# How to Budget a Commercial Shoot: The AICP Bid, Worked Through

Source: https://storiara.com/blog/how-to-budget-a-commercial-shoot
Last updated: 2026-09-14
Author: Charles Hirschhorn, Storiara

> A commercial budget is usually a bid on the AICP Bid Form, priced in lettered sections: prep and shoot crew, locations, props and wardrobe, art, equipment, media, miscellaneous costs, director's fees, and talent. The production fee and insurance are added on top, and a weather day can sit in contingencies that aren't billed unless used. The two-day example here totals $185,016.

## Settle the bid terms before you price anything

A commercial bid answers a brief from an agency or advertiser, often against two other companies. The AICP's own best practices note that multi-bid jobs are typically limited to three directors or companies. Before the line producer opens the bid form, a handful of answers change the number more than any rate will. The AICP Bidding Reference Guide lists these among its first questions:

- Is the proposed budget "all in"? Does it include post, talent, VFX, music, stills, behind the scenes, and social elements?
- Is the job firm bid, cost-plus, or a blend?
- Is the talent SAG-AFTRA or non-union?
- Will the job be covered by the agency or advertiser's wrap-up insurance, or should production bid its own insurance?
- What are the deliverables? A :15 deliverable from a script written as a :60 is a different shoot.
- Will the aspect ratio vary, for example a vertical version for social?

Write the answers into the bid's notes page. When the awarded job changes (an extra vertical cutdown, a second hero product), those notes are how you show the change is new scope, not an overage you have to absorb on a firm bid.

## The job

BRIGHTSIDE COFFEE, a fictional spot: one :30 and a :15 cutdown, plus vertical versions for social, shot over 2 days in a working café. Talent is SAG-AFTRA with 2 principals and 12 background actors. Editorial, music, and finishing are bid separately by the post company, so this is a production bid only. Every rate is an example.

## The bid, section by section

The AICP Bid Form's summary page runs A through O for production costs, adds section P for additional estimates and breakouts, then the production fee, insurance, and a contingencies line that isn't billed.

| Sec. | Section | Detail | Total |
|---|---|---|---|
| A | Prep crew | Line producer 5 days x $850; production supervisor 4 x $600; 1st AD 2 x $800; DP 2 x $1,500; location scout 3 x $650; gaffer and key grip scout day 2 x $700; PA 4 x $300 | $15,800 |
| B | Shoot crew | 23 lines at $19,350 per day x 2 days | $38,700 |
| C | Prep and wrap expenses | Scout vehicles, office, prep meals, wrap shipping | $3,500 |
| D | Location expenses | Café site fee 2 shoot days x $6,000 + prep/wrap day $3,000; permits $1,500; security and parking $2,000 | $18,500 |
| E | Props, wardrobe and animals | Hero product and props $3,500; wardrobe $4,000 | $7,500 |
| F | Studio costs | None | $0 |
| G | Art department labor | Production designer 5 days x $900; 2 set dressers x 3 days x $500 | $7,500 |
| H | Art department expenses | Dressing, signage, rentals | $8,000 |
| I | Equipment rental | Camera 2 x $3,000; G&E 2 x $4,500; grip truck and generator 2 x $1,200; sound package 2 x $450 | $18,300 |
| J | Media | Drives and shuttle drives for editorial | $1,000 |
| K | Miscellaneous production costs | Catering 2 days x 70 x $35; craft 2 x $400; walkies $400; vans $1,800 | $7,900 |
| L | Director's fees | Creative fee covering prep, 2 shoot days, and post consultation | $15,000 |
| M | Talent | 2 principals x 2 days x $1,000; 12 background x 1 day x $250 | $7,000 |
| N | Talent expenses | P&H 23.5% on $4,000 principal pay ($940); payroll taxes and fees 18% on $7,000 ($1,260); casting $2,500 | $4,700 |
| | Crew payroll fringes | 18% example on A, B, and G labor ($62,000) | $11,160 |
| | **Production costs** | | **$164,560** |
| | Production fee | 10% of production costs (example) | $16,456 |
| | Insurance | Production package (example quote) | $4,000 |
| | **Bid total** | | **$185,016** |
| | Contingencies, not billed | Weather day (below) | $40,283 |

The shoot day in section B is: line producer $850, production supervisor $600, 1st AD $800, 2nd AD $600, DP $1,500, 1st AC $650, 2nd AC $500, DIT $700, gaffer $700, best boy electric $600, three electrics $1,650, key grip $700, best boy grip $600, three grips $1,650, sound mixer $800, boom operator $550, two hair and makeup artists $1,300, stylist $750, wardrobe assistant $450, prop master $700, food stylist $900, four PAs $1,200, and video assist $600. That's $19,350.

The labor base for fringes is $15,800 + $38,700 + $7,500 = $62,000, and $62,000 x 0.18 = $11,160. Adding all the section totals and fringes gives $164,560. The production fee is $16,456, and $164,560 + $16,456 + $4,000 = $185,016.

## The production fee and what it's charged on

The production fee is the company's markup. Its percentage, and which sections it applies to, are negotiated with the agency. In this example it's 10% of everything above it, including talent and fringes. If the agency asks that talent costs carry no fee, the fee base drops by $7,000 + $4,700 = $11,700, and the fee drops by $1,170. That's why the bid form lets you break out handling fees on talent and talent expenses separately. Put the fee terms in writing with the award.

## Talent: P&H, overtime, and what's outside the bid

SAG-AFTRA's help center says the 2025 Commercials Contract raised the pension and health contribution rate from 20.5% to 23.5%, with JPC authorizer companies at a reduced 19.95%. On the $4,000 in principal pay above, the difference between the two rates is $4,000 x (0.235 - 0.1995) = $142. Use whichever applies to the signatory company.

The $1,000 per principal per day is an example figure, not the session fee on the rate sheet. Get the session fee from the current SAG-AFTRA commercials rates. Overtime for principals, per SAG-AFTRA, is time and a half for the 9th and 10th hours and double time after that, in hourly units, so a long café day shows up in the talent line as well as crew. Run crew hours through the [overtime calculator](https://storiara.com/tools/overtime-calculator).

Use fees and residuals depend on where and how long the spot runs. Confirm whether they're part of the all-in or paid separately by the agency's talent payroll before you submit, because they can exceed the session fees.

## The Low Budget Digital Waiver check

If the spots are for digital use only, SAG-AFTRA's Low Budget Digital Waiver may apply. The help center describes a maximum budget of $100,000 per production day, including session fees but excluding use fees, edit fees, and non-talent post costs. Sessions are 8-hour days, use is negotiable, and the maximum period of use is one year from the session. SAG-AFTRA also notes the waiver has been absorbed into the contract with its 2024 terms. Performers must be told at audition and booking that the job is under the waiver.

This bid is $185,016 over 2 days, or $92,508 per production day, under the $100,000 figure. Whether the production fee and insurance count toward that per-day number is a question for SAG-AFTRA, not an assumption to build into a bid. If the job adds TV use later, SAG-AFTRA says full use fees for that medium are owed.

## Weather days and contingencies

A café interior won't lose a day to rain, but the exterior establishing shots and a sidewalk scene might. The weather day here is priced as one crew day with fringes ($19,350 x 1.18 = $22,833), a day of equipment ($9,150), a location day ($6,000), and catering and craft for a day ($2,300), for $40,283. It sits in contingencies, not billed, which tells the agency what a weather call would cost without inflating the bid. Agree in advance who decides to call it.

## Firm bid versus cost-plus in practice

On a firm bid, the company is paid $185,016 for delivering the spec, and it keeps savings or eats overages that aren't caused by client changes. On cost-plus, the agency pays actual costs plus the fee, and the production company has to provide actualized costs at the end. On a firm bid, a day that finishes early is the company's margin; on cost-plus, it's the client's savings, and every receipt has to be there to bill. Either way, the bid, the notes page, and the purchase order or contract that awards the job are what you'll point to when scope changes. AICP's best practices say production companies shouldn't be expected to begin work until they have a contract or purchase order committing the agency or advertiser to payment.

## Tools for the bid

The AICP publishes the bid form as an Excel workbook with a PDF version. Hot Budget, an Excel-based program, and Showbiz Budgeting both include AICP-style templates; see [Storiara vs Hot Budget](https://storiara.com/compare/hot-budget) for how a feature-oriented tool differs. The [commercial production budget template](https://storiara.com/templates/commercial-production-budget) uses the section letters above, and the [commercials solution page](https://storiara.com/solutions/commercials) covers scheduling and call sheets for spot work.

## Frequently asked questions

### What is the AICP bid form?

It's the standard budget format for commercial production in the US. The AICP introduced it in 1975 to standardize bidding on commercials, and it now comes as an Excel workbook and PDF with lettered sections from A (prep crew) through P (additional production estimates), plus lines for the production fee, insurance, and contingencies that aren't billed.

### What's the difference between a firm bid and cost-plus?

On a firm bid, the production company generally agrees to deliver for the bid price, keeps any savings, and absorbs overages that aren't caused by changes from the agency or advertiser. On cost-plus, the client pays actual costs plus an agreed fee. Some jobs blend the two. AICP's bidding guide lists it as one of the first questions to settle.

### What is the SAG-AFTRA pension and health rate for commercials?

Under the 2025 Commercials Contract, SAG-AFTRA says the contribution rate rose from 20.5% to 23.5%, with a reduced 19.95% rate for JPC authorizer companies.

### What is the SAG-AFTRA Low Budget Digital Waiver limit?

SAG-AFTRA's help center gives a maximum budget of $100,000 per production day. That budget includes session fees but excludes use fees, edit fees, and non-talent post costs, and the commercial can only be used on traditional digital platforms.

## Sources

- [AICP Bidding Resources (AICP Bid Form, 2023 update)](https://www.aicp.com/business-resources/business-affairs-information/bidding-resources)
- [AICP Bidding Reference Guide, 2026](https://aicp.nyc3.digitaloceanspaces.com/content/assets/editor/PDFs/AICP-Bidding-Reference-Guide-2026_FINAL.pdf)
- [AICP Suggested Best Practices: Bidding, 2026](https://aicp.nyc3.digitaloceanspaces.com/content/assets/editor/AICP-Suggested-Best-Practices-Bidding-2026_FINAL_.pdf)
- [SAG-AFTRA Help Center: Pension and health increases in the 2025 Commercials Contract](https://servicesagaftra.custhelp.com/app/answers/detail/a_id/2765)
- [SAG-AFTRA Help Center: Low-Budget Digital Waiver answers](https://servicesagaftra.custhelp.com/app/answers/list/kw/2026%20low%20budget)