I had a quick question regarding the AICP bid form and was hoping some of you may have the background to help me.
Regarding the production fee and markup. Which lineitems do production companies markup... is it only the direct costs, meaning, do companies NOT markup talent costs and insurance? What about post-production if they coordinate the handling of coordination of a post-production company?
I see two ways of going about it, and both are done for the same reason - to cover the hours spent managing these phases of the project, which you might not be involved in directly, but you do have to spend hours managing, tracking, and organizing.
Some people mark up talent costs (anywhere from 10 to 25 percent) and any post which is hired out. I don't know about insurance. Personally, I track my time on every project I work on, so I have a very good sense of how many hours it takes me to research, hire, and manage the talent phase of the project, and any others which require my time. There is really no phase of any project that I don't spend at least a few hours on. The trick is to cover your time, but don't blow the budget out of being competitive. There are even times when it's necessary to put a 15 to 25 percent contingency fee on projects, especially when you're working with a client who has proven to be a micro-manager of every approval, and makes client corrections right down to the delivery phase.