What does Contractual Fee mean?
Contractual Fee refers to a pre-determined amount of money that is specified in a contract and paid to an individual or company for services provided. In the entertainment industry, contractual fees are common for actors, directors, crew members, and other professionals who are hired for a specific project or role. The fee is typically agreed upon before work begins and is often outlined in detail within the contract, including payment terms, deadlines, and any additional compensation, such as bonuses or residuals.
Example:An actor receives their contractual fee after completing their role in a feature film, as agreed upon in their contract.
Example: A director negotiates a higher contractual fee for a project that involves a longer shooting schedule and more complex production requirements.
Did You Know?
Contractual fees can also include clauses for bonuses, overtime, or residual payments depending on the success of the project!
