Understand the Client and Contractor Relationship - Essay Example

TABLE OF CONTENTS Page: LO1 Understand external factors that affect planning and management in the event and contract sectors 1.1(P1)........................................................................................................................3 1.2(P2)........................................................................................................................3 LO2 Understand the operational issues which affect the success of event management 2.1 (P3)........................................................................................................................6 2.2 (P4)........................................................................................................................6 2.3(P5).........................................................................................................................6 2.4(P6).........................................................................................................................6 LO3 Understand the client and contractor relationship 3.1(P7).........................................................................................................................9 3.2(P8).........................................................................................................................9 3.3(P9).........................................................................................................................9 LO4 Understand the financial processes involved in tendering for and implementation 4.1(P10).....................................................................................................................10 4.2(P11).....................................................................................................................10 4.3(P12).....................................................................................................................10 4.4(P13).....................................................................................................................10 Main Characteristics of the Contract and Event Catering Sectors Public gatherings and events have become a part of modern day living. Ceremonies, functions, parties and celebrations are an integral part of our lives. A well organized and well managed event or function therefore fulfils the social, economic and cultural aspects of society. Managing an event in the right way can be quite a task and needs detailed and careful planning and execution. If carried out properly, the event/ceremony can get quite unmanageable and there might be unpleasant scenes and unruly people; thereby undermining the very essence of the event /ceremony or gathering. As such several a detailed analyses of the event, venue and budget should be prior to organizing the event. Both contract and event catering form different sectors of the hospitality industry. The word hospitality actually covers all aspects of the hotel and catering industry. It actually means that the guests and strangers be treated in a generous and friendly manner. Catering means offering of facilities to people, particularly the provision of food. Contract and Event Catering sector: Contract catering includes all services required to prepare and deliver meals to people working or living in different communities, public offices, private offices, schools, colleges etc. Whenever these services are deputed to a service provider, it is known as contract catering. In other words it is a legal agreement between the consumer and the caterer to supply food for a particular event or for a specified time. This ensures that better quality food is delivered to the consumer as the chefs understand the exact taste preferences of the consumer. Similarly, when service providers are hired to provide food for specific events like marriages, functions, get together(s) etc., it is known as event catering. The caterers are hired for events based on the menu that needs to be served to the guests. Event catering is a part of contract catering and event managers are hired to organize and plan the event as well as the menu. The menu is planned according to the taste of the guests as well as the event. The provision and consumption of alcohol must be carefully considered when organizing an event. Ineffective alcohol management, particularly irresponsible serving practices, can create risks for staff, event patrons and the public O’Sullivan & Longland (1999). There are mainly 3 types of event management, 1. Corporate Event Management 2. Product Launch Event Management 3. Special Event Management Characteristics: Contract and event catering has the following characteristics:- Services: the event contract should explicitly mention that what kind of services the event management body is going to offer during pre event, at the time of event and after the event. The terms of reference between the event mangers and principal organiser should be clearly stated. The division of job responsibility should be decided beforehand. Terms of agreement: All the receivables and payables from the both ends should be mentioned properly. The obligations and Run/Walk situations should be described. Fees: when and how much payment will be released should be written properly in the contract. For instance, first 30% payment would be made while signing the contract, second 40% will be made before the actual event takes place and so on. Waiver and termination: if any party fails to fulfil the promise made by him, then the contract for the event organisation will be waived off. Then the other part will not be liable to fulfil his promises. If any party wants to come out of the contract and want to terminate it, then provisions has to be there. In that case, the compensation should also be mentioned in the contract. External Factors Affecting Planning And Management In The Event And Contract Sectors (P2) Managing an event or contract catering requires a great deal of effort and careful planning and execution. A detailed analysis of the venue, type of event, no. of people invited and nature of the event along with the type of food required should be carried out by the organizers. Events are a workplace for some and a leisure activity for others and range from family days in the local park to musical events, festivals, firework displays, carnivals, sporting events, street parades, exhibitions etc. Cliath, (2012). PESTLE Analysis for External Analysis According to Yuksel (2012,) external factors can be analysed by analysing political, economic, social, legal and environmental components. While arranging an event, the organisation should consider the overall political situation in the country and the local area. Cause, some events can be politically sensitive. Managers should be aware of it and need to take adequate measures for it. Economy is one of the prime factors for any kind of major activity and event organization is no exception. If the overall economy is positive then everything gets positively impacted. If the economy is challenging like now then there will be constraints at every step. Budget becomes the major challenge to get anything done. It is true that if an event has more funds then the probability of making the event successful gets increased. Social is another important component. How does the overall society accept it or how far social involvement is there, are important. To make an event successful social acceptance, involvement and participation have to be there. Be it an event or any kind of other activities, everything should be according the legal structures. While organising an event managers should keep in mind that, there should not be any mistakes. All the activities should be abided by the law. Otherwise organisers can face trouble afterwards. Nowadays, environment plays a major role in business. Every activity in the event should be environmentally viable. The pollution level and carbon emission should be controlled. As much as possible eco friendly things should be used in the event. LO2 Understand the operational issues which affect the success of event management 2.1 Discuss the elements of project management which are necessary to ensure effective management of Events (P3) 2.2 Discuss the type and level of service associated with a variety of events (P4) 2.3 Assess the health, safety and hygiene problems which can affect the operational success of an event (P5) 2.4 Consider how marketing, human resources and quality control are applied in the organization and delivery of a successful event (P6) Elements of Project Management Which Are Necessary To Ensure Effective Management of Events There are some elements of event management. According to Reber (2008), Understanding the mission purpose or the point of organising is the first element of event management. Many a times organisers fail to understand the true purpose of the event. Organisers have to go beyond the simple concept especially in the case of special events such as fund raising programmes. Such kinds of events need special packaging and detailing. Public ceremonies have different and specific purposes. Proper resource allocation such as time and money is also important. Proper venue selection is another important element. The proper selection should consider the purpose of the event, convenience and other relevant issues. A detailed event management plan should be drafted. Managing the flow of event is the next important step. From the arrival, welcoming them, speeches, food and beverages and all the steps should go in the flow and the proper scheduling should be done. The success of an event depends on the proper matrix of the event. In the field of event management it is said the 90% of the mistakes are being done at the planning stage. Any event goes to next level if any emotional moment is being created. If at any moment the event grabs the attention of the audience then the event becomes memorable and successful. Generally people do not recall the entire event process but they recall some special moment’s incident. So these wow moments adds an extra flavour to the event. If the organisers want to convey any message to the guests or audience, then how the message will be given, has to be planned properly. Every guest should clearly know what his or her role or contribution would be in the long term, after the completion of the event. In most of the cases, events are continues process except any grand launch or really a special event. Otherwise a series of events are being organised. The organiser of the event should give stress on expandability or repeatability of the events. These steps are necessary to generate revenue and make the guests satisfied. Type And Level Of Service Associated With A Variety Of Events: There are end numbers of event being organised these days. But broadly there are three types of events, corporate events, product launch events and special events. In the case of corporate events, the services like exact agenda selection of the event, website creation, marketing material development, promoting them, inviting press, generating press release are offered. Simultaneously other services such as VIP handling, offering promotional products and corporate gifts, managing sales and exhibition, corporate communication, circulation of minutes and following up the event are the main services. Apart from these regular event management issues line food and beverage planning venue selection, transportation, and other services are also offered. When it is come to Product launch events invitee list should be selected carefully. For those the product launch matters all should be informed and invited. Services like Media handling, giving press release, gifts and others promotional actives, communication, online marketing, email marketing are also offered. Trade show support, sales boosters, arrangement of exhibition of the producers, case studies, consumers’ meet dealer, distributer and vendors meet and feedback collection from all are being done by the event organisers. If required it also takes the charge of advertisement publishing and promotional media coverage. Special events are versatile events different kind of activities are covered in special events. It can be awareness campaign about health or education. It can be communicative events, public events, personal events, promotional activities road shows and many more. In such cases services like theme planning food, beverage lighting, venue selection, guest invitation anchoring and many different kind of services related to different types of events are being offered. A high level of service is required by the clients/ consumers at any event or contract catering. In the absence of good services, the experience of the whole event does not turn out as good as the amount of effort which goes into organizing the event. Health, Safety and Hygiene Problems Which Can Affect the Operational Success of an Event While organizing events it is mandatory to take the health, safety and hygiene problems into consideration. Events cater to a large group of people who are either part of the event or enjoying the event as guests. Thus adequate measures are required to take into account the health, safety and hygiene problems associated with the event. Adequate security arrangements can be a major factor in the success of an event. A risk assessment of the event should be carried out to determine the type and level of security required. Ingress and Egress: The approach to the venue should be well marked from the parking areas and public transport points. Signs should also be put up in the traffic areas to indicate that a particular event is taking place so that there is no traffic congestion at the entry and exit points. The factors which are to be kept in mind are: Security: The security should be considered in relation to cash security, asset protection, crowd management and public safety by the event organizers. A professional, friendly and active approach to security will prevent confrontations and contribute to a positive atmosphere at the event. First aid and emergency medical services: The provision of first aid services and direct access for emergency ambulance and medical response services is critical for all types of events. First aid services should be in a clearly defined area and the officers should be able to easily communicate with the event manager, staff and security personnel. Emergency Procedures: It is important that an effective evacuation process and emergency action plan is essential for all major public events. It is advisable that a written plan be provided to all staff, police and emergency service personnel. Marketing, Human Resources and Quality Control Are Applied In the Organization and Delivery of a Successful Event Event management belongs to the services sector. So people and the skill of the people are the key components for the success of any event. Depending on the managerial skill, execution capacity, promotional and marketing capacity, an event gets successful. Proper human resource planning and marketing of any event is an important aspect of event management. So is the quality control of the whole event. In the absence of trained and skilled personnel it is very difficult to execute the whole event. Similarly marketing of the event is a very important aspect since the revenue generated by public events depends entirely on the marketing of the event. If proper promotion, marketing is not done then no one will get to know about the event. Media will also not cover the event properly. Then the whole purpose or organizing will get defeated. The money invested to arrange it will go waste. Through marketing only the arrangement and investment gets reciprocated with the help of business development. Proper marketing effort promotes a product or service that fills the needs and wants of the consumers and at the same time, bring profits to the organization (Tan, Tse &Wong, 2009). Quality control is one of the major issues. Poor quality goods and services cannot be delivered to the guests. The quality should be maintained at any cost. Unless, it gives a very image about the organisation and this is very harmful for the business. On the other hand good quality of goods and services will give increased volume of business more number of new and repeated customer and a better brand value. LO3 Understand the Client and Contractor Relationship 3.1 Assess the importance of a good client and contractor relationship to ensure successful contract catering (P7) 3.2 Assess the factors that impact the success of the contract and client relationship (P8) 3.3 Review the different types of contract (P9) Importance of a Good Client and Contractor Relationship to Ensure Successful Contract Catering In any industry it is important to have a good relationship between the client and the contractor. This is because if the rapport between the client and the contractor is not good, it is impossible for the contractor to understand the preferences and tastes and dislikes of the consumer. In the absence of such information, the catering for a particular event becomes an impossible task. This is because the nuances regarding the tastes of the client if not understood by the contractor result in poor event planning and management. Factors that Impact The Success of the Contract and Client Relationship: A successful client contractor relationship is mandatory for the success of any event/ outdoor catering. To ensure a successful relationship between the client and contractor it is important to keep in mind the following points. Both client and contractor need to take care of the following: 1) Review the proposal: It is important to understand and be aware of the terms and clauses of the contract so as to deliver the best services. 2) Interview and understand the client’s preferences and tastes: Utmost efforts should be made by the contractor to understand the preferences of the client and the particulars of the event so as to make the event a huge success. 3) Never assume: It is always better to ask and question the client about the arrangements and other considerations from time to time to deliver the best. 4) Keep reviewing the work: At every milestone achieved the work done should be reviewed so that the contractor is able to deliver nothing but the best. Short meetings with the client should be arranged from time to time to keep checking the work done. 5) Always be on time: Both the contractor and the client need to be extremely professional about the tasks they do. If the time allocated for sections of work seems a little ambitious and if the specifications regarding the assignment have changed the contractor should discuss immediately with the client. 6) Be professional: It is important to be professional in the approach rather than using the opportunity as a learning ground. 7) Sign off: Once the task is completed efforts should be made to get it reviewed by the client and take his confirmation. 8) Be friendly: It is important to be friendly and fit into the team; it can make the working environment a great deal better. Different Types of Contract: There are three main types of catering contracts: 1. Fixed price contract: This is the contract which is widely used in the industry as there is no uncertainty associated with this type of contract. The contractor charges a fixed sum of money in exchange for a specified service level. This kind of model works well for certain organizations while they prove to be highly rigid and costly for others 2. Cost Plus contract: In this case the contractor delivers a certain service level and raises invoices for all the operational costs along with a management fee. This is not a fixed contract and does not have any ceiling. Hence if the caterer fails to deliver the right services, the client organization settles the costs. 3. Profit and loss/ performance guarantee contract: This type of contract is also known as concession based contract. They present varying levels of risk and reward for the caterer and hence they are not widely used. LO4 Understand the financial processes involved in tendering for and implementation of events 4.1 Discuss the process involved in drawing up contracts (P10) 4.2 Assess the financial issues which affect the implementation of a contract (P11) 4.3 Discuss the process of business generation within contract and event management (P12) 4.4 Evaluate business success and achieving corporate targets in contract and event management (P13) Process Involved in Drawing up Contracts In any kind of business where services are being provided to an outside party, it is imperative to have a contract as it safeguards the interest of both the parties. A contract can be simply defined as an agreement between two or more parties which is intended to be legally binding (Miles, 1980). A contracted need not be a very complicated one. It could be written in simple language which is understood by both the parties. The process for drawing up a contract is as follows: 1) Get the contract in writing: All the terms and conditions pertaining to the contract should be clearly written down in the contract. 2) Read the contract carefully: The parties executing a contract should read and understand all the clauses and terms and conditions mentioned in the contract so that no breach of contract takes place. 3) Make multiple copies of all the contract documents 4) Use good faith while negotiating contracts: The contract should be written in good faith that is the contractor should understand that whatever he has agreed to do should be something which can be done. No fake promises should be made for achieving unachievable targets. 5) Mark the dates and timelines on the calendar: It is always a good idea to mark the important date and times for meeting deadlines on a calendar so that the planning and execution is smooth. 6) Ensure that the third parties perform properly and timely: It is important to ensure that the in cases of dependence on third parties for a project, their services are delivered on time. Untimely delivery of services by third parties causes unnecessary delay in projects. 7) Share contract information with those who need to know, and educate staff on the consequences of contract breach: The contract information should be shared with all the people who need to know the details so that no breach of contract takes place. 8) Resolve ambiguities as quickly and fairly as possible: Even after rendering the best services, sometimes problems may arise resulting in issues with contract. Such problems should be dealt with ethically and timely so that the problems get resolved amicably. Financial Issues Which Affect the Implementation of a Contract: For the successful implementation of a catering contract, it is important that finances are other resources are released timely. In case of any delay, the contract may get affected. Financial issues which may affect the implementation of a contract could be: Untimely release of payment for buying the necessary items Untimely release/ payment of wages for the people working in organizing the event Lack/Shortage of Funds Sudden increase in the price of raw material Thus it is always advisable to maintain sufficient buffer and plan the budget accordingly so as to get the project implemented successfully. Process of Business Generation within Contract and Event Management Like any other business event management also done to generate revenue or business. Business organisations go for contract management to maximise profit and minimise risk out of the contract. Summing it up, it can be said that contract event manager possess commercial technical and operational skills and bring desired result for the customers (Rajini Saudranrajan). If the standard of delivery is up to the mark, the further business can be generated with the help of word of mouth. A number of leads can be generated by showcasing the high quality service. Managers can contact the guests and the participants of the event for business generates. They can be delivered a brochure or a contact details for further communications. If it is sales and promotional event those through sales procedure business can be generated. During the creation of contract packaged deal of combined activities can be offered as combo offer. Generally good businesses are generated in this combo offers. For instance apart from event management the company can offer transportation, public relation activities or other such services. Business Success and Achieving Corporate Targets in Contract and Event Management Every activity is done with the objective to meet the organisational goal. It is also important to evaluate how fan an event is successful to meet the target of the organisation. The aftermath of the event or the fallout of the event is very important. Generally targets are preset by the organisation and if the criteria are met then it can be said that the target has been achieved. Generally some factors are considered such as how many guests have been arrives, if they were properly attended or not, the quality of food and beverages, what were the condition of overall event and how far the purpose of the event has been served? If it is an awareness campaign then how has it motivated participate are counted. If it is a sales promotional event then the sales figure is considered to analyse the performance. If it is properly delivered the organisers can get long term advantage. The guests, clients and participants will return back again. Every business grows with the help of repeat customers and event organisations are no exception. The business can spread through word of mouth. Conclusion From the above discussion it has been clear that contract in event management is a useful technique in event management, by this way profit gets maximised and risk gets minimised. Basically there are three types of events, corporate events, product launch events and special events. All these kind of events require different kind of services at different level. Event managers should give stress on the quality of goods and services. If the performance of the event management is satisfactory by the customers, guests and participants then chances are further businesses will be generated. Like any other business, the business of event management also survives with the help of repeat customers. As a result more revenue will also be generated. The event managers should keep communication with the guests and participants. References Allen, J., O’Toole, W., McDonnell & Harris, R. 2002, Festival and Special Event Management Wiley, Brisbane Baile Atha Cliath, 2012, Guide Lines for Event Organizers, Dublin City Business International Australia 1991, Developing Australia’s Tourism Potential Through Special Interest and Events Marketing: Consultancy and Research Assistance in the Development of Strategy for the Australian Tourist Commission, North Sydney Chiang, C. F., Back, K. J., & Canter, D. (2005). The impact of employee training on job satisfaction and intention to stay in the hotel industry. Journal of Human Resources in Hospitality and Tourism, 4(2), 99-118 J.P. O’Sullivan APM and Laurie Longland, 1999, Planning Guide: Event Management Hertz, David B. and Thomas, Howard. 1983. Risk Analysis and its Applications. Chichester: John Wiley & Sons. Karin G Pepping, How to have a Successful Client-Contractor Relationship, U.K Kerzner, H., 2006, Chapter 8, Special Topics and Chapter 18 Learning Curves, Project Management – A Systems Approach to Planning, Scheduling and Controlling, John Wiley & Sons, Inc., New York Marius Kloppers, 2005, HEALTH, SAFETY, ENVIRONMENT AND COMMUNITY MANAGEMENT STANDARDS, BHP Billiton HSEC Management Standards, Issue No 3 Miles, Derek. 1980. The Small Building Contractor and the Client. London: Intermediate Technology Publications. Page 225. Reber J, (2008), the seven elements of successful event management, available at http://jamesreber.com/ProducingEvents/ElementsSpecialEvent.html. 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