November 5, 2019: The APP (Association des producteurs publicitaires – Association of advertising producers in Quebec) is implementing a new billing policy for all advertising video productions in Quebec effective January 1, 2020.
The policy put forward for Quebec aligns with payment standards already practiced in the rest of Canada (see CPAT policies) and for reference are cited in the ACA’s 5th edition of the Marketing Communications Services Agreement (MSA).
Specifically, the new payment structure recommends that:
- The first payment will be equal to 75% of the total value of the approved production estimate, to be charged as soon as the contract is confirmed.
- The second payment is equal to the balance of 25% of the total value of the approved production quote and all additional costs incurred and pre-approved by the agency. It will be payable upon delivery of the product and no later than 30 days from the date of the final invoice.
This policy is being implemented to ensure sufficient cash flow to production houses in order to cover the significant disbursements required during production.
For a more thorough explanation of this recommendation, please refer to the Policy on APP’s website (in French).
If you would like more information on this initiative, please get in touch with me or Patrick Hotte, VP, Quebec (tel: 514-842-6422 / 1-800-883-0422).
VP, Media Policy and Marketing Capabilities