Terms + Conditions

1. General
a) Client work-in-progress meetings have been taken into account, however should the situation arise that several additional meetings are needed during the course of the project, then the agency will inform the client of additional costs for approval.

b) Out-of-pocket expenses have been estimated and if there is any modification to the brief where additional expenses will be incurred, the agency will also present these costs for approval.

c) Clients’ corrections, once layouts have been approved, will be charged additionally at our Hourly Rate + GST.

d) The agency will commission, art direct and manage any specialist suppliers required to complete the project (eg photographers, illustrators, multi-media artists etc.) and organise on behalf of the client payment to these freelance specialists. Assignment of copyright in commissioned works will be retained by the agency and are subject to the Copyright Licence as specified below.

e) The agency will supervise prepress, printing and multi-media production and have estimated fees for Production Supervision. In the event the client prefers to manage production direct with a supplier, the agency will supply electronic artwork to industry standards. However, the agency can not be held responsible for the final reproduction of the project(s).

2. Exclusive Copyright Licence
Consistent with the Copyright Act 1968 (Act No. 63 of 1968 as amended), the agency can assign or license copyright to the client. Below are specific limitations for the assignment
of the copyright:

a) Proposal(s):
Any proposal(s) presented to the client by the agency can not be assigned copyright. The copyright of the proposal is retained by the agency unless the work is commissioned by the client.

b) Use of the work(s):
The agency assigns an exclusive licence to the client to use of the work(s) as specified in the project description, which is either detailed in the proposal(s)
or the estimate prior to commencing the project(s).

c) Licence period:
The exclusive copyright licence is granted from the date of publication until the expiration of 50 years after the expiration of the calendar year in which the author of the work died.

d) Requirements of payment: Copyright in the original work(s) is retained by the agency until full payment is made at the end of the completed project.

e) Archive of work(s):
Once a project is completed the agency will archive and store the project as a print-ready (press optimised) PDF. In the event the client requires a download of the work(s) from the agency’s archive, a minimum Retrieval and Download Fee will apply of $500.00 + GST. Open source files (.PSD/.INDD) remain the copyright of the agency.

3. Remuneration + Accounting Procedures
The agency remuneration is made up of time billing; rebates from the agency’s suppliers and/or the media (if applicable); plus an Account Service or Project Management Fee unless otherwise specified on the Estimate. On the few occasions where an agency rebate is not allowed by the media and/or supplier (eg talent, hire of props etc.) a full 20% Project
Management Fee applies.

4. Media
Any special negotiated arrangements with the media are passed on to the client (eg lower rates, bonus spots, volume rates etc). Media costs are charged at the negotiated rates. At the conclusion of a media contract, any rebates or surcharges will be invoiced.

5. Production (Digital / Print / Press / Outdoor / Television / Multi-media)
The costs of layouts, artwork, photography, studio recordings etc. are billed at the gross supplier’s charge or hourly studio rate plus a Project Management Fee. It is normal procedure to obtain competitive quotes and submit recommendations on any major work.

6. Other Agency Fees
At times it may be necessary for the agency to be involved in special projects on the client’s behalf (eg sales conferences, audio visual material preparation, setting up marketing plans, documentary and product films etc). Where time involvement on such projects is heavy, a pre-arranged fee will be charged.

7. Invoicing + Payment
Generally clients are invoiced monthly for media and progressively for production expenses. A statement with all invoices will be forwarded after the end of the month. For example June expenses will be billed after month-end and are due for payment by July 31st. Therefore the agency’s terms are strictly 30 days from date of Invoice. The agency/client financial arrangement is based on two vital
principles:

a) The agency will finance the servicing of a client, but will not finance their advertising or design work;

b) The agency is held responsible by their suppliers for payment; indeed should the agency make payment after the due date for whatever reason the agency’s rebate is
automatically withdrawn.

Thus it is necessary that the agency receive payment in time to pay their suppliers and the media. Should an account query arise with an adjustment necessary, it will be made on the following month‘s account, otherwise full payment is expected by the due date to ensure the client’s credit facilities.

8. Late Payment
Interest at 10.5% p.a. (calculated daily), will be charged on all Accounts exceeding the stated Credit Terms.

9. Non-Payment
The client must pay the agency any costs, expenses or losses incurred by the agency as a result of the client’s failure to pay the agency all sums outstanding from the client to the agency (including, without limiting the generality of the obligation set out in this clause, any debt collection and legal costs).

Last Updated: January 1, 2015