Preparing for unexpected event costs
A contingency budget protects your event from unforeseen expenses like vendor cancellations, technical failures, or weather-related changes. Planning a realistic contingency reduces last-minute scrambling.
Common contingency items:
- Emergency vendor replacements (AV, catering)
- Weather-related expenses (tents, heaters, fans)
- Overtime labor charges and security
- Additional transportation or accommodation needs
- Permit or licensing unexpected fees
- Refunds or ticketing disputes
How much to set aside:
- For most events, reserve 10–15% of the total budget for contingency.
- For high-risk events (outdoor in bad weather months or complex productions), consider 15–20%.
Management tips:
- Track contingency use separately so you can analyze causes after the event.
- Negotiate vendor flexibility clauses (e.g., reduced penalties for rescheduling).
- Have backup plans for key elements—alternate AV suppliers, backup generators, or rain venues.
Clear internal protocols help too: designate who can approve contingency spending and under what conditions. That speed of decision-making keeps problems from escalating into larger costs.