8.4 Writing for budget and resources

Writing for budget and resources is a crucial skill for screenwriters. Understanding different budget tiers helps craft scripts that are feasible to produce within financial constraints. From micro-budget indies to blockbuster tentpoles, the type of budget impacts every creative decision.

Film budgets are comprehensive documents accounting for all projected expenses. Key elements include above-the-line costs, below-the-line expenses, post-production fees, and contingency funds. Writers who grasp these components can create more cost-effective scripts that align with production realities.

Types of film budgets

• Film budgets vary significantly based on the scope and ambition of the project, ranging from shoestring micro-budgets to massive blockbuster price tags
• The type of budget a film has impacts every creative decision, from the cast and locations to the visual effects and marketing strategy
• Understanding the different budget tiers is crucial for writers to craft scripts that are feasible to produce within financial constraints

Ultra low budget films

Top images from around the web for Ultra low budget films

• 

  Template:BMovie - Wikipedia View original

  Is this image relevant?

• 

  Z movie - Wikipedia View original

  Is this image relevant?

• 

  Template:BMovie - Wikipedia View original

  Is this image relevant?

• 

  Z movie - Wikipedia View original

  Is this image relevant?

1 of 2

Top images from around the web for Ultra low budget films

• 

  Template:BMovie - Wikipedia View original

  Is this image relevant?

• 

  Z movie - Wikipedia View original

  Is this image relevant?

• 

  Template:BMovie - Wikipedia View original

  Is this image relevant?

• 

  Z movie - Wikipedia View original

  Is this image relevant?

1 of 2

• Micro-budget films are made for under $250,000 and often rely on volunteer cast/crew, borrowed equipment, and guerrilla-style shooting (Primer, Paranormal Activity)
• Ultra low budgets force extreme resourcefulness but allow total creative control without studio oversight
• Scripts must utilize minimal locations, props and effects, focusing instead on compelling characters and dialogue
• Shooting schedules are very compressed, so screenplays should take place over a short time period with few major events

Low budget indies

• Budgets from $250,000 to$10 million are typical for independent films seeking festival play and limited theatrical release (Clerks, Garden State, Juno)
• Low budgets still require fiscal restraint in writing, but allow more flexibility in cast, locations, and production value
• Scripts can be more ambitious in scope, but should still avoid expensive elements like period settings, stunts, crowds, etc.
• Writers may need to creatively imply action or events rather than depicting them literally to keep costs down

Mid-range studio films

• Mid-budget films in the $10-60 million range make up the bulk of studio slates, spanning many genres (romantic comedies, dramas, thrillers, etc.)
• Screenwriters have more leeway to include set-pieces, visual effects, location shoots and name actors
• However, scripts must still demonstrate clear audience appeal and moderate financial risk to get greenlit
• Character-driven stories that hit popular genres without being VFX-heavy are well-suited for mid-range budgets (Knives Out, A Quiet Place, Crazy Rich Asians)

Blockbuster tentpoles

• Mega-budgets over $100 million are reserved for franchise tentpoles designed to be box office events (Marvel films, animated features, etc.)
• Expensive IP and internationally bankable stars are key selling points, along with spectacle that plays well in global markets
• Blockbuster scripts often feature high-concept hooks, set-pieces and epic scope that justifies the massive price tag
• However, big budgets come with intense studio oversight and pressure, so writers have less creative control

Elements of a film budget

• Film budgets are comprehensive itemized documents that account for every projected expense involved in making a movie
• Budgets are typically broken down into four main categories: above-the-line, below-the-line, post-production and contingency
• Writers who understand what elements make up a film's budget are better equipped to pen cost-effective scripts

Above the line costs

• Above-the-line (ATL) expenses cover the development phase and key creative personnel (writers, directors, producers, principal cast)
• Writer, director and producer fees are negotiated up front, and usually paid out in steps as milestones are met
• Cast compensation includes actor salaries, travel/lodging, trailer and amenity requirements, and potential box office bonuses
• Other ATL costs include rights acquisition, financing fees, insurance, and completion bonds

Below the line expenses

• Below-the-line (BTL) costs encompass the physical production, including crew labor, equipment, soundstages, locations, set design, wardrobe, etc.
• Crew rates are standardized by union contracts and vary by position, with overtime and benefits adding up quickly
• Location expenses include permits, police, catering, parking, portable toilets, and waste disposal
• Props, costumes, makeup, vehicles, animals, stunts, and visual effects are all BTL expenses that can escalate based on the script

Post-production fees

• Post costs include picture and sound editing, visual effects, music composition and licensing, color correction, titles, and video/audio mastering
• VFX are often farmed out to third-party vendors and priced by the shot, so scripts with extensive CG can balloon post budgets
• Staffing an in-house post team is pricey, but outsourcing individual services like sound mixing can also add up
• Film prints, digital cinema packages (DCPs), and video duplication are post costs that vary by distribution plans

Contingency funds

• Most budgets incorporate a contingency of 10-15% of the total production costs to cover unforeseen expenses
• Overages often result from weather delays, equipment damage, illness, creative changes, or other unexpected production challenges
• Contingency funds are not a slush fund to dip into casually, but a necessary safety net to keep production on track
• If the contingency is exhausted, producers must secure additional funding or make cuts to prevent the budget from ballooning further

Budgeting best practices

• Effective budgeting is essential to keep film productions on track and avoid cost overruns that can sink a project
• Careful planning, itemization, and oversight are key to reining in expenses and allocating limited funds wisely
• Screenwriters who grasp smart budgeting principles can avoid writing unnecessary costs into their scripts

Importance of line itemization

• Itemizing every expense in a budget allows producers to track where every dollar is going and identify areas to trim costs
• Vague or overly broad categories make it hard to pinpoint specific line items that are pushing the budget higher than necessary
• Detailed itemization also helps producers prioritize the most critical expenses if/when cuts need to be made
• Writers should mentally "line item" their scripts to identify elements that will drive up costs in various budget categories

Accounting for hidden costs

• Some significant expenses are not immediately apparent when budgeting, but can add up to major line items
• Payroll taxes, workers comp, and fringe benefits increase labor costs by 25-35% over base rates
• Transporting and housing a non-local cast and crew incurs travel, lodging, and per diem expenses that can be substantial
• Prolonged rentals, reshoots, or schedule overruns can result in unexpected equipment and personnel costs
• Screenwriters should be mindful of how "hidden" costs like crowd shots or company moves can strain a budget

Strategies to prevent overages

• Closely tracking expenses and anticipating overages allows producers to adjust spending and stay within budget
• Hiring a dedicated production accountant to manage funds, issue cost reports, and flag concerns keeps spending in check
• Avoiding "budget busters" like working with animals, children, water, crowds or excessive locations limits overage risks
• Screenwriters can help by writing within practical parameters and avoiding costly "nice to haves" that aren't essential to the story

Software tools for budgeting

• Budgeting software like Movie Magic, Showbiz Budgeting, or EP Budgeting can streamline the process and provide helpful templates
• Software programs do the math, flag union rates, and allow version tracking to create and adjust budgets quickly
• However, software is no substitute for human judgement and experience in assessing a project's specific needs
• While writers don't need to master budgeting software, understanding the fundamentals of how budgets are built is valuable

Financing sources for films

• Securing adequate funding is one of the biggest hurdles to getting a film made, especially for independent productions
• Films are typically financed through a patchwork of equity investments, debt financing, grants, crowdfunding, and distribution pre-sales
• Screenwriters who understand different financing avenues are better positioned to develop projects that can attract backers

Private equity investments

• Equity financing involves investors providing capital in exchange for an ownership stake in the film and a share of potential profits
• Private investors may be wealthy individuals, film funds, production companies, or other businesses looking to diversify into entertainment
• Equity is unsecured, so investors stand to lose their entire investment if the film fails to perform
• Investors expect a strong script, capable team, and clear path to profitability, so writers need to craft marketable screenplays

Government grants and subsidies

• Federal and state government agencies offer grants, tax credits and other incentives to support film production in their area
• Grants are "free money" that don't have to be repaid, but often come with stipulations about subject matter or filming location
• Tax credits can offset 20-40% of production costs, but are usually only available to established companies with a track record
• Writers can research and target grant opportunities that align with their project's themes, locations, or social impact goals

Crowdfunding platforms

• Crowdfunding sites like Kickstarter and Indiegogo allow filmmakers to solicit donations from the public to finance productions
• Campaigns offer tiered rewards to backers, ranging from small tokens to producer credits, based on contribution levels
• Crowdfunding works well for projects with a clear target audience, fan base, or social media reach to rally support
• Writers can help shape a compelling crowdfunding pitch and identify potential reward ideas that tie into their script

Pre-sales and distribution deals

• Producers can pre-sell distribution rights in domestic and foreign territories to raise production funds, based on the script and package
• Distributors and sales agents pay advances for the right to release the finished film in specific markets, which helps finance production
• Minimum guarantees are non-refundable advances, while some deals use the pre-sales as collateral for a production loan
• Writers should be aware of their project's distribution potential domestically and abroad, and avoid elements that could be hard to sell

Allocating resources effectively

• With finite funds available, producers must strategically allocate resources to make every dollar count towards what's on screen
• Prioritizing essential expenses, leveraging alternatives to cash, and finding ways to stretch the budget help maximize production value
• Screenwriters can aid this effort by making smart, story-driven choices that minimize waste and exploit available resources

Prioritizing essential expenses

• Budgets should be built around the core elements needed to effectively deliver the script's creative vision
• Key above-the-line talent, critical locations, essential equipment, and skilled department heads are "must haves" to prioritize
• Fancy camera rigs, luxury accommodations, or other nice-but-not-vital expenses should be cut if money is tight
• Writers can help by focusing their scripts on the most important characters, set pieces and story beats, rather than diluting the budget

Leveraging in-kind donations

• Productions can often source props, locations, vehicles, lodging, catering or other goods/services for free through in-kind donations
• Local film commissions, chambers of commerce, or businesses may provide things gratis for the promotional value or community goodwill
• Donations can range from meals and hotel rooms to major items like vehicles, boats, or production space
• Screenwriters can leave some of these details open in the script to allow producers flexibility to pursue donations

Negotiating discounts and deferrals

• Producers can often negotiate discounts on equipment/supplies, location fees, vendor services and other expenses
• Some cast/crew may be willing to defer part of their compensation until a later payment date to free up funds during production
• Agreeing to provide promotional value (logos, credits, etc.) can be bartered for fee reductions
• Writers can be mindful of opportunities to adjust the script to take advantage of potential discounts or deferrals

Balancing cost vs quality

• Producers must weigh the creative benefits of certain expenses against their impact on the overall budget
• Spending lavishly on a few key items is smarter than spreading funds too thin across every area
• Cutting corners on critical personnel, equipment or time can result in a subpar product that fails to deliver on the script's potential
• Writers should be aware of where it makes sense to spend for maximum impact, and where cheaper alternatives can work just as well

Managing budget during production

• Even a well-planned budget can go astray once the chaos of production begins, so constant vigilance is required
• Producers must closely monitor expenses, adapt to curveballs, communicate with financiers, and be willing to make tough calls as needed
• Screenwriters can help by being flexible with script changes and avoiding writing preventable budget headaches into the script

Tracking daily expenditures

• The production accountant provides detailed cost reports to producers every day to track actual spending against the budget
• Monitoring expenses in real-time allows producers to identify problem areas early and make adjustments before overages get out of hand
• Daily reports should itemize every expense and provide a snapshot of the total budget status and cash flow
• While writers aren't responsible for daily tracking, being mindful of how small costs add up can help keep spending on track

Adapting to unexpected challenges

• Even the best-laid plans can't prevent production surprises like bad weather, equipment failures, location snags, or personnel issues
• Producers need contingency plans to pivot and adapt to changing circumstances without blowing the budget
• Building in schedule padding, backup locations, and "cover sets" can minimize the disruption of unexpected events
• Writers may need to be flexible about rewriting or reorganizing scenes to accommodate unavoidable production challenges

Communicating with financiers

• Maintaining clear, transparent communication with investors and other financing sources is key to keeping them comfortable
• Producers should provide regular budget updates, proactively alert backers to potential issues, and have a plan to address them
• Surprising financiers with major overages or unplanned expenses after the fact erodes trust and jeopardizes completion funds
• While writers typically don't interface with financiers directly, being a collaborator who helps control costs bolsters confidence

Knowing when to cut losses

• If budget overages are spiraling out of control, producers must be willing to cut their losses rather than throwing good money after bad
• Delaying shooting, downsizing the script, or making other major cuts may be preferable to running out of cash mid-production
• In a worst-case scenario, producers may need to shut down the production entirely to avoid going into the red with no finished film
• Writers should be aware that producers' fiduciary responsibilities may force them to make creative sacrifices for financial reasons

Case studies: films and budgets

• Examining real-world examples of how films with different budgets were made provides valuable insights for screenwriters
• From micro-budget indies to mega-budget blockbusters, each production offers lessons about aligning scripts with financial realities
• Cautionary tales about budget overruns and creative misalignments can also help writers avoid preventable pitfalls

Micro-budget breakout hits

• Paranormal Activity (2009) was shot for just $15K, but clever staging and a viral marketing campaign helped it gross over$193M worldwide
• The Blair Witch Project (1999) used unknown actors and a found-footage conceit to deliver major scares on a shoestring $60K budget
• Primer (2004) was a brainy sci-fi head-trip made for only $7K by a mathematician-turned-filmmaker and went on to win Sundance
• These films show how a compelling high-concept hook and inventive filmmaking can overcome the limitations of an ultra-low budget

Ambitious indie overreaches

• Waterworld (1995) was an infamous example of a runaway $175M budget on an indie film, due to production challenges and creative overreach
• The Adventures of Baron Munchausen (1988) was a visionary passion project that went wildly over budget and nearly bankrupted its studio
• Twilight Zone: The Movie (1983) saw tragedy strike when a helicopter crash killed three actors during an excessively dangerous stunt sequence
• These cases illustrate the perils of letting a director's unchecked artistic ambitions take priority over fiscal and practical constraints

Studio films that recouped

• Get Out (2017) was made for just $4.5M but grossed over$250M on the strength of its provocative social horror premise and sharp filmmaking
• A Quiet Place (2018) turned a lean $17M budget into$340M worldwide with a novel concept and focused storytelling that packed a big punch
• Deadpool (2016) was a passion project made for a modest $58M by superhero standards, but became a breakout hit by staying true to the source material
• These films demonstrate how a strong script and smart creative choices can maximize a mid-range budget to deliver outsized returns

Infamous big budget bombs

• Cutthroat Island (1995) was a notorious $98M bomb that sank its studio with a bloated budget, production overruns, and anemic box office
• The Lone Ranger (2013) was a $250M tentpole that flopped hard when its convoluted script and bizarre tone failed to connect with audiences
• John Carter (2012) squandered $264M on an adaptation of a sci-fi classic that lacked a coherent story or relatable characters to justify the expense
• These major money losers show the risks of undisciplined spending on a script that doesn't have a clear vision or broad commercial appeal