The Commercial Producers Council, representing 13 of Australia’s leading commercial production companies, has updated its payment terms to reflect the changing operating environment its members are facing.
The new structure replaces the previous terms (50% prior to shooting and 50% on completion) at a time when production companies have become increasingly challenged to carry the financial burden when the majority of their subcontractors operate to 7 and 14 day payment terms.
The new payment terms are structured to align with the weighting of payments during the lifecycle of a shoot, and follow the model recommended by the NZAPG and considered the industry standard amongst New Zealand’s advertising industry.
New terms of payment
First third of the budget: invoiced on acceptance of the quote and payable within seven days.
Second third of the budget: invoiced seven days prior to commencement and payable prior to first shoot day.
Final third of the budget: invoiced on Agency offline approval and payable within thirty days of the invoice.
The new terms have been adopted by all CPC members and will take effect 1st July 2019.
The CPC’s Standard Production Agreement, updated to reflect the new terms, is also for your convenience.