< APPLYING FOR COMMISSIONS
BUDGETING A COMMISSION
If winning a commission is difficult, making it pay can be near impossible unless every aspect of expenditure is carefully anticipated, accounted for and controlled. It is vitally important to assess the scope of the commission and to identify all the demands likely to be made upon the available budget. An enlightened commissioning body will draw up a brief and budget that both permits an appropriate artwork to be produced and recognises the artist’s right to be adequately rewarded for their labours. For various reasons (usually nothing more sinister than poor research), not all commissioning bodies are realistic about what can be done for the offered fee. In some cases though, there can be a fine line between a commissioning body seeking value for money and trying to get something for next to nothing.
Whilst there are always artists who are willing to produce a commissioned work for negligible reward, too many others in ignorance have taken on large projects only to discover in the final accounting that they have not only made no profit, but actually lost money. Simply covering costs, or even losing money on a commission to gain a wider audience is not an uncommon practice and it might even prove justifiable – provided that outcome had been predicted in advance. In most cases though, being out of pocket comes as a nasty shock to the artist and unless the exposure gained from the commission quickly opens up some significant opportunities elsewhere, such setbacks can be both disheartening and financially painful. The issues outlined in the following series of points are intended to help artists assess the financial potential of a commission opportunity.
• Establish as soon as possible what the overall commission budget is expected to cover. Be careful of apparently large fees when the payment includes all manufacturing costs. A $150,000 commission is of little financial worth if the job takes a full year of long days to complete, and runs to $125,000 in expenses.
• If the intention is to have part or all of a commissioned work constructed at a professional facility such as a foundry, fabrication shop or mason’s yard, obtain a budget price (ESTIMATE), from the contracted company early on; then secure a firm QUOTATION as soon as the design is finalised. Never automatically assume that a firm quotation will be the same as the figure as was given for the budget price and remember to allow for any EXTRAS such as special FIXINGS, TRANSPORTATION and INSTALLATION, if these are likely to feature.
• If the budget available for producing a sculpture is tight, it may be helpful to discuss with the founder potential ways of reducing the foundry fee. Do this before starting work on the master pattern. It may be that significant savings can be achieved by being prepared to make relatively minor adjustments to the overall design. Often adjustments are possible which result in little overall dilution of the original concept.
• Make a realistic calculation of the predicted hours needed to construct working models and master patterns. Remember to include any outside labour costs, such as the use of assistants. Allow for professional advice (legal, financial etc), hire or rent of studio space, the purchase of patternmaking materials and other assorted overheads. Also include time taken for administrative duties, travel and transport, as well as research, meetings, and attendance at the foundry for supervising and approving the work in progress. Add foundry fees and installation costs, keeping in mind that some form of sales tax (GST, VAT etc), will normally be chargeable on all quotations. Other business and professional fees incurred will also probably be subject to sales taxes, this surcharge is not always refundable unless the claimant is themselves registered and both charges and then reclaims sales taxes.
Taking into account all the above and any other specific items applicable to the commission, fix a reasonable hourly rate for personal labour. This rate should reflect the amount of responsibility taken on by the artist. Once all the relevant data has been collated a sensible cost prediction can be calculated. A suggested 15% surplus over the calculated base figure should then be added – this is an allowance to cover cost overruns and any other unforeseen expenses. The sum produced should give a realistic indication of what clear profit (or loss), can be expected from a commission budget.
• Once a firm quotation has been agreed upon with the foundry (or indeed any other contractor), take care to construct the master pattern within the specifications that were submitted for costing. Resist any temptation to change any significant aspect of the design without prior consultation and approval of the founder. Whilst in many countries a contract is formed with the founder on offering a firm price for the job, any such contract will almost certainly be invalid if the completed master pattern deviates substantially from the data on which the casting fee was calculated. Unexpected modifications could lead to surcharges being levied by the founder before work begins, with little prospect (at such a late stage), of returning the pattern to it’s original specification.
When negotiating payment terms with the founder, it is usually possible to arrange for a series of stage-payments to be made. These payments usually become due at agreed points in the work’s progress through the foundry. Stage payments are usually applicable to large scale projects, normally the casting fee will be in excess of $ 10,000.
Most founders are willing to negotiate stage payments without levying a credit surcharge, so agreeing extended terms with no cost penalty can significantly aid in the control of cash flow. Three or four stage-payments of equal value are usually considered acceptable, including the initial deposit, and a final ‘signing off’ payment upon the collection or installation of the artwork.
• If the foundry fee is relatively small, payment is usually made to the founder in two stages. This is known as the deposit system.The deposit system allows a foundry to accept work from a private individual or organisation on a ‘one off’ basis without the need to establish a formal line of credit, or otherwise setting up an account for what may well be a unique transaction. When asked for, deposit payments are usually made on delivery of the master pattern to the foundry, to a value of about 50% of the total casting fee, plus taxes. The balancing payment is usually made on collection or delivery of the finished cast. If for any reason the commission is cancelled before the foundry work, or specific materials purchasing commences, the founder will normally return the artist’s deposit in full.
• Founders may not be in a position to indefinitely hold open a reserved time slot for starting a casting job. Delivering a master pattern even a few days late can have a significant impact on completion dates and costs. This is especially the case if the founder is then obliged to commence another artist’s job that is submitted on time. Do not automatically expect ‘extras’ from the founder to be forthcoming without additional charge. These items can include fairly essential services like packing, transport or even storage of the completed cast prior to installation (though most founders, time and space permitting, are reasonable about this last matter).
• Read any commission contract carefully. If any ambiguity exists as to the implication of a contract or specific clause, then obtain independent professional advice. Be especially mindful of penalty clauses and consider drawing up a parallel contract with the founder or other contractor if the commissioning agency is holding the artist financially responsible for the delivery and installation of a work on specific dates (always inform the founder of any likely contractual terms before they fix their price for casting the work).
• Establish when and how the funds for a commission will be made available and find out if interim payments are dependent upon the work’s progress. Try to coordinate intermittent funding of the commission to coincide with major outgoing payments, for instance due dates for pattern materials or foundry fees (if meeting these costs is the artist’s responsibility).
• Agents, dealers, founders, architects and engineers and the other professionals typically involved in a large commission project are generally inclined to help resolve any occasional difficulties that may arise. It is always good practice to ensure that all the various individuals with an stake in the commission are aware of and kept updated on the overall progress of the work. A good many budget over-runs and related problems can be traced back to poor communication and misunderstandings between individuals or organisations. The best policy here is to never assume that someone else has passed on important information and to personally ensure that all the relevant people are contacted and informed of developments. Keep a detailed diary and relate important issues in writing, retaining carbon copies. It's your work, your reputation, take responsibility for it.
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