Client Bid Specification
May 18, 2005
To: AICP General Members
From: Matt Miller
President and CEO
Re: Client Bid Specification
Recently, a number of AICP members have notified us of continued requests by clients that certain budget costs be treated as below the line or as cost plus items. The rationale for this is not due to production concerns, but because this practice is erroneously thought to be a new "standard operating procedure" and thus deserving of lesser or no mark-up. Last fall, AICP issued a documentthat gave reasons why certain items being singled out in this area (fringes, travel, casting) deserve full mark-up, and should not be treated in this manner. This document was reprinted in Shoot in January.
Still, many cost controllers and advertisers are telling procedures to remove fringes from full mark up and place them aside as a cost plus item. If you are in a situation where you must adhere to this policy, please be aware of the following "cost" aspects when discussing these pieces as "cost plus."
Fringes are paid into Taft Hartley pension and welfare plans that are governed under the federal laws provided by The Employee Retirement Income Security Act (ERISA). These laws provide that the trustees of these plans are required to verify correct contributions by the way of ... To read more download the PDF version.
Source
"AICP Roundtable Discussion." Panelists: Denise Gilmartin, AICP; Matt Miller, AICP; Frank Stiefel, radical.media; Bob Fisher, Celsius Films. ANA Production Management Committee Meeting, 05/01/07.