Ask exhibitors why they use exhibitor-appointed contractors (EACs), and they quickly describe the advantages. "Our booth has many different components and putting it together is an intricate process," says Dawn Shields, Trade Show/Convention Administrator for Melville, NY-based NEC USA, who exhibits in eight to 10 corporate shows a year. At least two people at NEC's EAC are familiar with the booth and can act as lead men during set-up and dismantle. This speeds the process, helping to keep installation and dismantle (I&D) costs down. The EAC has offices throughout the country, with contacts in all the major convention cities. Shields also mentions that there is a "sense of reliability" that develops when you work with the same people over the years.

"To me using an EAC is synonymous with one-stop shopping," says Mike Dacey, Marketing Communications Manager for Elizabeth, NJ-based Hayward Pool Products, which exhibits in six to 10 shows annually. "When I make my selection as to who is going to design the booth, I make sure that the company offers some type of show services. Then if I need something, I have one point person to go to -- whether it's floral, electrical, or any of the myriad of different concerns that arise at a trade show. The EAC handles everything, including any paperwork. I've had the same lead person for the past five years. There's a comfort level. He knows the booth, and I know that he'll be here and that he'll get things done."

Exhibitors believe that EACs make their living from offering customized service and building good business relationships. They question whether general service contractors can offer the same level of service or show the same level of concern.

Show organizers also see advantages to EACs. "I think they have educated exhibitors and raised the quality of trade shows," says Kathleen Kaiser, President of Kathleen Kaiser & Associates, a show management firm based in Ventura, CA. "And without EACs, a lot of the shows I've done could not have been built in the time we had. With fewer days for move-in and move-out, you need that skilled labor on the floor."

Who's on my show floor?

With the proliferation of EACs comes a proliferation of people on the show floor. Instead of one contractor handling all I&D, there may be 15, 20 or more -- each with its own labor. Instead of one florist, there may be half-a-dozen. Add firms that provide audio-visual services, computer rentals, lighting installations and other work, and show managers say, "Hey, wait a minute! Who are all these people?"

To protect themselves against liability, show managers need to know who is on their floor. To achieve this, most require each exhibitor to complete a form listing all non-official contractors that will provide on-site services. Some shows require exhibitors to provide separate forms for each contractor. Typically, such a form asks for the name, address and phone number of the contractor; the name of the contractor's on-site representative; and the type of service the contractor will perform. Some require that the name of every individual working for the EAC be listed.

The forms, together with proof of general liability insurance and workmen's compensation insurance, must be provided by an established deadline. Most organizers set a deadline of 30 days before the start of the show, but some have 60- or 90-day-out deadlines. The latter seem unreasonable to EACs, who often find their clients making major changes right up to showtime.

Some organizers strictly enforce their deadlines, others offer some leeway. But they agree: If EACs haven't been registered ahead of time, they cannot get on the show floor.

Like other personnel, EAC workers must wear badges on the show floor. Some organizers simply provide exhibitors with enough exhibitor badges to cover the EAC workers they have registered. Others have EAC registration desks where each EAC must sign in before receiving special badges.

If a show doesn't ask for paperwork, some EACs tell their customers to draft letters informing the organizer that they're bringing in EACs. "It's a matter of courtesy -- and it's smart. You don't want the general contractor preparing labor that won't be needed," says Jim Murphy, Director of Sales for Renaissance Management, a labor management company based in Atlanta.

Legal and insurance issues

At the shows he produces, Michael Muldoon, President of Fairfax, VA-based Convention Management Group, has contracts with three groups: the facility, the general contractor and the exhibitors. "As far as we're concerned, if an exhibitor hires EACs, the EACs are part of the exhibitor's staff. And the exhibitor is obligating those people to behave according to the contractual obligations that the exhibitor agreed to when they signed the contract with us. The exhibitor is required to indemnify and hold us harmless, and to show evidence of a Certificate of Insurance. It is up to the exhibitor, then, to make sure that his own business affairs are in order with whomever he hires."

In contrast, a growing number of show producers now require contractual agreements between EACs and the shows themselves. Insurance liability is a primary reason for this step. Generally, shows are named as additional insured under EAC policies. One show manager recently found, for example, that such policies were not valid unless the EACs had signed contracts with the shows. Check with your insurance agent or attorney regarding your coverage and liability.

"Once the exhibitor tells us who its EAC is, we send the EAC a package that includes an indemnification form, a show contract and information pulled from the exhibitor manual that concerns them," says Richard Vendola, Vice President of Operations for A/E/C SYSTEMS International Inc., an independent show organizer based in Chadds Ford, PA. "We use the same contract that anyone exhibiting at the show has to sign. The indemnification form asks who the EAC will be working for, and who will be working on the show floor. We also ask for Certificates of Insurance, which we check by calling the insurance companies."

Some show producers may have their general contractor check the insurance. Not a wise step, says Kaiser. "You should take responsibility for it yourself. The contract is with you, not the general contractor. Besides, all you would be doing is running up the cost of your general contractor."

The emergence of fees

The administrative work involved in preparing and mailing materials to EACs, checking insurance, issuing additional badges and so forth is a primary rationale for EAC fees now being charged by some show producers. Based on an informal industry survey, it is estimated that about 5 percent of show producers are charging these fees -- a small percentage, but included therein are large firms that produce many dozens of events each year. "It has escalated," says Thomas Cassell, President of Convention All Services, an independent contractor based in Addison, IL. "I started here in Chicago approximately 3.5 years ago, and only one show charged a fee. Now about 13 or 14 shows that I work in Chicago have fees."

Some producers have minimal fees: $50 to $100 for each EAC regardless of how many clients the EAC is servicing. Others charge up to $500 per exhibitor based on the square footage of the booth. An EAC doing 20 jobs at such a show faces a significant expense. Some producers demand payment prior to the show; others bill after the show. Some bill the exhibitors; others bill the EACs. In the latter case, EACs bill most fees back to their clients. "If it's $100 to qualify my insurance, I don't pass it on to my clients. But any per-job fees -- such as one that charges 10 cents per square foot of exhibit space -- go to the client," says Cassell.

And the source of the expense is made clear to the client. "It's spelled right out: EAC fee," says Michael Seymour, National Accounts Manager for Dimension Works Inc., an independent contractor based in Elk Grove Village, IL.

Other factors are also used to justify the fees: the need to provide work areas on the show floor for the EACs, the creation of trash during set-up and dismantle, the need for security personnel, etc.

EACs are often dubious about this rationale. Many say that these costs are just part of doing business at an exposition. And they point to the Exhibit Industry Congress position statement on the issue, which says that "such fees should be based on an actual cost recovery basis, and not used to generate additional profits or penalize the use of exhibitor-appointed contractors."

"We view EAC fees as a cost of doing business -- if they are, in fact, true costs. If they are a hindrance put there to keep us from being in that show, then we take an unfavorable view, and we object," say David Arthur, Director of Planning at Nth Degree, a Stone Mountain, GA-based I&D and global event management company.

Fees for cleanup are a particularly sensitive issue. "Our argument is that there is going to be cleanup involved whoever does the work," says Murphy. "Trash removal is part of what the general contractor does when he is hired, and it should be in his pricing model. If we leave tape on the floor, then you can send us a bill. We try not to do that, but if it happens, we're perfectly willing to be accountable for any work we've created above what is normal."

Whether they are there as an independent contractor or not, the cost of cleanup still exists, say EACs. They suggest that clean-up costs be figured into booth rental costs or into the fees charged an association to put on a show. "The same holds true with security," says one independent contractor. "A convention center that has 50 doors needs 50 security guards whether or not there are EACs working on the show. We're not causing the need."

"We respect the show managers' right to run their shows for profit," says Scott Bennett, Director of Sales at Nth Degree. "But these charges need to be reasonable and fair. Everyone has to be very cognizant of the fact that when these fees are charged they are sent down to the customer in some way or fashion."

Lines of communication

Cassell, one of the industry professionals who spearheaded the original opposition to EAC fees, remains a leader in the search for alternatives. "He has approached us about a program he is proposing for the Chicago area, and our Board is investigating it," says Ellen Faist, Executive Director of the Exhibit Designers & Producers Association (EDPA). "We've really tried to keep the subject on the agenda. We want people to know it's still out there." Details about the program are not being released pending Board approval.

Another issue on the EACs' hot list is work areas. Some shows set up clearly defined work areas for EACs, where they can keep tools and from which they can call their labor. Some shows offer a more informal arrangement. "While bigger shows will delegate areas, in other shows we'll try to arrange something with the show manager or general contractor on site; typically, we'll stage a small work area in a spot on the floor that is not in anyone's way," says Murphy. Other shows expect or assume that EACs will set up shop in one of the exhibitors' booths. But this can interfere with installation and may make it difficult for clients (and show managers) to track down an EAC.

Otherwise, there don't seem to be any significant on-site issues. "For the most part, everyone works together in the customer's best interest," says Murphy.

"We've had good luck working with EACs, in part because we try to provide them with as much information in advance as possible," says A/E/C's Vendola. "There are three or four major EACs who do a lot of jobs at our show. We put them on our mailing list so that they receive our monthly exhibitor updates and show news. If there is a problem on site, it's typically because the person at the EAC's main office didn't pass along all the rules and regulations to the person doing the actual work. We just show the materials to the on-site person; generally, they understand."

Cassell lauds the organizers of the International Machine Tools Show. In February they held a two-day workshop for exhibitors. "Normally, just the general contractor and appointed suppliers, such as truckers and florists, are part of such an event. But they gave the Illinois Exhibitor-Appointed Contractors Association a 20-foot exhibit space, which enabled us to answer people's questions about EACs."

Savvy members of the industry -- whether they are show producers, EACs, general contractors or other suppliers -- stress that success in today's competitive marketplace depends on customer service. "It is to the show organizer's benefit to have people associated with him who are going to have that in mind," says Nth Degree's Arthur.

And the customer is the exhibitor. "They're the ones who are paying the bills," says Seymour at Dimension Works. "Without the exhibitors, you wouldn't have a show."

Sidebar: Short, but not so sweet