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Advice You - Tips for Easier Hotel Contract Review When Planning a Meeting
The next time a hotel contract lands on your desk, read it twice. First, read what is there and identify the terms that need to be rewritten, changed, or deleted. Then, read it for what is not there and needs to be added. The following checklist will help you determine what to look for and what is missing. (Note: This information is not intended to be “legal advice.” Meeting planners and hotel managers should consult a qualified attorney to review all contract issues.)
CONTRACT SECTIONS
General Contract Issues
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CONTRACT SECTIONS
General Contract Issues
•
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
Date of contract initiation.
• Accurate and complete legal names of both parties, addresses, and contact information as well as the name of the meeting. Be sure the contracting party is not listed as the name of the meeting; they are often not the same.
• Actual dates of the meeting, not the dates of the room block.
• Statement of whether the contract is a first or second option. A first option should specify the date by which the contract must be signed and returned to the hotel, after which date the option wi
• Accurate and complete legal names of both parties, addresses, and contact information as well as the name of the meeting. Be sure the contracting party is not listed as the name of the meeting; they are often not the same.
• Actual dates of the meeting, not the dates of the room block.
• Statement of whether the contract is a first or second option. A first option should specify the date by which the contract must be signed and returned to the hotel, after which date the option wi
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
ll expire and the contract may have to be renegotiated. A second option should include the above as well as the date by which the hotel must reply to you after receiving the signed contract (typically three business days) and notify you of its decision.
Sleeping Room Block
• Table format showing the year, days of the week, and dates of the room block.
• Specific breakdown by type(s) of rooms/suites and number(s) per night.
• Beware of language that locks you into payment for the entire contracted block.
Room R
Sleeping Room Block
• Table format showing the year, days of the week, and dates of the room block.
• Specific breakdown by type(s) of rooms/suites and number(s) per night.
• Beware of language that locks you into payment for the entire contracted block.
Room R
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
ates
• Year quoted. If rates are quoted for any year other than the current year, that year should be specified.
• Future rates. If rates are not definite yet, indicate the formula to be used and when final rates will be established (usually 12 months out). Use at least two factors in the formula, such as percentage off rack rate, maximum percentage increase per year, or the Consumer Price Index, and state that final rates will be the lesser of the two formulas.
• Breakdown of rates by type of room/suite, single
• Year quoted. If rates are quoted for any year other than the current year, that year should be specified.
• Future rates. If rates are not definite yet, indicate the formula to be used and when final rates will be established (usually 12 months out). Use at least two factors in the formula, such as percentage off rack rate, maximum percentage increase per year, or the Consumer Price Index, and state that final rates will be the lesser of the two formulas.
• Breakdown of rates by type of room/suite, single
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
/double, deluxe, and government rate. State the percentage blocked in each rate category.
• Applicable taxes (sales, occupancy), service charges, and gratuities.
• Applicable charges for extra person in room.
• Currency. If the contract was initiated in another country, the rates are usually quoted in that country’s currency.
• Ensure that final rates are not subject to change.
Complimentary and Other Negotiated Concessions
• One complimentary room per 50 revenue-producing rooms actually utilized. Spell out
• Applicable taxes (sales, occupancy), service charges, and gratuities.
• Applicable charges for extra person in room.
• Currency. If the contract was initiated in another country, the rates are usually quoted in that country’s currency.
• Ensure that final rates are not subject to change.
Complimentary and Other Negotiated Concessions
• One complimentary room per 50 revenue-producing rooms actually utilized. Spell out
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
how the comps are calculated (on a cumulative or per-night basis) and whether they can be credited to the master account.
• Additional concessions. Include specifics such as the duration of each concession, i.e., comp rooms are for five nights each.
• If concessions are based on 80 percent of the room pickup, specify what happens if the pickup is less than 80 percent. • State if a concession is complimentary.
Reservations
• Procedure. Is the group, hotel, or a third party handling housing? Will individuals cal
• Additional concessions. Include specifics such as the duration of each concession, i.e., comp rooms are for five nights each.
• If concessions are based on 80 percent of the room pickup, specify what happens if the pickup is less than 80 percent. • State if a concession is complimentary.
Reservations
• Procedure. Is the group, hotel, or a third party handling housing? Will individuals cal
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
l in, use reservation cards, be identified on a rooming list, or be serviced by a housing bureau? Will you use your own reservation form or the hotel’s?
• Cutoff date. Identify the exact cutoff date — usually 30 days prior to the major arrival day. Indicate whether reservations received after the cutoff date will be honored at the group rate or a rate at the hotel’s discretion.
• Confirmations. Specify if/when they are to be sent by the hotel.
• Check-in/check-out times.
• Dishonored reservations. Spell out wha
• Cutoff date. Identify the exact cutoff date — usually 30 days prior to the major arrival day. Indicate whether reservations received after the cutoff date will be honored at the group rate or a rate at the hotel’s discretion.
• Confirmations. Specify if/when they are to be sent by the hotel.
• Check-in/check-out times.
• Dishonored reservations. Spell out wha
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
t will happen if individuals with guaranteed reservations are turned away or “walked.” Consider reimbursement of replacement accommodations or transportation to and from the new hotel.
Payment
• Rooms. Will individuals or the organization be responsible for payment?
• Deposits. For the group’s master account, how much is due and when? For individuals, a credit card guarantee or one night’s deposit is usually required.
• Early departure charge. Specify the amount (it should be less than one night’s room rate) an
Payment
• Rooms. Will individuals or the organization be responsible for payment?
• Deposits. For the group’s master account, how much is due and when? For individuals, a credit card guarantee or one night’s deposit is usually required.
• Early departure charge. Specify the amount (it should be less than one night’s room rate) an
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
d that guests will be informed of this potential charge upon check-in.
• Master account. Typically, the credit application is due 90 days prior to arrival. Stipulate items that are to be included on the master account, as well as authorized signatories and payment terms.
Reports/Printouts to Request
• A per-night room pickup report.
• Individual cancellations and no-shows.
• Statistics for food and beverage revenue.
Function Space and Meeting Arrangements
• Agenda. Is it tentative or finalized? What are the
• Master account. Typically, the credit application is due 90 days prior to arrival. Stipulate items that are to be included on the master account, as well as authorized signatories and payment terms.
Reports/Printouts to Request
• A per-night room pickup report.
• Individual cancellations and no-shows.
• Statistics for food and beverage revenue.
Function Space and Meeting Arrangements
• Agenda. Is it tentative or finalized? What are the
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
due dates for the program? When will the hotel provide room names?
• Exact days, dates, setups, and functions.
• Specific room names or minimum square feet required; start/end times for 24-hour hold on space.
• Ancillary charges. Are there charges for meeting room rental and/or setup? Is there a fee for “extensive” meeting room setups and how is that defined? Is there a charge for using outside suppliers or contractors? If there is no charge for any of these services, be sure to state that.
• Release of space.
• Exact days, dates, setups, and functions.
• Specific room names or minimum square feet required; start/end times for 24-hour hold on space.
• Ancillary charges. Are there charges for meeting room rental and/or setup? Is there a fee for “extensive” meeting room setups and how is that defined? Is there a charge for using outside suppliers or contractors? If there is no charge for any of these services, be sure to state that.
• Release of space.
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
hat are the terms?
• Security guards. Hotel should “request,” not “require,” security guards.
• No changes to function space assignments or requirements should be allowed without written group consent.
Food and Beverage
• Menu prices. Firm prices should be established no later than six months out.
• Guarantees. Most guarantees should be given 48 or 72 hours prior to the function. Specify how weekends affect this deadline.
• Taxes and gratuities. State whether the service charge is taxable.
• Hotel’s alcohol
• Security guards. Hotel should “request,” not “require,” security guards.
• No changes to function space assignments or requirements should be allowed without written group consent.
Food and Beverage
• Menu prices. Firm prices should be established no later than six months out.
• Guarantees. Most guarantees should be given 48 or 72 hours prior to the function. Specify how weekends affect this deadline.
• Taxes and gratuities. State whether the service charge is taxable.
• Hotel’s alcohol
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
service policy, adherence to laws, and intoxication policy.
• Food and beverage cancellation or reduction/mitigation clause.
Exhibit Space
• Exact dates. Include beginning and ending times, setup and move-in, tear-down, and move-out.
• Costs. What is the rental fee? Does it include daily maintenance and vacuuming of the aisles? Be sure the charges are by net, not gross, square feet.
• Booths. List type, size, and number.
• Box delivery. What are the charges? When shipping boxes to the hotel prior to the meeti
• Food and beverage cancellation or reduction/mitigation clause.
Exhibit Space
• Exact dates. Include beginning and ending times, setup and move-in, tear-down, and move-out.
• Costs. What is the rental fee? Does it include daily maintenance and vacuuming of the aisles? Be sure the charges are by net, not gross, square feet.
• Booths. List type, size, and number.
• Box delivery. What are the charges? When shipping boxes to the hotel prior to the meeti
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
ng, where and by when should they be shipped?
• Security guards. Are they required?
• Release of space. What are the terms?
• Exhibitor responsibility clause. Make sure it absolves both the hotel and your organization of liability.
Room Block Control and Pickup
• Provisions for attrition and mitigation. (See “Analyzing Attrition Clauses” and “Making Sense of Mitigation” on pages 37 and 40, respectively.)
• Meeting room rental/facilities service fees. Does the rental fee apply per day for a certain number of d
• Security guards. Are they required?
• Release of space. What are the terms?
• Exhibitor responsibility clause. Make sure it absolves both the hotel and your organization of liability.
Room Block Control and Pickup
• Provisions for attrition and mitigation. (See “Analyzing Attrition Clauses” and “Making Sense of Mitigation” on pages 37 and 40, respectively.)
• Meeting room rental/facilities service fees. Does the rental fee apply per day for a certain number of d
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
ays (if so, it should apply only to the major days) or is it all-inclusive? The rental scale should be based on sleeping room revenue.
• Include room block review dates and allowed adjustment/attrition.
• If there are no room block performance charges, that should be stated.
• Any nonrefundable individual cancellation or early departure fees that are collected should be applied to any group performance or cancellation charges due.
• Do not allow more than one room block performance charge.
Rights of Terminatio
• Include room block review dates and allowed adjustment/attrition.
• If there are no room block performance charges, that should be stated.
• Any nonrefundable individual cancellation or early departure fees that are collected should be applied to any group performance or cancellation charges due.
• Do not allow more than one room block performance charge.
Rights of Terminatio
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
n for Cause
• Force majeure for termination in the event of an emergency over which neither party has control (also known as an “impossibility”) should be mutual and state that termination will be without a cancellation charge.
• Termination should be allowed for construction, change in management company or ownership, bankruptcy, conflicting booking/competitor, and unavailability of convention center or other facility.
• “Without liability” is often missing in these clauses.
Cancellation
• By the group. There
• Force majeure for termination in the event of an emergency over which neither party has control (also known as an “impossibility”) should be mutual and state that termination will be without a cancellation charge.
• Termination should be allowed for construction, change in management company or ownership, bankruptcy, conflicting booking/competitor, and unavailability of convention center or other facility.
• “Without liability” is often missing in these clauses.
Cancellation
• By the group. There
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
should be a sliding scale of charges as well as mitigation.
• By the hotel. The group should be made whole for its losses.
• The same clause should not include both the hotel and the group; issues affecting the group and the hotel are too different to have the same charges owed.
• Cancellation clause. Be sure to include one for your group or total revenue could be owed.
• Watch out for cancellation clauses that seek to recoup all revenue that the hotel would have lost; damages owed should be in terms of lost r
• By the hotel. The group should be made whole for its losses.
• The same clause should not include both the hotel and the group; issues affecting the group and the hotel are too different to have the same charges owed.
• Cancellation clause. Be sure to include one for your group or total revenue could be owed.
• Watch out for cancellation clauses that seek to recoup all revenue that the hotel would have lost; damages owed should be in terms of lost r
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
oom revenue only.
Americans with Disabilities Act
• Hotel should warrant its compliance.
• Specify the group’s obligations.
• State mutual cooperation in identifying needs.
• Each party should indemnify the other for violations by the indemnifying party.
• Beware of vague language and one-sided obligation for the group.
Dispute Resolution
• What method will be used — arbitration, litigation, or other?
• Which side pays attorney fees?
• In the event the hotel sues the group for collection of funds the grou
Americans with Disabilities Act
• Hotel should warrant its compliance.
• Specify the group’s obligations.
• State mutual cooperation in identifying needs.
• Each party should indemnify the other for violations by the indemnifying party.
• Beware of vague language and one-sided obligation for the group.
Dispute Resolution
• What method will be used — arbitration, litigation, or other?
• Which side pays attorney fees?
• In the event the hotel sues the group for collection of funds the grou
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
p owes, and the hotel wants to be reimbursed for its attorney fees, the hotel should be reimbursed only for attorney fees the hotel incurred to collect charges that the group does not dispute that it owes.
• Any dispute resolution should be at a neutral site.
Miscellaneous Issues that Occur During Meeting Planning
• Indemnification should be reciprocal and each party should be responsible for its own negligence.
• Insurance should be a mutual clause.
• The hotel should warrant the condition of the facility. It
• Any dispute resolution should be at a neutral site.
Miscellaneous Issues that Occur During Meeting Planning
• Indemnification should be reciprocal and each party should be responsible for its own negligence.
• Insurance should be a mutual clause.
• The hotel should warrant the condition of the facility. It
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
should be the same or better than at the time of the on-site visit or contract signing.
• The hotel should state its adherence to laws regarding fire, safety, and health codes.
• The hotel will usually ask that the laws of the state where the hotel is located will apply in the event of a dispute, as will venue and jurisdiction, but that may unnecessarily lock the group into traveling if there is litigation.
• The laws of which state govern the contract?
Closing Issues
• Can the contract be assigned to other p
• The hotel should state its adherence to laws regarding fire, safety, and health codes.
• The hotel will usually ask that the laws of the state where the hotel is located will apply in the event of a dispute, as will venue and jurisdiction, but that may unnecessarily lock the group into traveling if there is litigation.
• The laws of which state govern the contract?
Closing Issues
• Can the contract be assigned to other p
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
arties?
• How are notices to be given?
• Itemize all attachments.
• Merger clause. State that this contract constitutes the entire agreement and supersedes previous agreements.
• Changes can be only in writing.
• Severability. Is the contract enforceable if any provision is ruled unenforceable?
• Is a faxed document valid? It should be if the original is received within 72 hours of the receipt of the fax.
• What is the authority of the signatories?
• Signature information — name, title, group name, and date
• How are notices to be given?
• Itemize all attachments.
• Merger clause. State that this contract constitutes the entire agreement and supersedes previous agreements.
• Changes can be only in writing.
• Severability. Is the contract enforceable if any provision is ruled unenforceable?
• Is a faxed document valid? It should be if the original is received within 72 hours of the receipt of the fax.
• What is the authority of the signatories?
• Signature information — name, title, group name, and date
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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