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"Production Fringe"

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Chris Anderson
"Production Fringe"
on Oct 5, 2008 at 11:34:57 pm

Has anyone heard of the term "production fringe"?

I'm re-evaluating how I do my estimates and someone sent me an example which included a line item called "Production Fringe" which covered whatever and was around 10%.

I usually just mark up all the line items and present only the important details in the estimate. I think presenting something like "fringe" is similar to "Dealer Fees" and can be subject to client questioning.

However, I'm very curious of what other people write and expect to see.

My projects are pretty much non-broadcast corporate work.

thanks,
Chris






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walter biscardi
Re: "Production Fringe"
on Oct 6, 2008 at 12:18:46 am

It's a contingency fee and that number is usually 10 to 20% of the budget. Covers any unexpected costs or overruns caused by the client or unforseen circumstances.

I don't generally show that number in the budget, I just have a clause that states the client is responsible for any overruns caused by their changes, delays or unforseen circumstances.

Walter Biscardi, Jr.
Biscardi Creative Media
HD and SD Production for Broadcast and Independent Productions.

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Mike Cohen
Re: "Production Fringe"
on Oct 6, 2008 at 12:56:08 am

We include a project management fee, which covers some overages and unforseen delays and overall management of the workflow, clients and non-billable time.


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Chris Blair
Re: "Production Fringe"
on Oct 6, 2008 at 2:04:29 am

We call it a contingency fee and typically add 3-5% to the total estimate to cover unexpected costs or overruns. 10% sounds kind of high to me, but maybe I'm just behind the times. I do know our estimates are uncanny in their accuracy, typically coming within a couple hundred dollars one way or the other when it's all said and done.

We also occasionally have projects where we estimate high, and the project goes very well and we come in way under budget. We typically give the client a small break so they feel like they're getting a good deal, (but not too big), but those projects offset the handful of projects where we miss the mark and estimate low.



Chris Blair
Magnetic Image, Inc.
Evansville, IN
http://www.videomi.com


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David Roth Weiss
"Production Fringe" doe not equal contingency
on Oct 6, 2008 at 5:42:18 pm

Sorry to come to late to the table on this one, and sorry to disagre with everyone, but "fringe" is not the same as "contingency." As you will see below, Fringe in a line item budget refers to payroll taxes, othgewise know as "fringe benefits.". Checkout the ShowBiz Labor Guide, for reference at http://www.buyepi.com/updates/files/FringesUpdate_07-08.pdf See page number one below.

FRINGE RATES
INTRODUCTION

Fringe rates refer to the employer's share of payroll taxes which include social security (FICA), state unemployment insurance (SUI) and federal unemployment insurance (FUI); property damage and public liability insurance; workers' compensation insurance; and where applicable, vacation and holiday pay and contributions to pension and welfare funds.

Generally, the fringe rate is determined as a percentage of the employee's gross wages and paid directly to the appropriate
tax agency, insurance carrier and guild or union trust fund.
2008 PAYROLL TAXES Paid by employer on behalf of employee in addition to gross wages.

Employer Contribution Percentage 2008 Ceilings
Federal Payroll Taxes (OASDI) 6.2% 102,000.00
Federal Payroll Taxes (Medicare) 1.45% None
Federal Unemployment Insurance .80% 7,000.00
State Unemployment Insurance Varies* Varies*
* State Unemployment varies dependent on employer (payroll service) and state. Contact your payroll service for rates.

David Roth Weiss
Director/Editor
David Weiss Productions, Inc.
Los Angeles

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Chris Blair
Re: "Production Fringe" doe not equal contingency
on Oct 7, 2008 at 12:20:15 am

Well that makes sense doesn't it! In 25 years I've never heard or seen that term on a budget or estimate.



Chris Blair
Magnetic Image, Inc.
Evansville, IN
http://www.videomi.com


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David Roth Weiss
Re: "Production Fringe" doe not equal contingency
on Oct 7, 2008 at 12:58:43 am

It's a union thing Chris, so you would in fact find it as a line item on any budget adapted from a Hollywood or New York film or TV line item budget, and most likely any commercial budget from L.A.,N.Y., and Chicago.

You see old dogs can learn new tricks. You should feel good now, I know I do when I learn new stuff. BTW, I've got you beat by several years...

David

David Roth Weiss
Director/Editor
David Weiss Productions, Inc.
Los Angeles

POST-PRODUCTION WITHOUT THE USUAL INSANITY ™


A forum host of Creative COW's Apple Final Cut Pro, Business & Marketing, and Indie Film & Documentary forums.


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Chris Blair
Re: "Production Fringe" doe not equal contingency
on Oct 8, 2008 at 1:22:19 am

I guess we've been lucky (or unlucky depending on your perspective). We've only done a couple of project where unions were involved.

Both were frustrating experiences, but one provided a good story I can tell at parties!

It was a marketing video for a thoroughbred stallion syndicate shot in New York at Saratoga, Belmont and Aqueduct.

I shot the project, but we had to hire a union videographer anyway, who did nothing but follow us around all day for a week, refusing to help in any way because "his" job was operating the camera, and I was doing that.

So I finally relented and had him shoot while I directed. Only problem, my mother had a better eye and more camera knowledge than this guy (recommended by the New York Film Commission no less.) He thought you focused a zoom lens by zooming into the farthest image in the scene and setting focus, regardless of what was supposed to be in focus.

For an hour I tried in vain to explain that what you zoomed and focused on was the item in the scene that was SUPPOSED to be in focus...not the item farthest from the camera.

I even showed him how if he focused on the building 500 feet away, when the actor 20 feet away was supposed to be in focus, that the actor quite obviously was out of focus when you were even midway through the zoom range. Despite this visual evidence...he continued to argue his case.

I finally just took back the camera and let him continue doing what he did best....nothing.

So we ended up paying a guy $3000 plus hotels, meals and rental car...to do nothing.






Chris Blair
Magnetic Image, Inc.
Evansville, IN
http://www.videomi.com


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Steve Wargo
Re: "Production Fringe" doe not equal contingency
on Oct 8, 2008 at 2:19:00 pm

We've had the same experience in Vegas. It's called "job shadows". I actually had one guy ask me to train him during our shoot. I felt like tossing him under a train, to be truthful.

Steve Wargo
Tempe, Arizona
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