What to Include in a Production Contract Before Filming a Movie Project

Whether you are a small production company or a small business wanting to have a short commercial produced, filming a movie project involves ‘lights, cameras, and a contract.’ Before any filming can start, a production agreement must be entered into between the production company and the client. Here a few key provisions to consider when drafting a production agreement for your movie project:

Budget – A film budget is a maximum amount the client is willing to pay for the movie to be produced. This includes equipment rentals, location rentals, actors’ compensation, special effects, etc.

Royalties – When producing a short film, the client may not have the money to pay the production company the entire fee for their time and expertise. In such case, the production company will settle for a portion of the fee up front and the rest to be paid in royalties. Royalties are a percentage of the profit from the film to be paid to the production company. For example, each time a copy of the film is sold, a portion is given to the production company. Royalties are not recommended for producing a short commercial since profits are not directly traceable to the ad.

Minimum Time Requirement – The minimum time requirement refers to how much time per week the production company is required to work on the project. This time may vary based on the production company’s availability; however, clients typically expect the company to spend a minimum of 40 hours per week on their film.

Timeline / Key Dates – Clients often need an advertisement to be completed before the start of a marketing campaign. Deadlines and key dates are set so that the movie project is finished on time and ample time is given for any revisions.

Ready to start filming? Fill out this production agreement template. It will guide you through each part of the contract so that you can get shooting faster.