A Billboard Insider reader asks:

 I own an out of home advertising plant in an area which experiences tropical storms and hurricanes.  I was wondering how other OOH companies handle damaged vinyls due to storms.  Is it common practice for OOH companies to put clauses in their contracts stating that damaged vinyls from storms are to be replaced?  Over my career, I have replaced numerous vinyls that were damage by winds, but it would be hard to swallow replacing an entire plant’s worth of vinyls at one time from a hurricane. 

There are three approaches Billboard Insider has seen.  We’ve included sample ad contract for each approach.

Replace the vinyl at your expense and extend the contract for the number of days copy is damaged or destroyed.

One operator (in an area without many storms) says he tells clients that they will pay for the initial vinyl and that he will replace it if it’s damages by a storm.  He says this is a moot issue for clients who want to change their vinyl copy frequently because if the vinyl is damaged it’s probably close to time to put up a new vinyl.  Here’s the ad copy language.

Client shall pay the production and install costs for an initial vinyl.  If the ad copy is damaged or destroyed by fire, vandalism, wind or other cause, Operator will replace the vinyl for free and extend the term of the Sales Contract for the time the copy is damaged or destroyed.

Make the client pay for the production and install costs for the replacement vinyl and extend the contract for the number of days the copy is down.

The industry norm seems to be that the client pays for the initial vinyl plus any replacements from storm damage.  Other contracts are silent as to who pays for replacements although Billboard Insider thinks this invites conflict with a client.  Here’s language which makes sure the client knows they must pay for replacement vinyls.

Client shall pay for vinyl production and install costs including vinyl which is damaged by storm or fire.  In the event any display covered by this contract becomes unavailable, either temporarily or permanently, the Client agrees to accept, as compensation for the loss in advertising service, an extension of the contract term beyond the termination date equal to the period of advertising services lost.

Maybe you replace the vinyl for a client for free or not, depending on the relationship.

One southeastern billboard executive says this. “Do I replace storm damaged vinyls for clients for free even though my contract says no?  It depends.  It depends on the customer and it depends on the client relationship. It’s hard to make a blanket statement.”

What does your company do and why?  Take our poll below or email davewestburg@billboardinsider.com.  We’ll run a followup article.

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