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Does EY GDS provides relocation allowance?
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None has reached my desk yet but this for sure is going to be a thing. NPR ran a great story yesterday on Marketplace concerning commercial activity in the Port of Los Angeles. You wouldn’t know it based on the administration’s pronouncements but I doubt there will be any industry left untouched - most — except for makers and distributors of hand sanitizer, masks and Clorox wipes — for the worst. Send those FM notices early and often and get with your insurance brokerage for help with business interruption coverage issues.
This is looking very bleak for tourism/live events market
Tailspin. And I’m in live events.
In house, we’ve already established task forces to address, we’ve been making claims, but haven’t received any from our supply base yet.
Yep, the conference event venue has been appropriately prepped by their corporate counsel on the position that they do not see this as a FM event. They have been very accommodating with offering rescheduling at no fee. We will see how this goes...
Venues have indeed been well prepared already, and we’re getting similar responses — you can reschedule but you can’t cancel without a penalty. Consider looking at what’s happening with the South by Southwest festival (not refunding tickets for individuals). Going forward, I’m not sure if I want to specify “pandemic” in the FM since the uncertainty is actually helping us in other contexts — where we are in the position to say it isn’t a FM to our service providers.
Not yet, but preparing for it. Reviewing vendor and customer agreements very carefully to determine what actions might and might not be fm.
Other than having to get every FM clause for every contract over $10mm in 8 hours notice (roughly 45 for my division) because Group CEO was announcing FY results next morning...no. The poor National GC had to collate all CLO responses and send to Group GC who had to collate National GC responses. I’m sure that was a bit of a cluster. Otherwise, just been an ordinary week.
Working on several.
Yep have seen it come up quite a bit. It is a poisoned chalice often with wider termination rights and how to deal with pre-payments
Oooo can you give a little more insight? What do you mean poisoned chalice - (yes I’ve read Macbeth). I’m dealing with prepayments as well and trying to lock sponsors in if an event is postponed but returning funds for cancelations
Update to comment above. Since the situation has progressed so rapidly, event venue happily let us cancel under force majeure, bc we offered to reschedule for 2021 and pay deposit (in the amount of cancelation fees) in 2020. I think this was the best outcome for both parties. Crazy how many industries are being hit so hard right now.
I have received termination letters which we are consistently opposing as our FM clause exempts Customers duty to pay (we are a professional service organization). We have agreed to reduce or suspend services to maintain customers. I was also instructed to send rent abatement letters for all of our lease locations claiming FM. Fun times.
Yes, as well as application of liquidated damages clauses.