Escalate in steps and keep every step polite and in writing.

Worked example: the Harbour Gala.

The foundation signed the planner's template agreement in May.

Fee 4,500 dollars plus HST; 50 percent (2,250 dollars plus HST) on signing, non-refundable; the remaining 50 percent due within 14 days of the post-event report.

That is the lesson. The worksheet and the quiz are just below this video.

What you will be able to do

• Draft a client agreement outline
• Set deposits and milestones
• Handle late payment

Your agreement, not theirs

Every client, including friends, signs your agreement before you do any work. A written agreement protects both sides: the client knows what they are buying, and you know when you are owed money and what happens if the event is cancelled. Have a lawyer draft or review your template once; use it for every event, and change only the schedule of services and the fees. What follows is the outline the lawyer will work from, not legal advice.

Deposits and milestones

A deposit secures the date and pays for the work you do before the event. A common structure for full service is a non-refundable retainer of 30% to 50% on signing, a second payment at the halfway point, and the balance before the event day, not after it. Day-of coordination is often paid 50% on booking and 50% two weeks out. Whatever you choose, tie each payment to a date, not to a task, because tasks slip and dates do not. Never start work before the deposit has cleared.

1. Send the agreement and the deposit invoice together.
2. Hold the date only when both are back; say so in the cover email.
3. Invoice each milestone ten days before it is due, with the due date in bold.
4. Send a friendly reminder on the due date.
5. Pause work if a payment is more than ten days late, in writing, as the agreement allows.

Invoicing

An invoice needs your business name, address and HST number if registered; the client’s legal name; a unique number; the date; the service and event; the amount before tax; HST at 13% shown separately; the total; the due date; and how to pay. Accept e-transfer and cheques, and card payment if you are willing to absorb or pass on the fee. Keep invoices numbered in sequence; your accountant will ask.

Late payment

Most late payments are disorganisation, not refusal. Escalate in steps and keep every step polite and in writing. A reminder on the due date. A second reminder at seven days with the invoice attached again. A phone call at fourteen days to the person who signed. At thirty days, a formal letter referring to the agreement, any interest or late fee it allows, and a deadline. Past that, small claims court is the realistic route for most planners’ invoices; check the current limit and the filing fee with the Ontario courts before you rely on it. The best defence remains the payment schedule: if the balance is due before the event, late payment after the event is rare.

Worked example: the Harbour Gala

The foundation signed the planner’s template agreement in May. Fee $4,500 plus HST; 50% ($2,250 plus HST) on signing, non-refundable; the remaining 50% due within 14 days of the post-event report. That later balance date was a concession to the foundation’s board, which approves payments monthly, and the planner accepted it because the client was a registered charity with a strong payment record. Scope excluded the silent auction catalogue; out-of-scope work billed at her hourly rate on written approval. Vendor contracts were signed by the foundation directly. Liability was capped at fees paid. The portfolio clause allowed her to describe the event and use licensed photos with the foundation’s approval of the wording.

The auction catalogue request in September became an approved change of eight hours by email. The final invoice went out on day twelve after the event and was paid on day twenty, six days late; the reminder at day fourteen was a single polite email, and the finance officer apologised for a board meeting date. No escalation was needed, because the agreement had done the work in May.

Common mistakes

• Working for a friend on a handshake.
• Starting before the deposit clears.
• Signing vendor contracts in your own name without meaning to be liable for them.
• Balances due after the event as the default rather than the exception.
• No cancellation clause until the first cancellation.

Worksheet

Download the worksheet, complete it for your own event (or the running gala example), and keep it in your course binder. It takes about 10 minutes.

Download the worksheet (PDF)