Film Accounting Glossary
Fixed fee
What is a fixed fee?
Also called flat fee, or firm price.
A fixed fee is a set amount paid for a defined scope regardless of hours worked or units used, common for above-the-line talent, post-production packages, and some vendor deals.
It removes overtime and quantity risk from the production and puts it on the provider. Fixed fees only stay fixed if the scope is written tightly, so scope changes have to be papered as amendments rather than absorbed.
Example
A post house quotes $340,000 for a defined package: conform, color, sound mix, and two rounds of changes. A third round of changes is not in the scope, so it is an amendment at an agreed rate, not an argument in week nine.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Above-the-line talent deals, post packages, and some vendor agreements. Only stays fixed if the scope is written tightly.
Common mistake
Agreeing a fixed fee against a loose scope. Every change then becomes an argument rather than an amendment, usually at the point of least leverage.
Related questions
- What is usually paid on a fixed fee in film?
- Above-the-line talent, post-production packages, and some vendor deals where the provider takes the hours or quantity risk rather than the production.
- What happens when scope changes on a fixed fee?
- It should be papered as an amendment at an agreed rate. If the original scope was written loosely, there is nothing to amend against.