Payments and cash-flow coordination
Event client-funded procurement model
The organiser wants to pay the venue and AV supplier directly, while the project lead coordinates them, and nobody has said who is responsible for what.
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The short answer
In a client-funded procurement model the organiser contracts with and pays suppliers directly, and the project lead coordinates the work without handling the money. The risk is that coordination and payment responsibility blur.
Write down, for each supplier, who signs, who instructs, who receives the invoice, who approves payment and who pays. Whether the model suits you, and how it is documented, are questions for your finance and legal advisers.
Two common models
| Question | Client-funded (organiser pays directly) | Project lead pays and re-bills |
|---|---|---|
| Who signs the supplier contract? | The organiser. | Depends on what is agreed and documented. |
| Who pays the supplier? | The organiser. | The project lead, then charges the organiser. |
| Who holds payment risk if a supplier fails? | The organiser, under the supplier contract. | A question to settle in writing with advisers. |
| What does the project lead do? | Coordinates, checks and recommends. Does not commit the organiser's money without approval. | Also handles supplier invoices, subject to the arrangement. |
| Cash-flow effect on the organiser | Pays on supplier dates, directly. | Pays on the date agreed with the project lead. |
Why organisers choose the client-funded route
- Finance wants direct control of payments and supplier records.
- The organisation's policies require its own purchase orders.
- Some suppliers already have contracts with the organiser.
- The organiser wants to see supplier invoices without a middle layer.
What the project lead can and cannot do
The project lead can brief suppliers, collect quotations, compare them, prepare purchase order requests, check deliveries and chase invoices. All of these support the organiser's decision.
The project lead does not commit the organiser's money, change a contract or approve a payment unless the organiser has given that authority in writing. Say so in the scope of work.
Set the responsibilities in writing
- List every supplier and note who signs its contract.
- For each, state who may instruct day-to-day changes and who must approve any change in cost.
- State who receives invoices, who matches them against orders and who approves payment.
- Agree the payment dates in the payment milestone tracker.
- Agree what the project lead does if a supplier does not deliver, and who decides on remedies.
- Put it into the scope document and have your legal adviser review the wording.
Keep funding clean
Client funds go to suppliers against approved orders. Any money from sponsors or ticket sales that is pending is not available until it is received, so show it separately in the cash payment schedule.
Questions about tax treatment, who is the principal in a transaction or how fees are described belong with your accountant and legal adviser.
Worked example · Fictional example
A forum where the organiser pays suppliers directly
Fictional organisation and figures, illustrative only.
Persatuan Fiktif Pengurus Sumber Manusia holds a two-day forum with a venue, an AV supplier and a caterer. The association's treasurer wants all payments to come from the association's own account, against its own purchase orders.
A responsibility sheet is agreed. The association signs all three contracts. The project lead briefs and coordinates the suppliers and checks deliveries, but cannot approve variations. Invoices go to the treasurer, with a copy to the project lead for matching. The treasurer approves and pays. A sponsor's RM 20,000 pledge is shown as pending, not as available cash.
Use this yourself
Supplier responsibility sheet
Copy this table and complete one row per supplier before any order is placed. Have your finance and legal advisers review it.
| Supplier | Contract signed by | Day-to-day instructions from | Cost changes approved by | Invoice received and matched by | Payment approved and made by |
|---|---|---|---|---|---|
| Venue | Association president | Project lead (no cost changes) | Treasurer | Treasurer receives; project lead matches | Treasurer |
| AV supplier | Association president | Project lead (no cost changes) | Treasurer | Treasurer receives; project lead matches | Treasurer |
| Caterer | Association president | Project lead (no cost changes) | Treasurer | Treasurer receives; project lead matches | Treasurer |
| Project lead | Association president | Conference owner | Treasurer | Treasurer | Treasurer |
Handle it in-house, or bring in help?
Your team can usually handle this when
- Your finance team already pays suppliers and wants to keep doing so.
- You have a small number of suppliers and a named coordinator.
- Authority and approval limits are already documented.
Outside planning help earns its fee when
- Coordination spans many suppliers while payments must stay with the organiser.
- It is unclear who may instruct or approve changes and cost.
- Pending income and committed payments are being mixed in one number.
Need the coordination without the payment role?
A conference project lead can coordinate your suppliers while payments stay with your organisation: draw up the responsibility sheet, prepare order requests, check deliveries and match invoices, then pass everything to your treasurer for approval. Contract signing and payment decisions remain with you.
Questions organisers ask
Does a client-funded model mean less work for the project lead?
Not necessarily. The coordination work is similar. The difference is that the organiser holds contracts and payments.
Can the project lead sign a supplier contract for us?
Only if you give written authority. Ask your legal adviser how it should be documented. Many organisers prefer to sign themselves.
What if a supplier asks the project lead for payment?
Refer them to the invoice process: invoices go to the named person at the organiser, and payment follows approval.
Does this affect tax?
It may. Ask your accountant how the arrangement should be treated; this page does not state any tax position.
Related resources
Content record: Draft. Written from the cited sources and checked by automated rules; not yet independently reviewed.