ASK & DISCUSS INDEX

5 years, 6 months ago - John Lubran

There is no broadly generic contract for corporate films. Far too many variables.

A good starting place is with written requirements of both parties that can then be as numbered schedules to an agreement.

What does the client want and how specific are they?

What is the agreed budget?

Who owns the material recorded other than the completed works?

Are there any specific requirements about technicals and formats?

What are the time schedules for delivery?

What resources and contributions other than money will the client provide?

What is the schedule of payment? Typically we require such a schedule that minimises our risk, such as half on agreement if it's very low budget (under £3,000) and half on delivery, or for bigger budgets a third or a quarter up front, another third or a quarter after completion of principle recording and filming ( variables might occur if the filming phase is especially costly due to travel or talent fees etc.. The remaining budget payment, less 10%, after principle post production is accepted and the final 10% upon delivery of distribution masters.

A 10% to 15% contingency sum ought to be factored in to be released by mutual agreement.

Penalty clauses are often not worth the paper they're printed on because of the subjective nature of satisfaction. As the producer you retain conciderable safeguards against risk by ensuring that you have sufficient budget up front before each stage of production. Client is not entitled to anything until final payment is agreed.

With bigger budget projects, such as more than £50,000 or where especially delicate issues are involved, that's when lawyers might need to be involved.

Other realities are available.

5 years, 6 months ago - Marlom Tander

What John said. Esp about "penalty clauses". Penalty clauses are generally UNENFORCEABLE under English law.

For small scale stuff (for a client who understands what's involved, and has told me to work to a fixed budget. What I don't spend, is my profit. If I overspend.... I never overspend), I've normally done 50% up front, balance on delivery.

TBH your key area to make a judgement call is whether or not your client understands what you plan to deliver. A mismatch there is what leads to disputes, and you being out of pocket or in court. This isn't about them saying "yes" to everything, it's about you being sure that they understand what they are saying yes to.

As a rough rule - if you think that there is any chance of a mismatch between what you're selling, and what they think they're buying, make sure you have the money for all third party costs in advance. Or as close too as possible. (In my 50% days, I usually had to float 20% at my risk, pending the final tranche. But that was OK because we understood each other).

5 years, 5 months ago - Silvia Schmidt

HI Dickie,

I missed this when you first posted - let me know if you still need any help with this (I'm a qualified lawyer as well as a doc filmmaker)!

Best wishes
Silvia