An event-services contract — the staging of an event by a producer, a technical team or an agency — rests in Georgia on the norms of the works contract: the agreed work must be performed, the law sets a special regime for estimate overruns, the client's refusal is followed by compensation of damage, and the contractor even holds a right of pledge. On this page we explain how these five norms operate in the event business.
The Concept and Estimate Overruns
By the works contract the contractor undertakes to perform the work provided by the agreement, and the client must pay the agreed remuneration — in event organization this covers every agreed deliverable, from building the stage to receiving the artist. The estimate is the heart of an event budget, and the law sets two rules here: where the contractor significantly exceeds an approximate estimate, he may claim only the agreed remuneration, except where the excess could not have been foreseen in advance. And of an increase that could not have been foreseen at the conclusion of the contract, the contractor must immediately notify the client; where the client terminates the contract because of the increase, he must pay for the work performed according to the approximate estimate. This means that an unexpected increase — rising prices, a change of equipment — requires informing the organizer, and an excess left unreported remains on the contractor. The estimate should be fixed in the contract in writing, and its type — final or approximate — determined in advance, because precisely this determination decides who pays the overrun.