A verbal agreement is not a contract. In the lighting and AV business, equipment damage, last-minute cancellations, and scope creep are not hypotheticals — they happen regularly. A solid contract protects you and sets clear expectations for every client before the first cable is loaded.
What every lighting and AV contract must include
Every AV service agreement should cover the following at minimum:
- Scope of services: Exactly what equipment will be provided, how many crew are included, and what the deliverable is (sound reinforcement for 300 guests, stage lighting for a 4-hour reception, etc.).
- Event details: Date, venue address, load-in time, show time, and load-out time.
- Fees and payment schedule: Total price, deposit amount, deposit due date, and balance due date (typically 7–14 days before the event).
- Cancellation and rescheduling policy: What happens if the client cancels 90 days out vs. 2 weeks out vs. the day before.
- Equipment damage policy: Who is responsible if venue-caused power issues damage your gear, or if the client's guests handle equipment they should not touch.
- Force majeure: How acts of nature, venue closures, and similar events are handled for both parties.
- Liability limitation: Cap your liability to the contract amount. You cannot be liable for a client's consequential damages.
How to write a cancellation policy that protects you
AV operators hold dates — when you decline another booking for a client and they cancel, you lose real revenue. Your cancellation policy should reflect that. A tiered approach is standard:
- Cancellation more than 90 days out: Deposit retained, balance refunded.
- Cancellation 30–90 days out: 50% of total contract retained.
- Cancellation less than 30 days out: Full contract amount retained.
Rescheduling should be treated separately. Allow one reschedule with deposit transferred, subject to availability. A second reschedule or a date more than 12 months out may be treated as a cancellation.
Deposit and payment terms that minimize disputes
Require a non-refundable deposit to hold the date — typically 25–50% of the total contract value. Collect the balance 7–14 days before the event, not after. Collecting payment post-event creates leverage issues and late-payment problems. If a client refuses to pay the balance before the event, you have a problem you should know about before you load your truck.
Threecus can automate deposit reminders and balance due notifications so you never have to manually chase payments or wonder if a client has paid before an event day.
How to handle scope changes mid-contract
Clients frequently request changes after signing — a bigger room, a second location, added hours, last-minute extra equipment. Your contract should include a change order clause: any scope change must be submitted in writing, agreed to in writing, and priced before execution.
Never absorb scope changes silently. It trains clients to keep asking and devalues your work. Even small additions — one extra wireless mic, extending teardown by an hour — should generate a quick written amendment.
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