Hiring a Screenwriter: Contract Terms for Film Development (Production Company Guide)

Meta Description: Hiring screenwriters? Essential contract terms for production companies commissioning film scripts and screenplay development.

Hiring a screenwriter is one of the most consequential early decisions in film development. For production companies commissioning scripts, the creative upside is obvious—but so is the legal and commercial risk if the paperwork is vague. A clear hire screenwriter contract protects your chain of title, sets realistic expectations on deliverables and rewrites, and prevents expensive disputes when you move from development to financing.

This guide walks production companies through the most important screenwriter contract terms to include in a screenplay writing agreement or film script writing contract, with practical notes on what to negotiate and why.

This blog is educational and not legal advice. Laws and union rules vary by territory; consult entertainment counsel for your project.

---

Why contract clarity matters in screenplay development

In development, most problems come from mismatched assumptions:

• You thought you were buying all rights; the writer believed you were licensing a draft.
• You expected multiple rewrites; the writer priced for one pass.
• You needed a clean chain of title for a sales agent; the contract left underlying rights unclear.
• You planned to attach talent; the writer wanted approval or consultation rights not discussed.

A strong screenplay writing agreement gives you (1) a usable script, (2) the legal rights to exploit it, and (3) a predictable process for development.

---

The core structure of a screenwriter deal (what you’re really contracting for)

Most production companies use one of these models:

1. Commissioned original screenplay: You commission a writer to create an original work tailored to your brief.
2. Adaptation: You commission a writer to adapt underlying rights (book/article/life story) you control or are acquiring.
3. Rewrite/polish: You hire a writer to rewrite or polish an existing draft, sometimes as a “script doctor.”
4. Step deal: Payment and scope are broken into steps (treatment, first draft, rewrite, polish), with acceptance gates.
5. Option + purchase (writer as rights holder): The writer controls an existing script and you option it, then purchase upon exercise.

Your film script writing contract should match the reality of the engagement. For a commissioned spec, you’ll focus on deliverables and ownership. For a rewrite, you’ll focus on scope, credit, and access to prior materials. For an adaptation, you’ll focus on underlying rights and warranties.

---

Essential contract terms when you hire a screenwriter

1) Scope of work: define exactly what you’re buying

A surprising number of disputes start with “We thought this included…”.

In your hire screenwriter contract, specify:

• Format and length (feature, TV pilot, short; target page range)
• Genre/tone references (comparables can help, but avoid overpromising)
• Materials included (logline, synopsis, beat sheet, treatment, bible, pitch deck support)
• Research expectations (interviews, fact-checking, travel—who pays?)
• Delivery format (Final Draft file, PDF, fountain format, versioning)

Tip: Put deliverables in a schedule exhibit so later revisions to the brief don’t accidentally expand the writer’s obligations.

---

2) Development steps and rewrite mechanics

Most production companies need iteration. Writers need boundaries.

Common steps:

• Step 1: Treatment / outline
• Step 2: First draft
• Step 3: Rewrite (based on one consolidated set of notes)
• Step 4: Polish (dialogue/structure refinement, limited scope)

In your screenwriter contract terms, spell out:

• Number of rewrites/polishes included
• What triggers a rewrite (receipt of consolidated notes, a story meeting, etc.)
• Turnaround times for each step
• What counts as a “new draft” vs minor revisions
• Out-of-scope changes (new characters, new ending, new setting, new act structure)

Buyer-friendly standard: One set of consolidated notes per step and a fixed number of included rewrites. If you want “unlimited revisions,” expect the fee to reflect that (and the schedule to drift).

---

3) Timeline, milestones, and delivery/acceptance

Your development slate is a calendar problem. Make the schedule contractually operational.

Include:

• Start date (or conditions precedent—e.g., delivery of materials)
• Milestone due dates
• Delivery method (email + shared drive, naming conventions)
• Acceptance process (how long you have to review, what constitutes acceptance)

A balanced approach:

• The producer has X business days to review and provide notes.
• If the producer doesn’t respond, the draft is deemed accepted for purposes of moving to the next step (but not necessarily final acceptance).

Also include a pause/hold clause if your financing or package timing may cause development to stall, with clear rules on when the writer must resume.

---

4) Compensation structure: fee, steps, and payment timing

Fees often depend on writer profile, project profile, jurisdiction, and union requirements.

Your screenplay writing agreement should address:

• Total fee and how it’s allocated (per step)
• Payment triggers (on commencement, on delivery, on acceptance)
• Kill fees (if you stop the project midstream)
• Expenses (research, travel, transcription, clearance support)
• Late payment terms (interest, suspension rights)

Step deals help production companies manage risk: you only pay for the next step if the previous step meets the agreed criteria.

---

5) Rights granted: assignment vs license (and what you need for chain of title)

For production companies, chain of title is everything—financiers, distributors, and insurers will scrutinize it.

In a film script writing contract, clarify:

• Are you receiving an assignment of all rights, or a license?
• Is it exclusive?
• Is it worldwide?
• Does it include all media now known or later devised?
• Does it include sequels, remakes, spin-offs, series, and other derivative works?

If the script is commissioned and you want maximum certainty, you typically want an assignment of copyright (or the fullest rights transfer permitted in your jurisdiction), effective upon payment.

Note: “Work made for hire” language works differently depending on country. In some places it’s limited or not recognized in the same way as in the U.S. Draft with local counsel.

---

6) Underlying rights (adaptations): confirm who controls what

If you’re adapting a book, article, podcast, life story, or existing IP, your agreement should be consistent with:

• Your option/purchase agreement for underlying rights
• Any author approvals or reserved rights
• Credit requirements (e.g., “Based on the novel by…”)

Your writer should warrant that they are not bringing in third-party protected material beyond what you’ve authorized. Conversely, you must confirm you have the rights to provide the material to the writer.

---

7) Credit: define expectations early (and avoid creative deadlocks)

Credit can become emotional and expensive. Your screenwriter contract terms should define:

• Screenplay by / Written by / Story by expectations
• Whether credit is subject to guild determination (if applicable)
• Whether the writer gets credit if you hire subsequent writers
• Placement and size (main titles, end credits, marketing)
• Credit arbitration procedures (if under WGA or other guild rules)

If you operate in WGA territory or employ WGA members, you’ll need to comply with guild requirements. Even outside the guild context, you should define a fair, workable framework.

---

8) Creative control, approvals, and consultation rights

From a buyer perspective, avoid granting approvals that could block development.

Common compromise positions:

• Writer has consultation rights (meaning you’ll seek input in good faith)
• Writer may receive draft notes and attend a limited number of meetings
• Producer retains final creative control

Your hire screenwriter contract should clarify whether the writer has:

• Any approval over director, cast, or producer attachments (typically avoided)
• Any approval over changes to script (typically avoided)
• Any right to remove their name (rare; sometimes negotiated)

---

9) Exclusivity and availability (especially for time-sensitive slates)

If you need a writer available for revisions during a financing window, define:

• Exclusivity (full or partial)
• First call / first negotiation / first refusal on future writing services
• Hold periods (with compensation if you “hold” them)
• Conflicts (other projects, TV staffing, advertising work)

Avoid overreaching: full exclusivity without pay is rarely enforceable or attractive. Instead, use availability commitments tied to paid steps.

---

10) Confidentiality and publicity restrictions

Because projects are often stealth until announced, include:

• Confidentiality obligations (script, pitch, attachments, budgets)
• Restrictions on social media announcements
• Whether the writer can list the project on IMDb or their portfolio (and when)

Also address who can speak to press and when.

---

11) Warranties, representations, and indemnities

Your insurer (E&O) and distributors will care that the script won’t trigger claims.

Typical writer warranties include:

• The work is original
• No infringement of third-party rights (copyright, trademark, privacy)
• No defamation (or at least no knowingly defamatory statements)
• The writer hasn’t granted conflicting rights
• The writer disclosed any AI use (if your policy requires it)

Indemnities should be proportionate. A common approach is:

• Writer indemnifies for breach of warranties
• Producer indemnifies for changes made without writer involvement (or for producer-supplied materials)

---

12) Moral rights and waivers (jurisdiction-dependent)

In some jurisdictions, writers may retain “moral rights” such as the right to object to derogatory treatment.

Where legally permitted, contracts often include:

• A waiver of moral rights
• Or an agreement not to assert them to the extent allowed

Because enforceability varies widely, this is one to tailor carefully.

---

13) AI, tools, and authorship clauses (increasingly important)

Production companies are increasingly adding terms about:

• Whether the writer may use generative AI tools
• Required disclosure of AI-assisted content
• Data security (no uploading confidential materials to unapproved tools)
• Ownership and originality assurances despite tool use

If your company has an AI policy, incorporate it by reference and keep it specific (approved tools, banned uses, disclosure).

---

14) Termination, suspension, and “turnaround”

Development is uncertain. Your screenplay writing agreement should specify:

• When you can terminate for cause (missed deadlines, breach)
• Whether you can terminate for convenience (and what you owe)
• What happens to rights upon termination (do you keep drafts you paid for?)
• Turnaround: if the project stalls, can the writer reclaim rights and shop it?

From a buyer standpoint, you typically want:

• A defined period where you can exploit the script
• Rights to use paid-for materials even if you don’t proceed
• Clear kill fees rather than open-ended obligations

---

15) Assignment, subcontracting, and third-party producers

If your company may bring in:

• Co-producers
• A studio partner
• A financier
• A distributor needing rights directly

…include the ability to assign the agreement (or grant sublicenses) without needing writer consent, subject to continuing payment obligations.

Also address whether the writer can subcontract (usually “no” without written consent).

---

16) Practical legal boilerplate that matters more than you think

In creative deals, boilerplate is not “just boilerplate.”

Include:

• Governing law and venue
• Dispute resolution (court, arbitration, mediation)
• Notices (email allowed?)
• Entire agreement and amendment rules
• Force majeure (strikes, shutdowns)
• Relationship (independent contractor vs employee)
• Tax forms and withholding responsibilities

---

Common pitfalls production companies should avoid

1. Vague deliverables (“a screenplay”) without step definitions or acceptance criteria
2. No rewrite limits, leading to endless notes and resentment
3. Unclear rights transfer, creating chain of title issues later
4. Credit assumptions that collide with guild rules or later writers
5. No AI/confidentiality policy, risking leaks or tool-based IP ambiguity
6. No termination plan, leaving you with partial drafts and unclear usage rights

---

A sample (buyer-friendly) deal framework you can adapt

For many indie features, a workable structure is:

• Step 1 (Treatment): 10–20 pages; fee paid 50% on start, 50% on delivery
• Step 2 (First Draft): due 6–8 weeks after treatment approval
• Step 3 (Rewrite): one rewrite included based on consolidated notes
• Optional Polish: separately priced, limited scope
• Rights: exclusive worldwide assignment upon full payment
• Credit: subject to applicable guild rules; otherwise defined in contract
• Confidentiality + AI clause: aligned with your internal policy
• Termination: kill fee per step; rights in paid materials remain with producer

This isn’t “one size fits all,” but it’s a solid starting point for a film script writing contract that respects both business needs and creative workflow.

---

Frequently asked questions (production company edition)

Is a “work made for hire” clause enough when we hire a screenwriter?

Not always. In many jurisdictions, “work made for hire” has strict requirements or limited recognition. Production companies often use a combination of work-made-for-hire language plus a present assignment of rights as a backstop in the hire screenwriter contract.

Should we pay per draft or a flat fee?

Per-step pricing is usually cleaner in development because it ties payment to deliverables and keeps rewrite scope defined. Flat fees can work for experienced writer–producer teams with a shared process, but are riskier if expectations shift.

What if we want to bring in another writer later?

Plan for it up front: ensure your screenwriter contract terms allow you to hire additional writers, define how credit is determined, and confirm you own/retain the right to create derivative drafts based on the paid material.

Do we need an NDA if we already have confidentiality in the contract?

Often no—confidentiality provisions in the screenplay writing agreement can be enough. But if you’re sharing materials before you’ve signed the main deal, a short NDA can bridge the gap.

What’s the difference between an option agreement and a writing commission?

An option typically applies when the writer already owns an existing script and you’re buying time to set it up. A commission applies when you’re hiring the writer to create or rewrite material for you under a film script writing contract.

---

Other questions to keep learning (and improve your next deal)

• How do WGA rules affect screenplay fees, credit, and rewrite assignments for my project?
• What chain-of-title documents will my financier, sales agent, or distributor require?
• What are reasonable rewrite limits for a first-time screenwriter vs a veteran?
• How do I structure “producer notes” to avoid scope creep and missed deadlines?
• What should I include in an AI policy for writers and development materials?
• How do I handle life rights, privacy, and defamation risk in “based on true events” scripts?
• When should I use a step deal vs an option/purchase structure?
• What E&O (errors and omissions) insurance requirements should I bake into the agreement?

---

Final takeaway: treat your screenplay contract as part of your production strategy

A well-drafted hire screenwriter contract isn’t just legal protection—it’s a development roadmap. When your screenplay writing agreement clearly defines deliverables, rewrites, timelines, rights, and credit, you reduce delays, protect chain of title, and make your project easier to finance and sell.

If you want a faster way to generate a solid first draft of a screenwriter agreement tailored to your project details, you can use Contractable, an AI-powered contract generator, at https://www.contractable.ai.