What can I do if a company incorrectly produced the due diligence? Posted on August 04, 2011

There are four main computer programs that help motion picture production companies come up with the allocation of their budgets. I noticed a trend that special makeup effects companies were being financially squeezed out of the bidding process because these programs were mistakenly calculating far lower amounts than was healthy. They would "red flag" quotes that would be larger than their calculated costs. Because of the widespread use of these programs Special makeup effect companies were overwhelmed by lower financial restrictions and were forced to take on those projects at lower rates in order to survive. Many of them collapsed under this burden. I approached the software makers and received responses from two of them. It seems that they incorrectly calculate budgets based on faulty information. For instance, they approached unions in order to form their calculations but no union controls the costs or is knowledgeable in the facets of special makeup effects. Because of this I (any many other companies in this industry) are receiving irreparable harm and the possibility of closure because these companies have not produced the correct due diligence in these numbers.

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