Your Daily Dose of Ad World Buzz
Latest
Creative Room

What A Production House Bid Actually Contains

Ad Tribe! Bureau2 min read
A blank clapperboard and a pocket calculator as cutouts with thick white borders, framed by coral and teal paper strips on black

Before a film is approved, the agency usually asks two or three production houses to quote, and each production house bid that comes back is harder to read than it looks. It contains a cost and a treatment, and comparing them is less straightforward than picking the lowest number.

Two bids for the same script can be quoting for two quite different films.

What a production house bid includes

The director's treatment: how they see the film, references, casting thoughts, the look. Then the cost, broken down into crew, equipment, locations, cast, art department, post-production, and the production house's own fee.

There is also a schedule, usually with the number of shoot days, which is one of the biggest drivers of cost and one of the first things to be squeezed.

The cheapest bid is often quoting for a smaller film than anyone agreed to make.

How agencies compare bids

Line by line, ideally against a shared specification, so that one house is not quoting for two shoot days while another assumed three. Differences in the treatment matter as much: a director proposing more locations or a more complex scene is offering a richer film at a higher cost, not simply charging more.

Experienced agency producers also read what is missing. Contingency, usage rights and post-production are where gaps tend to sit.

Where the idea gets reshaped

In negotiation. When the client wants the preferred director at the lower price, something gives: a location, a day, a scene.

Those changes are often made by producers and finance teams rather than creatives, which is why the creative team needs to be in the room when the bid is being cut.

A bid comparison kept beside the original script, with each cut marked against the scene it affects, makes those trade-offs visible. Without it, a film can lose the moment it was sold on through a series of sensible savings.

More from Creative Room.

Follow Ad Tribe