UNIT OF COMPETENCY:DEVELOP BUDGETS,

CONTRACTS, PERMITS AND LICENSES

___________________________________________________________________

BUDGETS, CONTRACTS, PERMITS

AND LICENSES
Learning Objectives:

1. Discuss the importance of developing budgets

2. Identify budget items common to event
3. Calculate and Project an event’s budge.
BUDGETS AND CONTRACTS are the backbone of any event. Budgets
must be aligned with the organization’s or client’s financial goals for the
event. The final budget is mutually agreed upon by the client and event
organizer. The contract seals and binds both parties with this agreement.
 BUDGETS
Represents an action
plan that each successful
event plan must carefully
develop. Event planner
should use the expression
“staying within the
budget” everyday and for
every project.
 FINANCIAL PHILOSOPHY OF THE
EVENT
1. Profit – oriented events. Revenue
exceeds expenses.

2. Break-even events. Revenue is

equal to expense.

3. Loss Leaders or hosted events.

Design from the very beginning to
lose money. These events usually are
organized for the purpose of
promoting a cause or agenda.
BASIC PARTS – REVENUE, EXPENSE and PROFIT.

• Revenue – refers to the earnings from the event.

• Expense – refers to payments made for goods and services used for the
event.
• Profit – represent a surplus.
 formula
REVENUE – EXPENSES = PROFIT
 IMPORTANT ITEMS IN THE BUDGET

1. VENUE – the expenses incurred at the site are covered here. These include costs for the
needed structures, function room rentals, and accommodations for the VIP guests, speakers
and staff.
2. PROGRAM – expenses for the delivery of the program such as sounds and lights, fees for
performer and speakers, design and equipment needed for staging.
3. MARKETING – marketing plan such as advertising, public relations and promotional materials.
4. MEALS – these are expenses for the food and beverage served to the guest and organizers.
5. STAFF/PRODUCTION CREW- Salaries and fees of the organizing team and other contractual
workers designated for the setup, registration, and ushering are all considered here.
6. TRANSPORTATION – expenses that provide transport services.
7. LICENSES and PERMITS – permits and licenses in organizing the event from government
agencies.
8. ACCOMODATIONS – host usually provides shelter for the speakers and other related guests.
9. PRODUCTION and STAGING FACILITIES – lighting fixtures, sound system, LED walls, camera,
and other technical requirements.
10. FEES – performers/talent, speakers
11. SECURITY – expenses in hiring police, security guards, bouncers and marshals
12. CONTIGENCIES – should be prepared to protect people, property, proprietary information,
financial investment and reputation. It is normally from 10-201% of the total cost.
 7th Birthday Budget
VENUE – ROYAL CLUB HOUSE P 20,000 FIRST 4HRS/ P 28, 000
5,000 (SUCEEDDING HR) +
12% VAT

MEAL PACKAGE A BUFFET DINNER LUNCH P P 50, 000

ADULT/CHILDREN= 250 x 200 , VAT
inclusive
LIGHTS AND SOUND P 5,000 P 5, 000

ENTERTAINMENT (CLOWN & P 10, 000 (3 HOURS PERFORMANCES) P 10, 000

MAGICIAN)
SWEET BUFFET P 12, 000 P 12, 000
GAMES PRIZES P 2, 000 P 2, 000
MC TALENT FEE P 3, 000 P 3, 000
PHOTOGRAPHER P 10, 000 P 10, 000
PHOTO BOOTH P 5, 000 ( 100 SHOTS) P 5, 000
SUB TOTAL P 125, 000
MANAGEMENT FEE 10% P 12, 500 (137,500)
CONTINGENCY 15% P 31, 250
TOTAL P 168, 50. 000
HOSTED SEMINAR EVENT
150 PARTICIPANTS
PROGRAM TIME: 8:00 AM – 2:00 PM

VENUE –PICC FORUM 1 P 47,000 FIRST 4HRS/ P 78, 960

11, 750 (SUCEEDDING HR) +
12% VAT
MEAL SNACK P 183 x 180 P 32, 940
LUNCH P 450 x 180 P 81, 000
VAT inclusive
SPEAKERS HONORARIUM 3 SPEAKERS / P 10, 000 P 30, 000

MARKETING AND P 30, 000 P 30, 000

COMMUNICATION
SOUVENIR PROGRAM 120 X 180 P 21, 600

REGISTRATION TECHNOLOGIES P 25, 000 P 25, 000

MANAGEMENT FEES P 50, 000 P 50, 000 (349, 500)

CONTINGENCY 15% P 52,425

TOTAL P 401, 925

SAMPLE COMPUTATION OF PROFIT ORIENTED EVENT per attendee
MEAL AM P 3,000
Snack/Lunch/PM Snack
@ P 1, 500 x 2 days
Hand outs 100 pages plus 150
binding
Souvenir Seminar bag, ball 500
pen, note pad ID,
Lanyard
Production cost 100
Fixed Cost 2,000
Sub total P 5, 750
Mark-up (30%) 1,725
Suggested price P 7, 475
Add 12% Vat P 8,372

P 8, 372 is the registration fee of this event

RMD Events is the organizer of the “In Focus: Molecular Gastronomy”, two- day
a live – in seminar – workshop set for five months from now, March 21 to 22,
2020. Because of the nature of the event, it will be open to a maximum of 80
participants. The event budget lists the following costs:

•Complete meals (Breakfast, snacks, Lunch, Snacks, and Dinner) per participants
per day cost Php 1,200 exclusive of 12% VAT.
•An overnight stay in the hotel for 2,500 pesos net per person
•The seminar room that cost of Php 35, 000 for two days exclusive 12% VAT,
includes basic audio-visual equipment and set- up. With a seating capacity of
100 seats.
• four seminar facilitator , each facilitator fee is Php 10, 000
•The seminar – workshop kit cost Php 3,000 per participants.
•RMD Management fees for the whole event is Php 70, 000
•Secretariat budget is Php 10,000.
•Contingency of 10%
•The desired profit will be 20%.
MEAL P 1,200 x 12% x 2 days x 80 pax
ROOM ACCOMODATION P 2, 500 X 80 pax
SEMINAR ROOM P 35, 000 X 12% X 2 DAYS
SEMINAR FACILITATOR P 10, 000 X 4 PAX

WORKSHOP KIT P 3,000 X 80 PAX

RMD MANAGEMENT FEE P 70, 000

SECRETARIATE BUDGET P 10, 000

CONTIGENCY FUND 10%

SUB TOTAL

PROFIT 20%

TOTAL

12% VAT

GRAND TOTAL
•Compute for the total expenses of the said event.
•How much will be the desired profit?
•How much is the registration fee per participants
with VAT?
.
 UNIT OF COMPETENCY:DEVELOP BUDGETS,
CONTRACTS, PERMITS AND LICENSES
___________________________________________________________________

BUDGETS, CONTRACTS, PERMITS

AND LICENSES
Learning Objectives:

1. Discuss the importance of developing budgets

2. Identify budget items common to event
3. Calculate and Project an event’s budge.