12 Hidden Costs in Venue Contracts for Corporate Events

The right corporate event venue is more than just comparing the rental fees. As the organiser, you should be aware that there are hidden fees that come with renting event venues. If you hire corporate event planners, they usually know about this stuff, but if you’re planning to organise the event in-house, you should know the hidden fees to look out for.

In this article, we’ll list some of the hidden costs in venue contracts for corporate events.

1. Service Charges and Administrative Fees

One of the most common hidden costs of event venues that are often overlooked is service charges and admin fees. Usually, these are included in the catering services, equipment rental, beverage packages, and other event services, which end up being the reason for an increase in the final bill. So, when you look into the quotation, always confirm that these charges are already included.

2. Catering Minimum Requirements

Most of the time, when the venue is tied up with the catering, there’s a minimum spending requirement. If the attendance is lower than the capacity or expected, the food consumption can also be lower, which can create an unexpected cost.

On the other hand, there are also instance that when you don’t avail of the catering services that come with the venue, there might be added taxes.

3. Overtime Charges

Corporate events often run beyond the expected schedule, due to various activities such as networking, extended presentations, longer setups, and late arrivals. So, even if you’re not anticipating a later end of the event, you should know the rate of the overtime fee, so that you can include it in your additional budget.

4. Setup and Breakdown Fees

Most event venues also offer venue setup and teardown packages, but some are billed separately. So, during your initial consultation, make sure to clarify if the setup and breakdown fees are already included in the rental fee or not. If not, you have the option to hire them or look for a third-party logistics team.

5. Audio-Visual Equipment Costs

Nowadays, audio-visual systems are required in corporate events, which are often available in venues. However, make sure to check the basic inclusion fee and the separate charge. For instance, the equipment included in the venue rental is a microphone, a small speaker, lights, and LED screens. You need to pay additional fees if you need more items for the event.

6. Internet and Connectivity Charges

Modern corporate events are often hybrid, allowing participants to attend from wherever they are. This is why there should be a reliable internet connection in the venue with higher bandwidth, wired and wireless connections, and other options for connectivity. Additional utility costs include air conditioning, electricity usage, lighting, and generators.

7. Vendor Restrictions and Exclusive Partnerships

Some venues already have partner vendors, and they limit or don’t allow third-party vendors to be at the venue. In some cases, if you decide to hire other vendors, you might need to pay additional fees. Of course, you should know about this from the start, so that you won’t be surprised by the additional fees.

8. Security and Staffing Requirements

Depending on the size of the event, some venues require additional staffing, including attendants, security, parking, coat checking, and cleaning crews. And more often than not, these additional staff are billed separately. For instance, there’s a basic number of staff that’s included in the basic rental fee, while you just need to pay more if you need more staff for the event.

9. Parking and Transportation Expenses

Some venues don’t include the parking in their breakdown, so you might need to pay for it separately. Although you can make your guests pay for parking, it can also affect their overall experience. And even though the parking fees may not be as expensive, you should still take them into account when planning your budget.

10. Damage Deposits and Insurance Requirements

Aside from the actual bill, some venues also require deposits that can later on be returned. It’s a reasonable ask, so that they won’t have any problems when something gets damaged or broken. However, as the event organiser, you should know about this in advance, so that it won’t mess up your entire budget.

11. Cleaning and Waste Disposal Fees

Whether you have a team to handle the cleaning after the event, there might still be some cleaning and disposal fees. This is because they’ll still be handling the disposal of the garbage to the designated place, so make sure everything’s clear about this.

12. Cancellation and Rescheduling Penalties

Cancellations and rescheduling often have penalties, so make sure to check the contract for the strict cancellation clause. Usually, there’s a deadline for free cancellations and rescheduling, and once it’s up, the fees can get higher as the event date comes closer.

Final Thoughts

The venue’s rental fee may not be everything you need to know. You should also look into the hidden costs as they can later on mess up with your budget. So, it’s best if you can have an initial consultation when you get to ask everything you need to know about the hidden fees.