Creatives Grab Coffee - 7 Tips for Video Contracts (reupload) | Creatives Grab Coffee 54

Episode Date: February 28, 2024

Today we Kickoff 2024 with our latest episode. Here we decided to start a new type of content for the episodes. We dive deep into the essentials of video production contracts.We break down seven cruci...al tips to safeguard your projects, ensure clear communication, and maintain professional relationships with clients. Welcome to the business of video production. Welcome to Creatives Grab Coffee.

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Starting point is 00:00:00 Welcome to Creatives Grab Coffee, the podcast on the business of video production. Creatives Grab Coffee is hosted by Daria Nuri and Kirill Lazarev from Labs Productions. Our goal is to share knowledge and experiences from video production professionals around the world. Whether you're a freelancer looking to start your own business or a seasoned business owner aiming to scale your company, this is the show for you. Join us as we develop a community of like-minded creatives looking to learn and help each other grow. Welcome to the business of video production. Welcome to Creatives Grab Coffee. Before we get started with the show, let's go over today's sponsors. Do you have a shoot in Toronto? Do you need crew or a strong production partner to help you with your project? Laps Productions is one of the top
Starting point is 00:00:52 production companies in Toronto and your go-to video partner. With our strong creative skills and extensive network, we can help you achieve your goal. Laps Productions is able to offer you production services, white label services, or finder fees for project handoffs. Reach out to us on our website at LAPSProductions.com to learn more. My name is Mehran. Welcome to Canada Film Equipment. We are a boutique rental house based in Toronto. We are here to help you guys out with all production sizes. Feel free to contact us to get a quote if you are a production house and you're looking for lighting, camera packages, or lighting and group band packages.
Starting point is 00:01:30 You can see our contact information in the link below. We are more than happy to help you guys out. Make sure you follow and subscribe to creativescraftcoffee.com. Thank you. Hey, what's up everybody? I'm Matt. Welcome to Audio Process. We are a boutique audio company doing location sound, sound design, post sound, ADR, Foley. We service equipment. We do all your audio needs here in Toronto. We got you covered. Come on down. Audioprocess.ca. Don't forget to like,
Starting point is 00:02:05 follow, subscribe, and all of the other internet things to creativesgrabcoffee.com. They'll be waiting for you. I'll be waiting for you. And we're all going to have a real good time. And now let's begin the show. Guys, welcome finally to season four or the 2024 year of Creatives Grab Coffee. We're going to be kicking it off a little bit differently this year with a few different kinds of content. Like, for example, today's episode is going to be a little bit more focused on a certain topic, rather than just, you know, having like a general discussion, seeing where it goes. You know, we've been skating by on that approach with our episodes for the last three, four years.
Starting point is 00:02:49 So we figured it's time to bring a little bit of structure to the podcast. But anyway, so today, Daryl, what are we going to be talking about today? Okay, so today's topic based episode is on seven tips to include in your video production contracts. Yeah, and there's also a bonus one at the end of it. your video production contracts. Yeah. And there's also a bonus one at the end of it. A potential bonus one as well. And the reason we figured this would be a good one to kind of start off with is with any with any business with service offerings, you want to have a good baseline and contracts are the perfect place to start. You know, when you're starting off, you want to make sure that your client and you are both on the same page of what to expect from each other. And we have found that these seven specific tips are should be more commonly placed in contracts and not always are.
Starting point is 00:03:35 So, Dario, do you want to take it away with what the first tip is? Yeah, so the first one is very straightforward. It's just about having a very detailed service description. straightforward is just about having a very detailed service description so for example what I include in ours is always like elements that are in your proposal pretty much so the exact needs of what the client wants for the project where you're gonna offer the timeline and like the project costs, the revision process, things of that nature. Like I try to be as detailed as I can in that section of the contract. So, again, I literally just copy over stuff that is in the proposal document and try to incorporate like you don't have to overdo it,
Starting point is 00:04:23 but just essentially just copy over most of the information that you guys were discussing because again once uh if for some reason you guys ever get into like any any disputes disputes or like you know bumps on the road about what what you guys like were meant to offer and what they received and everything, you can always just refer back to the contract and say, hey, you guys came to us for this. And this is what we said we're going to do. These are the dates. And there it is. The biggest reason also is because scopes change sometimes. And that is fairly common in our industry. Like, for example, when you guys might agree on one thing that you need, like, say, initially you realize you need only one video deliverable.
Starting point is 00:05:11 But then as you go throughout the project, the client realizes, oh, we actually need two or three deliverables to actually make this effective. Right. And because you've already determined in the initial scope that it was just one, they will assume and understand that more deliverables will cost more. If you don't, for example, include what, I guess this is more so like a deliverables thing, which isn't one of the next tips, but this example kind of fits here as well. Whereas like if the scope changes and you haven't defined the scope in the beginning,
Starting point is 00:05:41 there could always be that gray area where it's like, we assume that this was part of the original, right? So this just essentially makes sure that everyone knows what to expect from each other at this point. To add to what you were saying, you could make amendments to the contract if like what they require is greater than what you guys agreed upon. You just have to add it to the appendix. There should always be like an appendix a in your contract and um you just need to them you just
Starting point is 00:06:09 you just need to add it in and then just get them to sign off on it that's the key there's a little bonus bonus tip for you guys keep an appendix a for amendments yeah because what we used to do in the past with this section it was it was that it was very basic like it would be like uh we are creating you know laps last productions is creating a promotional video for blank and we might just put like the final due date and that's it it was like almost like a sentence or two but over the years we just decided to cover our behinds a little bit more and put as much detail as we can so again even putting like reference videos we include that in um all the dates for all the stages of the production are included in there
Starting point is 00:06:57 timelines and uh yeah timelines and i i basically copy over like the invoice in a way as well. And I put it in there under like project costs. Like it's literally just the invoice copied over into there. Yeah. It's basically just putting all the necessary information and everything in there. And basically with the invoice, that's going to be part of the next, one of the next tips as well. So the second tip is transparent, keeping, the second tip is having transparent payment keeping the second tip is having transparent payment terms it's a little bit of a mouth a little bit of a mouthful for for some reason for me but uh yeah do you want to kind of go over a little bit about what that entails yeah so for this part what we used to have in the past is just again one line saying we are owed this much plus plus hst so subtotal plus hst
Starting point is 00:07:47 and then now what we do is we put like it because our invoicing how it works is that it's more or less it's a pretty much three invoices that we send the client um you know it'll either be uh deposit plus most of the project cost plus the final remaining amounts, or it'll be project management fee and pre-production, and then the second one will be the production invoice, and the third one will be post-production invoice. We basically just structure it like that, and we put the due dates for each one, and then the consequences also of not being paid on time for each one. And then the consequences also of not being paid on time for each one. So, for example, for like the first invoice, if it's not, it's issued at contract signing, which is when they sign it. And then it's due at the same time, roughly, or by a certain date. Otherwise, the whole project can get canned.
Starting point is 00:08:42 So we kind of put all those terms in there. Or there are delays. Essentially, there are delays essentially there are delays like for example if you have a certain date where everything needs to be booked for and you haven't paid any of those initial invoices to book our team then we can't move forward because things change all the time we need to book people and make sure that they're compensated properly as well and this also is a good thing for the client because this locks people down, right? Because if someone's not paying someone to book them in for a date and they have to wait a long time to get it, other projects come up all the time, especially when you're dealing with a lot of freelancers. This is an industry of
Starting point is 00:09:22 freelancers. It's rarely the case where you go to a video production company and everyone from the PA to the director is on staff at that business. It's extremely rare. There are some companies only that operate in that model, but those are on a much larger scale. Most of the time you're dealing with a core team and then production crew is usually freelance based from then on. So having good transparent payment terms and being very open about it helps make it less of a taboo subject for a lot of people. So, you know, it's just part of business. There shouldn't be any issue talking about money. It's a very straightforward process. Like, yep, this is when it's due. Let's do it. Let's book everybody in and let's move forward. And because of this, you and I never really have these issues now with clients, right?
Starting point is 00:10:24 creating a problem out of it for ourselves because again we didn't have these terms in place and then like you mentioned it was taboo for us to talk about money with the client but that was really because it was taboo for us not for the client client didn't really care yeah so because they have a lot of other vendors and bigger vendors don't even it's not it's not a it's not taboo for them to say hey you got to pay by this date, otherwise you don't get your stuff, right? Actually, I've noticed that ever since we did add these terms and the fact that we do go over it with them when they're signing the contract, they're much quicker to pay,
Starting point is 00:11:00 especially at least the first invoice. Because they're also understanding it. They also essentially will understand what those are. Because sometimes when things are moving really quickly, I feel like, I don't know if clients always read through every single minute detail in a contract, or at least they might skim through certain things. So at least highlighting these key things is just to kind of guide them.
Starting point is 00:11:23 It's to let them know this is all important information in the contract. Make sure that we're all on the same page there. Sometimes they're still a little delayed with that, though. Yeah. You have to send them an email saying, hey, we're not booked in yet. So when is the payment coming? And then they panic and they quickly pay it off. Yeah.
Starting point is 00:11:42 You know, the other thing is having these different payment cycles helps keep cashflow within the business and protects everyone, uh, within it because this there's always, everyone has these things included in their contracts from different experiences. And I remember one standout was from way back in 2014, just when we were starting the business, we had this one project where a client out in, I think it was Whitby, they sent us some video work that they had shot, and they hired us just to simply do post-production. We did a one-invoice type thing, where once we complete all the videos, they'll pay us for it. And it wasn't a lot.
Starting point is 00:12:23 It was like, I think we did like 14 or 15 videos for like 1500 bucks you know it's early days it was 900 it was 1200 and they didn't want to pay we settled on on 900 that's what it was yeah well what happened was we did all we did all the work we sent them the first round of revisions everything was there they're like okay this is great thank you we'll we'll start reviewing and then move forward two weeks pass by we don't hear anything and then they and then they email us saying yeah we we actually realize we don't really need these videos to be done anymore so we don't want to pay you and we're like sorry what after we've done all the work oh yeah and and because of that, okay, there's a lot of loopholes in our process now if this is what's going on. So let's protect ourselves going forward.
Starting point is 00:13:13 But I'm sure a lot of other people in our industry have had similar situations where clients or leads decided all of a sudden, no, I don't want to pay anymore. But, you know, that is a topic for another day but we can briefly touch upon how we're kind of because how we're mitigating situations like that now as well because the thing with that situation was that it was a new client right yeah and that's the thing that always stresses me out a little bit every time there's a new lead that then becomes a client yeah is that oh man are they gonna pay or not right am i gonna have that situation where it might not go through or am i am i gonna have to fight for this i i sort of got it we've only had
Starting point is 00:13:55 bad situations like that like two or three times in our whole 10-year run but it's still something i get nervous about until like we get the first uh nine we're still we're still at nine we we hit 10 years in september so that's that's we we can't we can't say that celebration just rounding up rounding up don't round up yet because we got a plan for that it's gonna be fun so one thing we're actually we actually started implementing it this month is uh a deposit i don't know why we never thought about it, but we're doing like a 30% deposit on the whole project, right? That's the first invoice is essentially the deposit. And then these are for new clients. Just keep in mind, like, like people
Starting point is 00:14:36 that you don't have relationships with relationships with once you have built a good relationship with a client that you've worked with for a number of years, you already know what their process is like. They know what your process is like. You don't need to go that far in that situation. Like for example, we have one client that we've been working with for more than three, four years at this point. And it's very simple. We even just have gotten it down to the process of 50% at the beginning, 50% at the end, keeps everything streamlined and straightforward, and everybody's happy. And I would say if it's applicable,
Starting point is 00:15:14 if it's a new client and their company is, I don't know, maybe you haven't heard about them before. If it's a blue chip type of company, I wouldn't be too worried. But if it's one where it's like, if TD's coming, I'm not going to be too worried but like yeah if it's a company you know they're still around and everything but they're not as commonplace as yeah something like a bank might be then yeah i would i'd say putting the deposit in and it being due right away is a huge relief, you know?
Starting point is 00:15:46 Yeah. I think the easiest way to pitch it is, uh, while you're going through your whole sales funnel is just saying for new clients, we have a deposit system in place. So just, yeah,
Starting point is 00:15:54 I think that's it. Put it in there and that's it. It helps set expectations, uh, and allows everyone to kind of move forward. But anyway, I think we covered, uh,
Starting point is 00:16:03 the second tip pretty, there's one more, sorry, there's one more thing i would add in there sure thing uh one thing you should also add in this section is that anything any amount outside of what you just stated past a certain amount you need to get written approval from the client so for example we have it set to anything above zero like we need to get approval from them we used to have 50 there but then some of the other bigger clients said we have to change it to zero so i kind of left it at that but you could set it to whatever right you could say anything over a hundred dollars you need to get written approval from you so that i mean like expenses like production expenses yeah so like let's say
Starting point is 00:16:49 you had to get a backdrop for this and it's outside of the scope of that if it's above zero you have to get approval from them before you go ahead and purchase it right if you leave it at 50 bucks or whatever 100 bucks then you don't need to get rid of approval and you can add it in. But it's something you would need to let them know ahead of time. It's like, hey, if we have to spend over this amount, we have to get approval from you. But under that, no. No matter what it is, you have to let the client know
Starting point is 00:17:18 just so they know what to expect. So it's not like you're just piggybacking off of your contract terms to try to purchase equipment or gear or resources that may not really be necessary. But it's just to kind of help manage trust with the client. But that's a whole separate detail there. And last one for that one. There's a lot with this one. It's really just this last bit.
Starting point is 00:17:47 If there's an overdue invoice, you should put a term in there for overdue invoices where you would charge. We have it set at 22% per annum, which means per year on the overdue date. Let me see what I put here. on the overdue date. Let me see what I put here. Interest at the rate of 22% per annum will be charged on any invoices overdue from the date of receipt of the invoice by the client until paid.
Starting point is 00:18:13 Again, normally you wouldn't charge it, but this is if you're dealing with a client that's been a big pain and they've been skimping out. I think it's good to put it in there. 22% is like credit card interest fee, basically. Yeah, this is essentially to protect yourself against the clients that are on their way out that you know that you're not going to want to work with going forward
Starting point is 00:18:38 who have caused issues and challenges in this regard. It's just to kind of help yourself or to protect yourself in the worst case scenario. In that sense, obviously none of us want to ever go through a situation like this and we don't expect this to happen with clients. But again, this is what contracts are there for.
Starting point is 00:18:55 It's just to make sure everybody's protected. Yeah. Cause if you ever have to go through the court system because they're not paying, then you can always say, Hey, you also have to pay the penalty for not paying then you can always say hey you know you also have to pay uh the uh penalty for not paying on time yeah anyways moving on now to the next uh point is one thing
Starting point is 00:19:14 you got to make sure every contract has is a robust confidentiality clause so dario what does that necessarily entail typically it's basically the nd. It's a non-disclosure agreement. Some people have this separately and sometimes a client might ask you to sign theirs. For us, we just included it in our contract and I let them know of it and it kind of simplifies the whole process. Sometimes they might even make you sign theirs even though you have it in your contract but it's just about showing the client that you're pretty much a professional and look i already included it don't worry about it and it essentially covers that covers the basically lets the client know you're not going to disclose any of their personal information that's that's basically it there's a lot like it's
Starting point is 00:20:05 it's a it's over a page long in our contract so i'm not going to go through it but it just has like a definition of what the whole thing is like what what is a proprietary proprietary informational confidential information then the agreement portion of it like what we agree to do with regards to that information that we're given. And then what constitutes a breach. And then just like a miscellaneous section. Like we're not going to go through it because it's, it's very long and you can find like a boilerplate version online anyhow, but it's just something good to include.
Starting point is 00:20:38 You know, again, you don't need to include it, but it's just good to have it. It's good to have it because it shows the client that you're also thinking of them in this, not just, it's not like the contract is there just to have it. It's good to have it because it shows the client that you're also thinking of them in this. Not just it's not like the contract is there just to protect you. It's there to protect both parties.
Starting point is 00:20:50 That's essentially what contracts are for. And, you know, this this this this clause also goes both ways. Right. You know, for example, if you have a certain way about how you go about your process or any proprietary... I don't think it covers... No, the way we have it set up, it doesn't cover it. Oh, really? Okay. It's really like this is... It could go worse for you, including it.
Starting point is 00:21:20 But it's just meant to show the client that you're a professional. Okay. It's basically saying, I'm not going to disclose your secrets to the public or whatever. Yeah. Yeah, exactly. Next, we kind of touched upon this a little bit as an example in one of the previous tips, but the fourth tip is ownership and deliverables. And essentially what you need to do in this situation is discuss what the total amount of deliverables there will be for the project and who has the ownership of it for, for public release and things like that. Dario, do you want to go a little bit more in depth?
Starting point is 00:21:58 Yeah, like it doesn't discuss the total amounts. It just discusses like what we mean by deliverables. the total amounts it just discusses like what we mean by deliverables essentially the uh the total amount would be something you include in like the very first thing we talked about which was the like the service description that's where that's where you put like the total amount yeah when it comes to uh uh like video deliverables you're basically discussing what is like a deliverable and in in our case for example we differentiate between the final product and for example the raw files because sometimes the client thinks that they're they're they also own the raw files right uh but we actually put it in the contract saying that no what we mean by deliverable is the actual final
Starting point is 00:22:40 video uh unless you know in the service description like it's included that they're getting the raw files so we even put that there as well it's only unless outlined in exhibit a or whatever that the client is also getting the raw files and we also put in that for example they're not allowed to they're not owners of like for example the the the the rough refined cuts so any revision like any any version that is like a uh uh uh like a revision version they're not in they don't own that so they're not allowed to post like the v2 of that video they're only allowed to post the final cut so that protects us also from them posting something that's not good you know that's not up to scratch yeah oh actually now that i
Starting point is 00:23:34 think about it the the reason we put that in there is because let's say we did a v1 cut and then they wanted a completely different cut if they owned the v1 they would essentially get two two complete different versions it might also be like two different videos right so that's also to protect us from that i think that was the reason we included like yeah but we specified like the final cut because we have had some clients who are like they wanted a complete different version and they never really did post the the alternate one but they could have if they wanted to right to be honest though i feel like that's not like this shouldn't be an issue for a lot of clients because usually they only want the final version anyway so it's it's well none of the stuff we
Starting point is 00:24:22 talk about should be should be some something that you actually have to like refer back to a contract say yo like we shot we signed on this not that right yeah but again this is it's like insurance it's just there to protect you in case you need to be protected yeah um with all that said let's move on now to the sixth uh the sixth tip hold on hold on we're not we're not we're not there yet so no we're not oh there's still more yeah so i also put in that until we get paid it's not considered a final video deliverable so i also put it in there basically that until that final payment comes in they're not allowed legally you know yeah and and last one uh it's just a promotional use each one is the last one well you keep going to the next
Starting point is 00:25:14 one i'm not done the going go go go go go uh the the promotional use bit is is basically i put in a term in there that says we're allowed to display all public videos. So the full, it's only a sentence long. I'll just read it. Yeah. Labs Productions preserves the right to display all final public video deliverables on its website, social media, and other means of marketing for promotional purposes without written consent of the client. So basically, we get to just showcase it in our portfolio this part this section of the contract is often the one legal asks me to change if we're doing
Starting point is 00:25:54 stuff with financial clients most of the time yeah it's internal but yeah if it's internal it's usually internal then that's when they do that like i've never had it where if they if they if they're a public or if they're releasing something publicly then um and that they ask us to change this because it doesn't make sense it's all there it's like it's it's under fair honestly it's like i feel like it's under like a fair fair use to post a link that is already public you know when you think about it it's yeah but surprising i still always get questions about that they always ask even though like it's like the language is very clear i'll still get them asking does this mean you'll post it uh on your web what would like they asked me to clarify what it means and it's like i always say just like if
Starting point is 00:26:41 it's if it's private on your end it's private on our end if it's public on your end it's public on our end type of thing that's it really but that's that's often the one that when it gets sent for legal review is the one that comes back that needs to be updated because i i always uh when when you send the contract it's always a good the the first the what you should always say in the email is always ask them here's a contract uh let me know what legal says so as legal to review it um because then they'll always come back and actually one cool thing about that is that you'll often uh be able to fix up your contract by having their own legal team review it because you have like lawyers it improves over time yeah yeah going through it and then like telling you oh no you got to change this to that and obviously it's not like they're trying to sabotage yours they're just fixing up the language especially if you're adding new terms
Starting point is 00:27:33 like like with ours like we have updated it over the years and again i'm not a lawyer so the way i write is not like a lawyer but they so they'll always edit it for me and i'm like oh yeah that's what i meant to say okay perfect perfect and it's like okay now we keep it it's like uh yeah this is a little quick tip about free legal advice you know yeah yeah always ask their legal department to review it and tell you if it's good to go or if they want any changes because again it always makes it seem like you're open like it just avoids issues later down the line if anything does come up but really it's just to make sure again you guys are both on the same page. And added bonus, they'll fix up your bad grammar.
Starting point is 00:28:10 Crossing the T's and dotting the I's. Yeah. So are you all good on this tip? Move on to the next one? Yeah. Yeah, you're good. You're good. We were covered quite a bit.
Starting point is 00:28:25 So the fifth tip is cancellation and rescheduling. And I feel like this has happened to every production company at one point or another because sometimes things happen where a client needs to reschedule or cancel something last minute. And honestly, like it happens. So it's not like you can expect that it won't happen no matter how tight your contract is. And sometimes there are acts of God. Like, for example, if you have like a CEO that has to come in to record something on a certain day and they're flying in from another country, their flight gets delayed or something like that or something that is really out of the control.
Starting point is 00:29:04 There are you can place terms in situations where that is where you can reschedule for that but the the point of this is essentially to make sure you're not lenient where a client chooses to cancel for just the sake of canceling at the at the last second right like do you want to go a little bit more in depth on that dario yeah like this is a problem we we've dealt with a lot in the past and even i mean still to this day like sometimes our projects get postponed and whatnot uh the approach we've taken to this before we get into the nitty-gritty of the contract details is if it's a good client like the first time we'll let it slide and we'll kind of say
Starting point is 00:29:43 like okay this time we'll make an exception but if it happens a second time we're gonna start adding a penalty to it and we have made a recent client aware that we are we would have to add a not really it's not really a penalty it's more of like i can't i gotta pay the the freelance or something or something right like yeah because you've booked we were essentially booking the crew and the team for that day. So they've had to turn away work. We've had to turn away work for that day because of that case. And then if the client cancels at the last second without the chance for anyone to actually be able to potentially find other work,
Starting point is 00:30:20 everyone's losing out for faults that are not their own, right? So everyone needs to be compensated at least this is to be clear this is on the production side of things this doesn't mean that like say if a shoot is cancelled or rescheduled that the entire invoice or the entire project has to be paid for it's more so specifically the production costs on that day specifically yeah yeah yeah only the again because it's usually well it's related to a shoot anyways a shoot date right um the the time limit we put on it is that they need to give us at least 72 hours we used to have 24 hours i don't know why we put it at 24 because
Starting point is 00:30:58 that's like the day before that's the day before because i think what happened is we didn't have that and then we had some clients canceled the day of early on remember this was early on it happened a couple of times and they were canceling the day of and then we were getting we got annoyed with that so we put 24 hours and then i think just last year we're like why we doing? I put a week and then I was getting pushback from some clients when legal was reviewing it. So I put 72 hours. legal can make suggestions too but on situations like this you have to also find what works for you and your business and your processes if 72 hours is enough time go for it if you need a week then then that's another thing you might get pushback i was getting i was getting pushback from legal on on the week it's interesting maybe if it's like um i guess i guess it depends i think legal i think it was to make it easier i i think it was some some legal departments were giving me uh we're giving we're
Starting point is 00:32:15 giving me pushback and then i also was thinking about the fact that on average a video is going to be about the whole video process is going to be under a month right so like a week notice sometimes it's too short is too long because like let's say on average like it's about a week of pre-production what if it was five business days did i don't think it would make it it's too tech i think 72 is fine i there was a reason it was because like on there was a reason it was because again pushback and then on average it shouldn't you don't we don't have that much time for most of the projects anyway so it would be like early on in pre-production they would have to do the the rescheduling but usually a rescheduling happens you know the week of
Starting point is 00:33:03 production right it's very close to the production date something comes up. Yeah. Yeah, I guess it varies. And I think if you're doing bigger projects, too, I think that's where this might also this might also vary. You know, I think the 72 hours is a good standard for straightforward corporate video content because there's more flexibility and things like that but then if it's like much larger campaigns or projects where it's harder to
Starting point is 00:33:33 reschedule and move things like that then maybe there could be something longer like a week or two weeks depending on depending on what kind of work or projects you're doing. But again, it really depends. This is just our simple standard approach for, like say if you were to work on a corporate finance video or something like that. Yeah, if you were working on a much bigger like commercial level project and they want to reschedule,
Starting point is 00:33:58 like let's say it's 50K and up type of production. I would put at least a week the other thing is people are flying in sometimes for projects you know like like for example like when i did that shoot for one of our clients last year where i had to fly out to seattle and to uh and to north carolina imagine if 24 hours before the shoot i I'm at the airport. He's like, Oh yeah, shoot is canceled. It's like, okay, all the tickets have been booked. All the time has been booked off, you know? And then it's like, that screws up a lot of other aspects of the shoot, right? There should probably be something in your contract with your freelancers as well. That's,
Starting point is 00:34:40 that's, uh, that has the same number in there as well right so if you're making them sign your contract they should probably say if it's like a rescheduling clause in there as well that matches the one in this contract because I'm just thinking about it again the one we have here is kind of hefty and from most of our projects is fine if we reschedule at least once it won't cost us a lot but let's say like we have a project where again it's like a commercial and it's like 50k and up just in production costs and 72 hours before they let you know and you have like let's say for example
Starting point is 00:35:13 actors flying in like you you'd still have to compensate those people you'd be under on the production so i would change that to probably a week or longer if we have a bigger project like that. And then we also have terms in there saying like if they break that they owe the whole production cost and we can't book in another date until that's paid. Yeah. Because think about it. You might be under if you have to do if you can't if you have to pay everyone that was involved. if you have to do if you can't if you have to pay everyone that was involved let's say something at least 70 percent because that's in what their contract that's in their contract or whatever whatever then you'd you'd be under on the project so i would like again you should put terms in there
Starting point is 00:35:58 that really protect you right just in case because again if it's a smaller project whatever but if it's like a bigger one that's what will probably scare me the most is that oh i might go under because of this especially when you have more and more people uh involved that are important for the project if you have like you said if you have to hire talent um whether they're flying in or not like it's it's hard to organize things like that as well to find people who are available because you might book that particular talent because they were right for the project, but they're only available that day. And then you cancel and then they're not available for the next two, three weeks. Then what? What are you doing for your project?
Starting point is 00:36:37 Then your project gets delayed at that point too, right? So this is a way to also help protect your client to make sure that everything is in place to be there for the shoot. But again, you figure it out your own situation. What? Sorry. Sorry. Go ahead. Go ahead. Figure out your own situation. Yeah, I was just saying like, like, just determine what's right for your situation. Right. What's right for that specific project. Every project is different.
Starting point is 00:37:04 for your situation right what's right for that specific project every project is different you know weigh in what you think is gonna what kind of workload or resources are going to be needed for that project and just adjust the details in your contract accordingly what we're again what we're just suggesting is like a good baseline to start with yeah and you touched on like uh like the timeline gets extended and you're no longer available there's three three three three timeline extension parts that we have in our contracts and the first one is just like a regular timeline extension the second one is like timeline extensions resulting in crew unavailability and then the third one is timeline extensions resulting in last productions unavailability um those are good ones to have as well because
Starting point is 00:37:49 the first one just really deals with what happens if the timeline gets extended um so for example here what i have is uh if it gets canceled less than 72 hours and they don't get a refund. Just kind of clarifies the details of that extension. The one resulting in crew unavailability. So if a crew member was specific to that project and they're no longer available, they can't just say like, oh, no, we still need to do it on this date with that person.
Starting point is 00:38:28 Let's say, for example, I don't know, like let's say, what do I have here? I've really gone through these since I put them in the contract, but additional cost of their... I think you touched upon... Oh, no, no, no no the key thing is uh
Starting point is 00:38:47 the fee will be subject to variances depending on the new freelancer slash crew member that takes on the project all right so yeah yeah i put that we don't guarantee the same rate as the previous individual nor that the rate will be discounted based on the work already completed the previous individual nor that the rate will be discounted based on the work already completed yeah this was uh this was mainly because of editors so kill do you want to touch on that yeah so like for example like a lot of production companies we hire and source out other talent not just for production side of things but also also on the post-production. And editors all have their own different processes. That's actually a big one that can very much factor in the costs as well. Some have different day rates, some work very differently compared to other ones.
Starting point is 00:39:36 So this essentially helps us cover our basis if we need to adjust the entire process. So for example, if we were planning to do it with one editor whose process was to get it done within a certain timeline or in a certain type of review process, that's what we had planned for. But if it was canceled and they're not available, we have to work with a new editor or a different editor who works a little bit differently. So like obviously LAPS has a certain level of standard of production quality and bio that we go through. But a lot of the time we still have to adapt to how other people also work. Right. And that is what essentially this clause helps kind of cover our bases on when that happens. Yeah, we mainly added it because of editors editors but i guess it's also applicable to
Starting point is 00:40:25 other crew members as well i would say more so like for cinematographers not so much like yeah makeup audio grip or gaff because those prices are kind of standardized i think the cinematographer one is the one that has like more of a. Obviously, you should always be adding your juice on top of whatever the rate is. But let's say, I don't know, for some reason, most of the cinematographers you need for that day... Most of the cinematographers that you know for that day are busy and you have to go one level up
Starting point is 00:40:58 above your regular rate. Then it kind of protects you on that end as well. For the part resulting in our unavailability, what I put in there is basically we'll have to compensate. Oh, okay. So basically, essentially, if we're no longer available for the project, then they have to compensate us for all the work done until then. And we're not on the hook for not finishing the project, then they have to compensate us for all the work done until then. And we're not, we're not on the hook for not finishing the project if we're no longer able
Starting point is 00:41:29 to do it based on the timeline requirements they have. That's what that clause is there for. Essentially this, what this covers is, for example, if you've determined a timeline with a client on when certain deadlines and, uh, are going to be there for deliverables but you also outline for example when we send you a draft we need the we need the notes within 24 to 48 hours because that'll keep us on track and then if we send a if we send a draft and it takes and it takes uh how long like say a week for us to get the notes that delays the entire project by a week not at our fault but because the client needed more time to look into it right so this is what you would have to discuss also with your client at the beginning of the project
Starting point is 00:42:17 it's like hey the way we work when we send over a draft we need notes within 48 hours is that enough time for you to be able to review everything and if they say this is where they can say no like we like we need maybe at least three four days because we have to look at it then send it over to so and so they have to look at it then we have to discuss and confirm it's like okay then from there you can determine all right say you need an extra week between each draft then you can give an alternate timeline based on that so this is where you determine a lot of these things early on in the in the project discussion but essentially if it takes longer if it takes longer to get notes then yeah yeah i i would say
Starting point is 00:43:00 the reason we put that in is we is and the if if you're referring to that one it wouldn't be that's one yeah not if it's like a week delayed it's more like it's been like three months and it's like you're still on like we didn't get feedback on like the rough cut type of stuff type of situation it's more like for those type of situations these are outliers the ones that you're talking about. I'm talking about the more common ones of why certain projects can get delayed here and there. I guess this is not so much about our unavailability,
Starting point is 00:43:31 but this can also outline why projects can get longer. What you're also talking about is those outliers where we've done the work with the client and then all of a sudden we've asked them, we're the last ones to have emailed them and asked them it's like hey send us the notes here's the video you can comment on frame io and let us know your feedback and then they just for like two three months just completely disappear on us and then maybe after that they're like oh uh i guess we didn't finish this project uh let's uh
Starting point is 00:44:02 move forward right it's like like look we're, we're not there to chase our clients, right? Like some people will say like, oh, why don't you just send follow-up emails? And we've done that in the past. We do that. We do that. And we have done that in the past. And a lot of the time it's clients themselves get busy, right?
Starting point is 00:44:22 So we're not going to send an email every single week, right? The reason we added that was because of those type of projects but not like reading it out loud i think it's just meant to protect you from let's say the production date gets moved into you know a day where you and i would both be unavailable and the client specifically wants like a producer from, or like a producer from LAPS needs to be there type of situation. Yeah. Then I would say that's like a get out of that situation free card. But the reason we put it in was because like in the post,
Starting point is 00:44:59 on the post side, we were having some issues where like it was getting delayed by months or like they would just like, it would just disappear on us but i guess this is also good for let's say they paid the deposit i guess it's more so on the post actually because uh if it's production related on the post at the post yeah because on yeah it's all because every client, it varies in terms of how long it takes them to review videos sometimes. Like for example, we've had guests on the podcast in the past who have talked about their specific,
Starting point is 00:45:32 like one to two month process period where they're very strict on the 24 to 48 hour feedback timeline. And if they don't get that, then it's out of their hands at that point. You know, it's like, okay, it's going to take take a week whereas like you could have gotten two or three drafts done within like say one to two weeks if each draft took at least a week uh to get feedback from then you also need time to edit it so that gets extended even further so two weeks turns into six weeks you know
Starting point is 00:46:02 and that's what this essentially mostly will protect for and and that's where i see this one's value most of the time those other ones you were talking about the outliers those there's a reason they're called outliers it doesn't happen all the time uh but it does happen still at the end of the day so i think also i said it might not be applicable to production but i think it actually is because let's say they need the final video done by a certain date. But they, I don't know, they only have a week of availability for the production after rescheduling it. And we're shooting that whole week and we can't do it. Then I guess, yeah, it would protect you in terms of like, hey, you paid the project management fee or deposit plus the pre-production and we have done that stuff but we can no longer do this project i guess any other if you didn't
Starting point is 00:46:53 have that in you might be liable to at least give a portion of the the pre-production whatever back but in this case you're basically saying no what you guys have paid so far is i can't give that back so it does protect you on that end this is also in relation to uh to things that happen that change as the project goes right there are also situations like uh like one of our current clients that book us in every year for certain timelines for rush edits right so for example if their availability is say for example on um is on like uh is on like a tuesday and they would need the video by the friday or the saturday you can plan for that right you can plan for that you you you um you build it into the cost as well for that rush edit booking off the editor's time our time and the and the preparation time for that
Starting point is 00:47:42 then that's fine but that's why you need preparation. So you know how to go about that. If we schedule a shoot day for one day and the final deadline is two weeks out from that, right? And it's a hard deadline, but then the client reschedules that shoot day to a week before that deadline, we haven't been able to plan for that, right? And that's where the situation can get very tricky because people haven't been booked off like that you know like to be able to adjust to that and and things change right so it's it's it's tricky in those situations this ties into the um there's a section in here that is not is related but it's not in this part of the contract and that's the revision process so i actually include our revision process into the contract but i put
Starting point is 00:48:35 it right after the service description section that is you just put like a line and then below that it's just revision process right and over there uh i basically go through like how much a minor revision costs a major revision costs and then what this step-by-step is so like you get a rough cut then a fine cut then the final and then i detail i go into detail about what each one is and uh another thing we put in there is the feedback part. It's how much time we need for feedback and then how much time it takes us to work based on that feedback and then the consequences of not following those timelines. So you should put that in there just to cover yourself
Starting point is 00:49:18 because you never know. Again, it's easier to have them sign off on this stuff because then they can't say you never told us because then the contract you sign the contract you're aware of everything yeah and essentially you're highlighting what potential challenges can always arise in a project and we're outlining how we mitigate those challenges so that they can expect that there won't be any hiccups going forward because we have already addressed any potential possible challenges or issues that could come during a project.
Starting point is 00:49:52 And we know how to work around that. So that's actually a benefit to the client as well right there. Anyways, I think we've covered this pretty well at this point. Is there any last notes on this point? No, that's it. We can move on to the next one. covered this pretty well at this point is there any last notes on this point or i think no that no that's it we can move on to the next one yeah so the sixth one is indemnity and liability so give a little bit of a breakdown of what that what that entails it's very very straightforward all you're basically saying in this section it's literally like two sentences all you're saying is basically that you're going to hold each other uh you're going to basically not not go after each other
Starting point is 00:50:33 and if you do the most you can go after each other is the total cost of the project that's it so kyril if you want you could just read it out so they understand. It's just this section here. Yeah. So here's our example. So each party shall indemnify and hold harmless the other party from any from and against all loss, liability, costs, charges, claims and damages relating to or arising from a breach of such party's representation, warranty, or agreement contained in this agreement. Keep in mind, these are our contract terms. Dario and I are not lawyers, so this is not legal advice necessarily in terms of what we need to do. This is an example of what we have in ours.
Starting point is 00:51:21 This is what we have in ours. We're not telling you that this is exactly what you need to do when you're creating your contracts. Get it reviewed by a lawyer. Make sure that you have all your all your all your details clarified with a professional, you know, like like we've done it ourselves and we're just sharing what works for us. By all means, bring up these points to a lawyer on whether you should include it for yours. And then they'll, they will advise you on what's best for you. So that's just a little, um, not legal advice. Yeah. Yeah. What, what, what is that called? I am not a lawyer. Like, uh, the, the, the release form or something. I forget what it's called.
Starting point is 00:51:58 See, this is why we're not lawyers. Yeah, I know. I can't even, I can't even, I can't even remember what the protection term is it's called a disclaimer i am not a lawyer this is when if this is where we lost the rest of the people that were listening to the podcast at this point yeah these guys are these guys are frauds at this point these guys are hacks yeah anyway so there's that one and then finally our last one is non-solicitation clarity no no no tell them read out the last bit read out the last oh right yeah i didn't i didn't read out the last each party and this is the part following that so notwithstanding yeah notwithstanding anything to the contrary contained herein the maximum liability of any party here under shall
Starting point is 00:52:45 be the fee paid for services rendered by lapsed productions pursuant to this agreement it keeps everything contained within the confines of this particular project that's essentially what it does that that's the funny part about that is that that section confuses the hell out of me because the part before it basically says you're going to hold the other person harmless if something goes wrong but then the section following right the the next sentence is basically like if you are going to sue the most you can sue is for the fee paid so you're like but you just said you're going to hold the other party harm this is why i'm not a lawyer why do we have this why do we have this in here what what lawyers said that we needed this? Well, the original lawyers that did our contract put it in there. And then, like, everyone else is fine with it.
Starting point is 00:53:31 Like, I don't know. No one has said no. So here's the thing. This is how we got our contract done. So when Carol and I started back in 2014, We were in our last year of uni. So I knew of the... Oh, no, we just finished. Something like that.
Starting point is 00:53:49 No, no, we were still in uni, but we were getting close to the end. So I was... It's funny. I was part of the business law program at Ryerson. And even though I kind of don't understand law now, I understand a little bit. This is why he went into video. He was not hacked out to be a lawyer. It's just too much reading, man.
Starting point is 00:54:07 Too many essays. I never figured out how to write essays properly. Anyways, they had this thing called the law clinic, whatever, right? In our last year, you basically got assigned a company and you did legal documents for them with the help of one of the Bay Street law firms. I forget which one. I think it was Miller Thompson. So basically when we started our business, I was like, oh, I'm signing us up for that because we can get our legal documents done like a Bay Street firm. I think it was Miller Thompson. So we got them to work on our contract. So they they're not stupid. They're
Starting point is 00:54:42 like one of the they're like one of the top five in Canada. So if they put it in, I'm sure there was a reason why they put it into our contract. You know what? This made me realize something. So another fun fact, Dario went for business and law and I went to Ryerson for marketing. So they, we also had a marketing clinic as well, but it wasn't a clinic. It was a marketing capstone thing. So the law one was very useful for us because it got. It was a marketing capstone thing. So the law one was very useful for us because it got us started with a baseline for our contracts. But now I realize, yeah, it's true. We actually had a real firm doing the work, just overviewing the work of the students. Whereas the marketing clinic was just literally having students do a marketing
Starting point is 00:55:20 plan for us with no experience or anything like that. And I was always wondering, like, why was that marketing plan that was presented to us not that great? It actually taught us what not to do rather than what to do. It's funny. I remember when they were presenting it to us, I remember looking at them and going, they didn't do the work. How do I know? Because when I don't do work, I present like that.
Starting point is 00:55:46 My favorite. Yeah do I know? Because when I don't do work, I present like that. My favorite? Yeah, I know. You know, it's funny because I was also in that class too, right? So I was a client and also a student, but I didn't do it on my own company. I did it on another business. So I saw what that... You should have done it on your own company. It would have helped us out more.
Starting point is 00:56:02 No, it would have been... How do you say? No, it's a conflict right but what it taught me was like okay so now i know what not to do here and then i took that learning and then i applied it to our action to my group's project and we ended up getting a 90 but anyways so and that's that that's how we got our contracts through a legal clinic as a starting point. So if people... Actually, that's a good suggestion for any production company starting out.
Starting point is 00:56:32 Reach out to your university or any university that is looking for businesses to do legal practice work for. Then that could potentially be a good start. If they offer it. Yeah, yeah. So Ryerson is one that offers it. It's no longer called Ryerson. Yeah, sorry, Toronto Met or whatever. We don't go to the Met, okay?
Starting point is 00:56:56 Anyways, final tip for our contracts is non-solicitation clarity. So take it away, Aaron. Hey, take it away, Aaron and it's a second last one there's a bonus one if you made it this far there is a bonus one believe it or not uh non-solicitation so a funny story about this i couldn't figure out this word i couldn't figure out what the correct term like this was the word i was looking for non-solicitation but i could i didn't know i couldn't figure out i'm like it's a word it's not this one but it's that uh and this is why asking their legal department to review it is helpful because they then told me to change it to non-solicitation i put something so stupid um like i forget it was it's so dumb I can find it
Starting point is 00:57:46 what was it it was like no talking to the crew no it was like it was really stupid I remember going like it's not it was like the slang for not solicitation it was if you want to if you want to cut
Starting point is 00:58:01 this out of the actual podcast I can go look for it. But it was like the slang word for that. I forget. I don't remember, but it was the slang version for it. I was like, I can't figure out. It's got to be this. But they then told me, no, you got to change it to this.
Starting point is 00:58:19 And I'm like, oh, that was the word I was looking for. So what does it entail exactly yeah non-solicitation of crew members or employees is basically they can't go and hire your freelancers or you know employees behind your back because i'm sure it's happened where your freelancer hits you up it's like yo your client asked me to shoot this for them what should i tell them right like it's happened to all of us at least or sometimes they don't even reach out and that's when relationships break down too but the thing is if they like again this is just in there to like if you got one of those you know clients that you really don't like and you're like listen i'm prepared to go to war with this guy uh but for us personally we've
Starting point is 00:59:06 never had a situation where the freelancer didn't tell us or they might have not told us but we would have noticed it right um but we have had situations where a very few amount of clients have tried to reach out to the to the freelancer and the freelancers are like yo what what's going on and then where was like i know we've told the freelancers are like, yo, what, what's going on? And then where was like, I know we've told the freelancers like, Oh, okay. That's good to know. Um, I get, I don't want them as a client anymore if they're doing that. So if you want to go ahead, that's what we've done. Yeah. It's kind of weird if they, if they're going to go and do that,
Starting point is 00:59:39 you're kind of like, okay, I thought, I thought we had a thing, but if you just want the cheapest thing, then go for it. But I'm not going to... Next time you come here, I'm going to charge you a lot more as punishment. Yeah, the funny thing is that this is more common than people realize
Starting point is 00:59:53 because we also collaborate with a lot of other production companies, people specifically that have been guests on the podcast as well. And we've helped execute projects for them in Toronto for their own clients. And then we've had randomly emails where people send us, it's like, Hey, like we worked with you on this. Can you quote us for this? And then I'm like, wait a minute, wasn't this their client?
Starting point is 01:00:15 And then he was like, yeah. So we called them and let them know. It's like, Hey man, what the hell is going on? Like even their surprise is like they're like what he went to you man these guys are cheap yeah yeah yeah they were expecting something cheap so we give them an expensive quote to make them realize how dumb that decision was and usually with that situation we always say like what do you want us to do like because it's your it's your client and the like we always say like listen go talk to we we did it through that client like we did it through that production company so go talk to them first yeah go talk to them it's like like this isn't what we do like yeah yeah like it's almost like go get the go get the blessing from them to come work with us because like we don't want to get in
Starting point is 01:01:02 the way like if they're not happy with it talk we make them talk to the boss uh not the boss we make them talk uh no what is it what is the phrase let's go get the blessing because it's like i don't want to step over i like this is all an industry of like connections i'm not burning the situation we make them uh confront the situation to hold them accountable to it's like it's like it's like listen you're trying to go behind their back go tell them how you were trying to do that yeah it's just awkward man it's like i don't because it's like look if you're doing that to them you're gonna do it to me so even for us it's like why would i want to take you on as a client that i would really care for and build a long-term relationship for when you're just gonna leave me and go to someone else like i like it's gonna be they belong to the streets
Starting point is 01:01:47 those guys they belong to the streets the thing i hate is that it just makes everything so awkward you know like just go talk to them and then if they say go talk to us then okay whatever but if it's like if you just come to us i put that in there because we were doing a project for um for a friend of the guest for a friend of the show and uh we were hired just as as crew right yeah and i saw during the shoot that the the marketer was grabbing all the freelancers contact information and as i mentioned i'm like yo your client's about to leave you the marketer was grabbing all the freelancers contact information. And as I mentioned, I'm like, yo, your client's about to leave you. He's like, that's what happened. I'm like, I was like, they're grabbing,
Starting point is 01:02:38 they grabbed everyone's contact information. I was like, don't, don't, uh, don't expect more. Like these guys will drop you any second. Did they end up dropping them? No, they still do work with them. Well, I don't know how much work they're still doing with them maybe for bigger projects they bring them on but it's so like sketchy because it's like we go through the effort of finding talented people for the project then like kind of like steal our knowledge and then just to steal those people is so weird but even for the freelancer like we have had it where it's like they just say look just talk to kirolandario yeah because it's a form of headhunting almost yeah like it's kind of it's kind of like it's not cool when clients do it and
Starting point is 01:03:19 if they do it then again i wouldn't go after them legally um unless you wanted to but it's more so just to protect yourself but it's a it's a great way to spot red flags and clients because if they do that then you already know where you stand with them yeah it's a good way to kind of uh determine what the client uh or the lead's character is that point. It's a way of filtering out people that you don't really want to work with. It's like, or if in this situation, it's like, okay, so you're just looking for a one-off. So you're like, I'm not going to waste my time with this because look, the whole point of like why we're also trying to find clients is not to do
Starting point is 01:04:03 one-off projects. Like we want to try to build a relationship so that there's more consistent business coming in because there's that classic saying where it costs 10 times more to sign a new client than to serve an existing client right because the amount of time and effort it takes to to bring in a new client is very different than working with the same one year over year. Because if you're working with the same client year over year, you don't have to explain your process to them. You don't have to explain your contracts to them.
Starting point is 01:04:31 You don't have to explain the scope as much. You already understand what is needed and you guys can just kind of move through it, right? New client, you have to do meeting after meeting, call after call sometimes to really drive the point home as well, right? Like we've had that where like some new clients have come in and you'd have to have like maybe three calls, four calls over the course of a few months before they're finally ready to actually move forward with the project. And then you put in all that time and effort, but now you have a consistent client so that it was worth it, right? But why would you go through that entire process if you know that they're going to drop you like a hot potato just for a quick buck, right?
Starting point is 01:05:11 Yeah. Anyway, so those are our seven main tips. But we have, as Dario mentioned, another bonus one for you, which is? Expiration. And do you want to elaborate a little bit basically it's uh the best before date like higher laps before it expired i i think we've kind of touched on it briefly and in other points but basically it just states uh Briefly in other points, but basically it just states, again, like if it's been too long, like if the client like stopped communicating with you for a period of, I think I put six months in here, then the project is considered closed. Yeah.
Starting point is 01:06:03 Because a lot of the time, like things change for clients on their end marketing wise right so they might be working on a project and then they might realize like oh you know like our goals have changed let's just move on to something else and then whatever at that point that just basically shows that there is an actual expiration date for any kind of project but we've already kind of explained this in depth with examples in previous points but uh yeah basically basically just you know if it's been a while and you you've tried to communicate to the client and they still haven't gone back to you and it's been again here i have six months you could do something else actually i might change it to something shorter um then you can just say that uh the project is considered finished even though it might not be fully finished and no refunds will be issued for whatever work is still not completed.
Starting point is 01:06:50 So, for example, if the client already paid you the full amount, let's say $10,000, you've done $6,000 of that work. The remaining amount is just in the post, but they just won't give you feedback, won't let you know what's going on or what they want then you could just close it off at that point it's just a way to just like again and if they want to restart then you have to issue a complete new contract that's how we have it set up yeah very straightforward yep i think uh i think that pretty much covers everything. Those are our seven plus one plus two tips on what to include in there. Oh, Kiro, sorry, sorry, sorry. Yeah. I put abandoned.
Starting point is 01:07:33 I said abandoned. But another term you should include is also delaying. If they keep consistently delaying the project, then that still counts as part of what's but then you'd have to define delaying right like so delaying can't mean for example they're trying to still determine some creative elements for the project so i have delayed so what's on what i what i put here is three different options so i did like if this blah, blah, there's a paragraph of stuff. And then I put or this or this other paragraph, right? So for that is if the client, one of them is, for example, if the client has continually delayed or abandoned advancing the project for a period of six months after the signing of this contract.
Starting point is 01:08:24 So like, I think i put like for this for this option like the deposits won't be refunded or whatnot so it could be something as simple as they keep delaying the production date so let's say we were the paid uh project management fee and the pre-production and they keep pushing the production by like a month by a month by another month by another month let's say you're like listen i'm tired of dealing with this client i don't want to have to pay back the pre-production this is just like a get out of free card it's like look we it's been over six months since we signed this contract this contract is now null and void we can't give it back that so we have to sign a complete new project new contract right because
Starting point is 01:09:04 sometimes they might just be wasting your time right so it protects you with like again all the three stages pre-production let's say they gave you a deposit right this is why you have deposits this is why you have deposits so that it holds your clients accountable to to to move to see the project through right it's a motivator for that because yeah like imagine if you don't do deposits with a new client and like you have your invoices sent out later because you have your payment terms then it's like all of a sudden like oh yeah we're done we don't want to do this anymore and you have no money in your account as a result of that and all that time and effort you spend onboarding them doing pre-production prep work and all that kind of stuff then just goes out the window at that point that's what deposits are there for following
Starting point is 01:09:49 through so what i have there i just quickly read it excuse me uh is basically if um the client has paid the deposit and no pre-production work has begun then then this. The next one is like, if the client has paid, blah, blah, blah, and the pre-production work has begun, then this. And then the other one is if, like you can just include it for each stage of your process. So often with contracts, it's better to be broad than really define your stuff. But for stuff like this, it's probably better to just stipulate exact situations because again, if you ever have to go to court for this stuff
Starting point is 01:10:30 if you have different situations one of them is going to be applicable right? and it makes everything straightforward and those legal proceedings won't take a while as a result I mean, they'll probably take a while but it's more so as long having
Starting point is 01:10:45 all the options available uh to cover all your bases right so then it's less open to interpretation you know yeah but anyway like the whole point is these are all there set in place to help protect you and your client you never want to have to go back to them with the client that's not the whole point of having these you want to build good relationships and you should always be striving to do that and maintain a level of professionalism between yourself and the client in that relationship. And as long as you go by that mantra, then you're going to do great work with great people. And that's essentially the goal. going to do great work with great people and that's essentially the goal yeah and my my only note note to end this off is basically again have the legal review it if they come back with you
Starting point is 01:11:32 with changes that you don't want to do you don't have to include them just remember that like you can always push back on on their notes as well so don't just uh bend over backwards for whatever their legal team wants because sometimes it might not be in your best favor you just have to make a judgment call usually it's not in your best interest it's usually in the client's best interest surprisingly enough surprise like every time we've had to make a change uh from their legal team it's always been fine like i think they're actually not allowed to or i think that like if it ever goes to like a court the judge would probably not look favorably if it's something that was in their best i don't know i'm just talking out my you know but yeah we're not
Starting point is 01:12:17 lawyers guys that dario took a moment of pretending to be a lawyer you know you watch normally like suits back in university you know i think know? I think it's because every time we've had notes come back, it's usually from a blue chip client and their notes are nothing nefarious. I think maybe if you deal with some smaller client, like small to medium business, you might, I think maybe small business,
Starting point is 01:12:41 you might have to keep your eyes open. There's usually blue chip companies we haven't noticed anything. This is the easiest thing to just recommend if a client's legal team comes back with a suggestion or a change have your own lawyer review it and make sure it's all good that way you have peace of mind that's it just have another lawyer take a look you could also you could also probably just ask chat gpt it's like i don't understand like if it's confused it's like what does this mean actually you know one cool thing you can do is you could save your contract as a pdf uh and then say hey this is my contract feed it to chat and then say this is the term this is the
Starting point is 01:13:16 section they want to change they want to change it to this would this be in my benefit or not what does it really mean that's another thing you could do too i wonder if they're ai lawyer i wonder if there are ai lawyer systems already in place i feel like dude my my buddy was just finishing listen my buddy was just finishing up his law school and he said he was just using chad gpt to like understand and interpret a ton of them a ton of a ton of his readings oh just for him to understand the stuff and just have it explained to him in a good way that's cool well the thing is he said they would have make him read like over 100 pages a day or something so he's like he was having a hard time just getting through the work right so he would feed it to chat and have it like interpret it from and make notes and everything it's not a good thing when you think about it you know i mean if i i listen i'm just saying
Starting point is 01:14:07 lawyers are gonna if it's a supplementary thing sure if it's a supplementary thing sure but if you're not actually when you're in law imagine if like you had a doctor or a surgeon that went through medical school through chad gpt you know i don't think you'd want him under the knife i don't think you want to be under his knife i think all those professions are on the way out anyways i mean do you really are not on the way out dario buddy what are you talking about they're starting to do like remote surgeries now which means like pretty soon they could probably just have an ai do it five to ten years it's not out of the equation maybe maybe but you know they've already that's all stuff for another episode look they've done studies where uh the chachapiti gives better
Starting point is 01:14:51 medical uh and uh advice they're not advice they're able to diagnosis uh diagnose better than doctors which i'm not surprised like how can you trust someone that hasn't slept in like two days? Have you ever worked like 12 hours straight? You're like, you can't even think properly. Those guys are doing surgery. So I mean, I would probably trust an AI over a doctor in the future. Fair enough to that point. But anyway, we're digressing from this episode. But anyways, those are our seven plus one or two tips for the contracts. Let us know if there are any interesting points that you or tips that you have done for your contracts. And maybe we'll get a lawyer to review and see if it's worth it for us to put in ours.
Starting point is 01:15:37 Yeah. Yeah. Comment down below. Maybe we might incorporate it into our next contract. Yeah. low maybe we might incorporate it into our next contract yeah and if you guys have any ideas for potential topics that you want us to do some research on and kind of discuss in future cgc episodes also let us know and we're always open to that and uh thanks for thanks for watching oh and before you go we do have a blog post for this episode so if you want to see the exact clauses that we use on our contracts, I did put screenshots up on the reach point.
Starting point is 01:16:09 So if you want to know, go check out the blog post. It'll be linked somewhere here in the description. So, yeah. Perfect. Thanks, guys. Take care and see you in the next one. Thanks for listening to this episode of Creatives Grab Coffee. Please make sure to follow and engage with us on Instagram,iktok linkedin youtube and your favorite podcast app creatives grab coffee is created by laps
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