One way to save a little money on any SAG project is to sign your actors to a weekly contract as opposed to a daily contract.... Wait! Not ANY project, as there is no Weekly Performer option for Ultra Low Budget projects.
For all other contracts the cost of scale for a Weekly Performer is slightly less than the cost of paying a daily performer for four days of work. Therefore, unless a performer is working three consecutive days or less, it makes sense to sign them to a weekly contract. This gives you some freedom as well. If someone is being paid weekly, it won't be a problem to bring them in for a shot where they are just in the background, or a scene that they are in only a moment. If you're paying them a daily, and you are like me, you will stress about spending the money for such a small moment and try to squeeze them into a different day when they're already doing something else. It also creates flexibility (and saves money) for when you miss a day and have to throw another day onto a performer's schedule.
It will also save you as you work with Consecutive Employment. On the standard SAG Contract and Low Budget Contract ($500,000 to $2,000,000) a performer must be paid for down days between their work day. So if I hire an actor to work Monday and Friday I have to pay them for Tuesday, Wednesday and Thursday as well. While it would be preferred to shoot them out in two consecutive days, it is frequently impossible. Therefore, hiring the actor as a Weekly Performer will save you about a day and a half's worth of pay.
SAG's Ultra Low ($0-$200,000) and Low Budget Modified ($200,000 - $500,000) contracts do not require Consecutive Employment payments.
Showing posts with label Budgets. Show all posts
Showing posts with label Budgets. Show all posts
Wednesday, June 25, 2014
Wednesday, June 5, 2013
Insurance tips for ultra-low budget and micro budget independent films.
When I've shot micro/no-budget I have often flown without any insurance at all. I can't recommend this (I'm afraid I'd be sued). On these shoots our crew of five or six bring their own equipment, and all understand that we're all in it together. Fortunately I never had any serious issues on these small shoots. In fact, I had until recently gone twelve features without ever having to make an insurance claim. The streak is over, however, folks. Both of the last two features I've line produced have had to make insurance claims (one very large, and a smaller one). Based on these experiences here are some tips:
• Don't raise your deductible in order to keep your up-front costs low. If you don't have to file a claim you'll save money... but, if you do, you'll regret it. Maybe your budget is so low it's worth the gamble, but remember your coverage is per incident. So, if your deductible on rented equipment is $5,000, and you have a $4,000 repair on a camera, and a $4,000 repair on a mixer, then you've spent $8,000 and still haven't been able to use your insurance.
• Have any crew member who is bringing their own equipment fill out a rental agreement, where they list their equipment and its replacement cost (even if they're not charging you to use it). If that equipment is damaged, you could always go back and do it, but doing it up front saves time, and will give your crew a sense of being looked after. We had to do this for a number of things that were stolen on a project (on one of the above mentioned claims), but had to post-date each form. It would have been much simpler just to do it when everyone fills out their initial paperwork.
• Budget for claims. Get an insurance package with a $1,500 deductible (which is standard) and include $3,000 in your budget for a couple of insurance claims. You'll be glad you did if you have to file a claim, AND you'll be glad you did if you don't, because it will give you that much more padding.
• Realize that certain elements will increase the cost of your insurance, such as stunts, fights, use of weapons, falls, scenes near water, scenes in water, shots that involve the camera to be on a boat, animals, talent on horses, etc etc. Don't cheat. Let your broker know exactly what you'll be doing. You don't want to explain why you dropped the Red camera in the lake, when you didn't point out you'd be working around a lake... that's a good way to get your claim refused.
• Expect to pay around $4,000 for a feature film without stunts, just as a general starting place. It can be more, and can be less.
• Be sure to insure yourself long enough before production so your crew can pick up equipment, and long enough after for them to return. If you've set up your insurance so it starts on your first day of production, no one will let anything out of the rental house... AND if you have to add a day or two on after you've already set up the policy, you'll find it a big additional expense that wouldn't have been there if you had given the correct time period at the beginning.
• A great option for micro-budgets: If you know someone who owns a production company that is insured yearly, you can enter into an agreement with them to be carried on their policy. You will sign an agreement with them that they are an official "Producer" on the project (though they may not have to have any official credit, other than a special thanks), and they become the administrators of the project, and all insurance goes through them. Be careful, however, that their coverage is sufficient for your needs. Most production companies don't have to rent a lot of equipment very often, so it's possible that their rental coverage isn't high enough for your needs.
• My preferred insurance company is Supple-Merrill and Driscoll (http://productioninsurance.com/). They have excellent customer service and a great online system that allows you to issue insurance certificates at any time of day on your own. Just fill out the form and email a cert to whomever needs it. This is a huge benefit over other companies who require you to call or email the information and wait a day (a business day) until you have a certificate. I've been able to knock on someone's door and ask if we could film on their property, and email them a cert while we stood there speaking.
However, I am currently working with them on a major claim (my first). Once that is over and we see how smoothly the process went, I'll update.
UPDATE: The claim went great. There was a lot of paperwork, but everyone eventually got everything that was covered. Not only will I use them again, I have used them since.
Good luck, and may you never need to file a claim.
• Don't raise your deductible in order to keep your up-front costs low. If you don't have to file a claim you'll save money... but, if you do, you'll regret it. Maybe your budget is so low it's worth the gamble, but remember your coverage is per incident. So, if your deductible on rented equipment is $5,000, and you have a $4,000 repair on a camera, and a $4,000 repair on a mixer, then you've spent $8,000 and still haven't been able to use your insurance.
• Have any crew member who is bringing their own equipment fill out a rental agreement, where they list their equipment and its replacement cost (even if they're not charging you to use it). If that equipment is damaged, you could always go back and do it, but doing it up front saves time, and will give your crew a sense of being looked after. We had to do this for a number of things that were stolen on a project (on one of the above mentioned claims), but had to post-date each form. It would have been much simpler just to do it when everyone fills out their initial paperwork.
• Budget for claims. Get an insurance package with a $1,500 deductible (which is standard) and include $3,000 in your budget for a couple of insurance claims. You'll be glad you did if you have to file a claim, AND you'll be glad you did if you don't, because it will give you that much more padding.
• Realize that certain elements will increase the cost of your insurance, such as stunts, fights, use of weapons, falls, scenes near water, scenes in water, shots that involve the camera to be on a boat, animals, talent on horses, etc etc. Don't cheat. Let your broker know exactly what you'll be doing. You don't want to explain why you dropped the Red camera in the lake, when you didn't point out you'd be working around a lake... that's a good way to get your claim refused.
.jpg) |
| Brad Dourif threatens Spencer Daniels with a knife, and threatens to send Last Kind Words' insurance through the roof. |
 |
| Man From Reno crew with camera on a dock needed special insurance for working near water. DP extraordinaire, Rich Wong, works the EZ Rig. |
 |
| Guns and blanks add to insurance costs. Air Soft guns and Sharpees don't. Jarrod Phillips and Tom Post in Inspired Guns. |
• Be sure to insure yourself long enough before production so your crew can pick up equipment, and long enough after for them to return. If you've set up your insurance so it starts on your first day of production, no one will let anything out of the rental house... AND if you have to add a day or two on after you've already set up the policy, you'll find it a big additional expense that wouldn't have been there if you had given the correct time period at the beginning.
• A great option for micro-budgets: If you know someone who owns a production company that is insured yearly, you can enter into an agreement with them to be carried on their policy. You will sign an agreement with them that they are an official "Producer" on the project (though they may not have to have any official credit, other than a special thanks), and they become the administrators of the project, and all insurance goes through them. Be careful, however, that their coverage is sufficient for your needs. Most production companies don't have to rent a lot of equipment very often, so it's possible that their rental coverage isn't high enough for your needs.
• My preferred insurance company is Supple-Merrill and Driscoll (http://productioninsurance.com/). They have excellent customer service and a great online system that allows you to issue insurance certificates at any time of day on your own. Just fill out the form and email a cert to whomever needs it. This is a huge benefit over other companies who require you to call or email the information and wait a day (a business day) until you have a certificate. I've been able to knock on someone's door and ask if we could film on their property, and email them a cert while we stood there speaking.
However, I am currently working with them on a major claim (my first). Once that is over and we see how smoothly the process went, I'll update.
UPDATE: The claim went great. There was a lot of paperwork, but everyone eventually got everything that was covered. Not only will I use them again, I have used them since.
 |
| I would not want to tell this man that the ride he brought to set wasn't insured. Nano "Doc" Gonzalez on the set of Inspired Guns. |
Saturday, May 4, 2013
Working with Flat Rates on SAG Ultra Low Budget
In an earlier blog, I talked about offering a higher scale to your principal actors if your shooting Ultra Low Budget, as a way to entice agencies to submit more experienced actors.
Once you do this, you can turn that into a flat rate and avoid having to deal with Over Time. SAG's Ultra Low contract is for $100 a day, BUT for an eight hour day. If an actor works 12 hours, with their four hours of OT, they are due $175. If you offer a performer the rate of SAG Low Budget Modified ($268 a day) OT will still be calculated at 8 hours as per your SAG contract. However, you can set up your performer on a flat rate. If she is working ten days, you can negotiate with her agent to set her up on a flat rate or "guarantee payment" of $2,680 (based on $268 a day for ten days). When calculating her daily rates your Payroll company (or yourself, if you're winging it) will still calculate her salary based on SAG scale ($100 for an eight hour day), plus overtime... meaning after ten days she will probably be paid around $1,750 if she's worked ten twelve hour days. On her final day you would give her the additional guaranteed amount ($930), for the total flat rate guarantee (the agent may prefer this amount up front, but it works the same way). If you do this, you're following SAG's Ultra Low Budget rules, and paying your performer your agreed amount. You must be sure to state this in your negotiation with your performer's agent however. If you tell them you are offering a guaranteed payment of $2680 based on ten days worked at $268 a day, they will understand.
Once you do this, you can turn that into a flat rate and avoid having to deal with Over Time. SAG's Ultra Low contract is for $100 a day, BUT for an eight hour day. If an actor works 12 hours, with their four hours of OT, they are due $175. If you offer a performer the rate of SAG Low Budget Modified ($268 a day) OT will still be calculated at 8 hours as per your SAG contract. However, you can set up your performer on a flat rate. If she is working ten days, you can negotiate with her agent to set her up on a flat rate or "guarantee payment" of $2,680 (based on $268 a day for ten days). When calculating her daily rates your Payroll company (or yourself, if you're winging it) will still calculate her salary based on SAG scale ($100 for an eight hour day), plus overtime... meaning after ten days she will probably be paid around $1,750 if she's worked ten twelve hour days. On her final day you would give her the additional guaranteed amount ($930), for the total flat rate guarantee (the agent may prefer this amount up front, but it works the same way). If you do this, you're following SAG's Ultra Low Budget rules, and paying your performer your agreed amount. You must be sure to state this in your negotiation with your performer's agent however. If you tell them you are offering a guaranteed payment of $2680 based on ten days worked at $268 a day, they will understand.
 |
| Hollywood veteran Pepe Serna recently worked under a similar deal for Dave Boyle's Man From Reno, which I had the pleasure to Line Produce. |
Wednesday, April 20, 2011
What IS Low Budget?
Every year the Oscars seem to select one “Low Budget” movie as its flavor of the month. When Brokeback Mountain was all the rage no one would stop referring to it as a “Low Budget Movie.” Oh, wow, they made it for such a low budget. Everyone took super low salaries so they could work on it. On and on and on. Well Brokeback Mountain cost $14 million dollars to make. The Hurt Locker was ten million. Little Miss Sunshine was $8 million. Even Winter’s Bone was $2 million (which gives you an idea how independent film is trending).
Low, Ultra-Low, No are budget categories loosely based on the Screen Actor’s Guild (SAG) various contracts for independent film.
SAG’s independent arm (SAGindie) has three levels: Low budget (for films with a total budget of under $2 million and above $650,000); Low Budget Modified (for films between $200,000 and $650,000) and Ultra-Low Budget (for films under $200,000). I have produced two Low Budget Modified films, one Ultra Low Budget film and currently have two additional ULB films in preproduction. I also produced a feature under SAG’s previous Ultra Low Budget style contract which at that point was called their “Experimental Contract.”
I want to give a huge shout-out to SAG for creating SAGindie and these three contracts. It is a testament to both the way the world of independent film is changing and how SAG is providing the best opportunities for their members. Prior to these contracts no SAG performer could work on any project that wasn’t fully SAG, with a minimum scale of $750 a day per performer. Back then I made a short, and a SAG actor was desperate to get the lead. I would have given it to him, if SAG had allowed me. But there was no way I could pay him, and he wouldn’t work behind their backs.
No-Budget is not an official term by any recognized union or guild but should be taken fairly literally. A production budget of $15,000 or less is essentially No Budget, but others are making very credible films with even less than that. In this blog I will talk a lot about making films at this level. Though there are clearly disadvantages to working so low, there are also definite advantages.
A filmmaker friend of mine recently was laughing about someone trying to raise $2 million for their film. He said, “They’re never gonna get it. I would be more confident if they said they were going to make it for $200.” I agreed. If you plan on making it for only $200, I’m not sure you can actually make the movie, but I’m sure you can at least raise the money. There has never been a time when raising money for films has been easy. Our current economy makes it nearly impossible. Instead of just waiting for the money to fall out of the sky, however, savvy filmmakers are now making films for what most people just a few years ago would have said are impossible numbers, and creating business plans and strategies that ensure their Return of Investment.
Remember: You’re not a filmmaker if you’re not making films. You’re not a film producer if you’re not producing films. I would rather make five $50,000 films a year than one $5,000,000 film every five years.
Updated rates: In 2015 SAG raised the rates of the SAGIndie contracts to: Ultra Low Budget: $125 (for budgets from 0-250k); Low Budget Modified: $335 daily or $1,166 weekly (for budgets from 250k-700k); Low Budget $630 daily or $2,190 weekly (for budgets from 700k-2.5 mil).
Updated rates: In 2015 SAG raised the rates of the SAGIndie contracts to: Ultra Low Budget: $125 (for budgets from 0-250k); Low Budget Modified: $335 daily or $1,166 weekly (for budgets from 250k-700k); Low Budget $630 daily or $2,190 weekly (for budgets from 700k-2.5 mil).
Subscribe to:
Posts (Atom)