Let's face it - Film and TV productions are expensive projects with many moving parts - all of which can affect the completion of the project on-time, under budget.
Financial backers of media productions frequently insist on completion bonds, with clear expectations and penalties if the production exceeds budgets. If the productions are not completed by the terms of the bond, the investors can redeem their bond for cash!
Bonding companies are experts in film/TV production and have expertise in the entire film industry, including the variables which can affect film production and schedules. They have a vested interest in your film being completed on time, under budget. Frequent (daily/weekly) production reports and expenses are often required and the bonding company can impose severe corrective actions to protect their investment, including replacing directors and producers!
In addition, contingent cash reserves (often equaling 100% of the production costs) are required. Overages from the original budget may be deducted from the contingency fund.
Bonding fees can range from 4-10% of the film's budget, so that is a powerful incentive to reduce the risks and variables to filming success!
Some of the most widely known film completion bonding companies include, but are not limited to, Film Finances, Inc. (http://www.ffi-web.com) and International Film Guarantors (http://ifgbonds.com).
FLIPSFilm believes reducing risk is important to film/TV production. That's why we started this business : to cut municipal approval red tape, reduce film production variables and eliminate risk. It makes the filming experience better for cities, counties and filming companies. Equally important, reducing film production risks is a priority for the film completion bond companies, too!
When a delay can cost hundreds of thousands of dollars, everyone in the production process has an incentive to keep the project on time, under budget.