Drone Service Billing Structure Question

[AirBoudreaux]

I'm about halfway through with a 6 month construction progress shoot. This is the first one of these that I have done. I am shooting and putting together and delivering a video for the city every 2 weeks. My question is regarding billing. I'm invoicing it as 1 job and I'm curious as to the best timeline for invoicing. I would normally invoice at the end of a job, but Im curious on how it would play if I invoiced them now with a due date of the last date on the service contract? Ill add that I have a clause in the service contract, which they signed, to protect myself that states "Usage not transferred until payment is received". But like I said, that normally isnt really an issue due to the fact that ive never done a project over this length of time.

Again just curious to how you might think that comes across.

Thanks in advance for your help!

 

[FLDave]

What does this really mean?

"Usage not transferred until payment is received".

 

[FLDave]

I assume that this project has been going on for about 3 months and you haven't invoiced yet or received any compensation for your work yet. Is that correct?
Do you have any experience with invoicing and payments for this municipality? Do they have a record of paying immediately? Do they have a record of evening paying?
6 months is a long time to go on a project without payments.
What is written in the original contract?
Your business expenses continue during the entire project, whether payment is received or not. Your $0.655 per business miles add up. Your hourly time continues.

 

[Solsearcher]

"Usage not transferred until payment is received".

This is not sufficient. Have you discussed who actually owns the footage after payment? Is it yours, and you're just granting them use of it, or is it theirs after payment? I'd always suggest the former if possible, but sometimes that isn't possible.

If you're selling them the footage rather than just rights to it, then your disclaimer should read something like "All goods remain the property of (your name here) until payment in full is received."

Or some variation of that...but ensure it says "Payment in full"!

 

[AirBoudreaux]

I assume that this project has been going on for about 3 months and you haven't invoiced yet or received any compensation for your work yet. Is that correct?
Do you have any experience with invoicing and payments for this municipality? Do they have a record of paying immediately? Do they have a record of evening paying?
6 months is a long time to go on a project without payments.
What is written in the original contract?
Your business expenses continue during the entire project, whether payment is received or not. Your $0.655 per business miles add up. Your hourly time continues.

Correct. It’s been going on for about 3 months and I haven’t invoiced anything yet. I agree, 6 months is a good stretch with no payment. I could see if it were something where they aren’t getting the final product until the end, but that’s not the case. And I’m not at all concerned with them not paying me it’s the city convention commission who runs a ton of organizations throughout the city, and I have a signed service contract. They’ve already asked me to do 2 other jobs for them.

There are really no extra expenses for this one. The site is literally 2 miles from my house.

 

[AirBoudreaux]

This is not sufficient. Have you discussed who actually owns the footage after payment? Is it yours, and you're just granting them use of it, or is it theirs after payment? I'd always suggest the former if possible, but sometimes that isn't possible.

If you're selling them the footage rather than just rights to it, then your disclaimer should read something like "All goods remain the property of (your name here) until payment in full is received."

Or some variation of that...but ensure it says "Payment in full"!

It’s stated in the contract that payment only grants usage rights and I retain all copyright on all raw and produced works

 

[@Rip]

If your time is separate from the "product" I recommend billing that out monthly.
Especially if your time on this project prohibits you from taking other projects or clients. These types of nuances need to be agreed upon in the contract up front.
EDIT: Whatever agreement you have should be adhered to. If your time is lumped in to this contract you can separate it in the next one, reasonably.

 

[AirBoudreaux]

If your time is separate from the "product" I recommend billing that out monthly.
Especially if your time on this project prohibits you from taking other projects or clients. These types of nuances need to be agreed upon in the contract up front.
EDIT: Whatever agreement you have should be adhered to. If your time is lumped in to this contract you can separate it in the next one, reasonably.

Its pretty much just lumped together. Since this was scheduled to be what came out to be 11 separate shoots, and this is a customer that I would like to get in good with, I discounted this job by charging one day rate (8 hrs) and then the extra 3 shoots at my hourly rate. So this invoice is broken down into 3 line items. 1 day rate, 3 hourly rates, and then the total editing costs.

 

[Vic Moss]

All of my progression projects are billed at time of delivery. Each shoot is a "different project", so they're billed accordingly.

This should have all been set in place before the project was even started.

 

[millbah]

Pay as you go. May not be any money at end of job. But it all comes down to the agteement

 

[mwentling]

For most government type contracts, progress payments are allowable. Take the 80% of the total cost bid, and divide by the time (6 months) and bill the increments. The final 20% is due on delivery.

 

[AirBoudreaux]

All of my progression projects are billed at time of delivery. Each shoot is a "different project", so they're billed accordingly.

This should have all been set in place before the project was even started.

I cant change that now. I wanted to minimize transactions as I wanted to make this as easy of a process for the customer as possible. They have their hands in everything in my city and no doubt will be requiring this type of service again in the future. Reducing the amount of invoices and transactions was one way for me to do that.

My question was more or less how this may be perceived from the clients point of view. Its not due on upon receipt, they have until the day after the last date in the contract.

 

[Ralph thompson]

Maybe the best lesson yr learning here is to establish in your contract (agreement) before spending anytime on the project would both parties understand and agree to. You don’t need a lawyer, just both parties acknowledging whose doing what. Invoicing is a minor point, there are many things you need to put in an Agreement to insure no misunderstandings, eg
- what are the deliverables and when does the client have to pay
- insurance & who is liable if there’s an incident
- that the client is responsible for ensuring any workers agree to be in the video (effectively model release). Unionized works could take issue with being filmed.
- times and periods of access
- what specific activities have to be captured (like laying of a keystone or installing a large tank etc)

etc etc

no Agreement almost guarantees you will end up in a dispute

 

[@Rip]

Im curious on how it would play if I invoiced them now with a due date of the last date on the service contract?

I seem to have overlooked the nuance of your question.
Municipalities that I work with would send the invoice to accounts payable without flinching. They may pay you early... they may wait until the "due date". UNLESS your agreement states you will bill at the completion of the project. If you have a good working relationship, I wouldn't think they would give it a second thought. My opinion.

 

[AirBoudreaux]

Maybe the best lesson yr learning here is to establish in your contract (agreement) before spending anytime on the project would both parties understand and agree to. You don’t need a lawyer, just both parties acknowledging whose doing what.

I did do that. Everything you mentioned is in the contract. The contract isn't the issue.

what are the deliverables and when does the client have to pay

specified in the contract.

insurance & who is liable if there’s an incident

specified in the contract.

- that the client is responsible for ensuring any workers agree to be in the video (effectively model release). Unionized works could take issue with being filmed.

also addressed in the contract and is addressed each time I go to the site

times and periods of access

got that too

what specific activities have to be captured (like laying of a keystone or installing a large tank etc)

already done. I've got all 3 construction supervisors contact info and get weekly updates


Again, I appreciate all of the replies but I think some are missing the forest for the trees here and making this question a bit more complicated than it really is. At our first meeting going over the specifics of the site and what I would be doing and images I would be capturing, I told the marketing director that in order to make this process as easy as possible for them (because I want them as a repeat customer) I would capture the entire job in 1 invoice. She replied "Oh that's awesome, just invoice whenever." This contract ends on August 30 and that is specified in contract itself. The terms on the invoice (as of now) are "Payment due on or before August 31, 2023."

I have no issue with invoicing per shoot/video and I normally do. But again, making this as easy for them as possible was a high priority for me. This convention committee has their hands in EVERYTHING where I live and I've already been tagged for 2 more jobs for them.

My question is for thoughts on how it comes across if I invoice now with so much left on the job? Granted, it states on the invoice that payment isn't due until Aug 31. That's my only question.

 

[AirBoudreaux]

I seem to have overlooked the nuance of your question.
Municipalities that I work with would send the invoice to accounts payable without flinching. They may pay you early... they may wait until the "due date". UNLESS your agreement states you will bill at the completion of the project. If you have a good working relationship, I wouldn't think they would give it a second thought. My opinion.

And you see, that's exactly how I think this would go down. They would just forward it straight to the AP department. They may pay early or they may wait. Doesn't matter to me really. I just want to make sure I'm not making any faux pas.

 

[@Rip]

And you see, that's exactly how I think this would go down. They would just forward it straight to the AP department. They may pay early or they may wait. Doesn't matter to me really. I just want to make sure I'm not making any faux pas.

You could "feel them out" a bit if you are unsure. Call AP and kindly ask them what their payment policy is. (They are used to that kind of thing) Let them know you want to get the invoice "off your desk" so to speak but don't expect payment until the agreed date.. Ask them how they want you to handle it.
My Opinion

 

[AirBoudreaux]

You could "feel them out" a bit if you are unsure. Call AP and kindly ask them what their payment policy is. (They are used to that kind of thing) Let them know you want to get the invoice "off your desk" so to speak but don't expect payment until the agreed date.. Ask them how they want you to handle it.
My Opinion

I may just do that. My invoicing system actually does allow for partial payment on an invoice so I'm going to look into that as well. That way I can keep it at 1 invoice but just split the payment.

I appreciate the input!

 

[Gerry G]

I'm about halfway through with a 6 month construction progress shoot. This is the first one of these that I have done. I am shooting and putting together and delivering a video for the city every 2 weeks. My question is regarding billing. I'm invoicing it as 1 job and I'm curious as to the best timeline for invoicing. I would normally invoice at the end of a job, but Im curious on how it would play if I invoiced them now with a due date of the last date on the service contract? Ill add that I have a clause in the service contract, which they signed, to protect myself that states "Usage not transferred until payment is received". But like I said, that normally isnt really an issue due to the fact that ive never done a project over this length of time.

Again just curious to how you might think that comes across.

Thanks in advance for your help!

I would have structured the agreement to bill them monthly. That's how I have done it in the past and it always worked out fine for both sides. Include a detailed monthly report with the invoice.


Regards,

Gerry

 

[AirBoudreaux]

I would have structured the agreement to bill them monthly. That's how I have done it in the past and it always worked out fine for both sides. Include a detailed monthly report with the invoice.


Regards,

Gerry

I dont hate that Idea either. I actually sent them an email explaining how I wanted to do it and that I wanted to keep it as simple for them as possible. They said just send to just do the one invoice and they wanted to go ahead and pay in full lol. NOT A PROBLEM!

Also asked me to quote out 4 more jobs for them!