Film Accounting Glossary
Bid
What is a bid?
Also called quote, or vendor quote.
A bid is a vendor's written price for a defined scope of work or rental, used by the production to budget the line and to demonstrate competitive pricing.
Productions typically collect multiple bids on significant purchases, both to control cost and to satisfy studio or incentive requirements around related-party spend. A bid is not a commitment until it is converted to a purchase order.
Example
Three vendors quote a five-vehicle package at $14,500, $16,200, and $13,900 a week. The show budgets the middle figure, negotiates the winner to $13,200, and keeps all three bids on file as evidence of competitive pricing.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Prep, before any purchase order exists. Retained in the audit file, particularly for high-value or related-party spend.
Common mistake
Treating an accepted bid as the commitment. Nothing is committed until a purchase order is issued, and a bid left unconverted is a cost nobody is tracking.
Related questions
- How many bids should a production get?
- Commonly three on significant purchases, both to control price and to evidence competitive pricing for studio policy and incentive audits.
- Is a vendor bid binding?
- Not usually. It is a price for a defined scope, valid for a stated period. It becomes binding when the production issues a purchase order against it.