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The project is developed
to match the client's budget frame, and the client received a project
proposal and formal quotation as the basis for deciding to proceed with
production.
The degree of detail in the production
budget which accompanies the quotation depends on client's requirements and
the nature of the project. Many production budgets are compiled many
weeks or months before the script is written and the actual production
costs can be calculated, so a degree of experience is required when making
a fixed-price and competitive quotation for a project. |
Production budget
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| Productions
for clients in Denmark are normally subject to Danish VAT (MOMS) - it is
therefore important, when drawing up a project proposal, that we know
whether the client is registered for VAT or not, as this may influence the
available production budget. |
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| When
the customer places an order for a production, a written production
contract is between the client and Channel 6 Television is entered into. (see
also our information page about production
contracts. |
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| The
production price and schedule for staged-payment is specified in the
production contract. Most projects are billed in stages - typically with
each stage corresponding to a particular phase of the production and
usually a phase-approval by the client. |
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| The
number and amount for each stage will depend on the nature of the project,
the overall budget and the duration of the production process. |
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| Channel
6 Television prefers to produce to a fixed-price. The terms for the
production price to remain unchanged are defined in the production
contract. The basic principle is that the agreed price remains fixed,
unless the client desires modifications to the production and both parties
enter into a written agreement concerning such changes. |
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| At
the time the production contract is signed there may be certain budget
posts which cannot be specified accurately. In such cases the contract
includes an agreement which defines how and at which stage of the
production such costs shall be agreed. |
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| The
production contract and budget usually covers all the costs relating to
production, and post-production up to the approval of the final cut,
including a small quantity of copies of the customer for screening and
approval. |
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| The
cost of authoring CD and DVD copies, together with the production of VHS,
CD or DVD copies and accompanying printed matter is usually billed
separately. |
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| For
projects with extensive duplication and distribution costs the company
will usually prepare a quotation - often to a fixed-price. |
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| Indirect
funding |
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| A
major proportion of the company's productions are funded via public funds
and/or private foundations. Such funding can be sought for both in-house
productions and productions to be developed and realised in co-operation
with other organisations or companies. |
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| Where
another organisation or company assumes sole responsibility for funding
applications Channel 6 Television will usually provide a quotation for the
relevant part of the production, but otherwise our involvement in the
project development will be limited. |
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| Where
another organisation or company seeks a co-operation with Channel 6
Television on the development of a project, we will usually invest the
creative and administrative resources necessary to produce the required
funding applications. |
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| Such
projects usually result in a formal co-production agreement between those
involved, so that the division of responsibility and investment in the
project - and the division of income from any successful funding is
clearly defined. Similarly, such agreement also covers questions relating
to the use of the finished production and the division of rights and
royalties. |
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| When
developing any form of joint venture or co-production, Channel 6 Television
seeks to ensure that all issues are addressed and agreement reach
thereupon, before funding is sought and secured. |
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| This
model for co-operation is particularly suitable for funding-eligible
organisations or companies which have a production requirement and require
a professional media partner for development and production. See also our
information about co-production. |
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| This
model is also applied in relation to some of the company's in-house
projects which may be realised in co-operation with other organisations. |
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