Production offer

Each offer is based on the agreed PIBS, completed by the Communication agency, unless stated otherwise. In case of any changes to PIBS made after its submission to a Production company, Production company will be notified and will have the right to adopt changes into their submitted offer.

One has to emphasise the fact that at this stage – it is particularly difficult to make an accurate estimate, covering all elements of production If a ‘recce’ or supplementary research is needed to make a precise and accurate offer, the Communication agency will cover the costs associated with the research work.
A production offer is complete only when the costs for preproduction, production and postproduction (visual and sound mounting) have been included in the final offer.

The Production company is free to choose its subcontractors (suppliers and/or employees) so that the director and the Production company can make appropriate creative choices in order to deliver the commercial film in the best quality based on the agreed approach.

All offers indicate the period when valid for at a given offer price, subject to the condition that supplementary costs will be charged for unforeseen circumstances. Any extra costs will be discussed with the Communication agency.

The Production company and the Communication agency will agree beforehand on measures that have to be taken in case of any exchange rate fluctuations.

Once the Communication agency has received comparable competitive offers, the following rules apply:

  • Each offer will be handled in a strict confidential manner and no details of the offer proposed by any participating Production company will be under no condition communicated to the competitors.
  • The Communication agency will evaluate each offer taking into consideration all relevant factors – not only the price – before making its decision (e.g. number of shooting days, locations, actors/models, etc.)
  • The TV-producer will present all offers to the Advertiser altogether with the “preferred” Production company that the Communication agency recommends.
  • In case there is a significant difference between the final offer and the original estimate, the reasons have to be specified.
  • After a consultation between the Communication agency and the Advertiser; a period of maximum five days will be available for the final briefing and discussions between the Communication agency and the Production company to agree the final contract budget price.
  • The final details of the contract are defined before the production starts in order for the awarded Production company to obtain a confirmation in writing before money are being spent.
    • The Communication agency will submit to the Advertiser together with the offer(s) of the Production company an estimate for any supplementary costs.
    • The details of the production schedule for the commercial will have to be confirmed with the Advertiser and the Communication company will indicate any changes to the agreed schedule that may arise.
    • When the Advertiser awards the project to one of the presented Production companies, the Communication agency will confirm the project award to the Production company in writing in a form of a purchase order.
    • The Communication agency will also inform the other participating Production companies of the result of the pitch as soon as possible.

The participation to a pitch is rather costly for a Production company (compensations for visual researchers, copywriters, lay-outers, graphic artists …) therefore situations where the production – after having completed the pitch – will be cancelled for all Production companies in the pitch, are to be avoided.


** Document 3: Production Estimate – Download Here