Hmmm, … I’ve done some indie stuff years ago and the recorded sound was partly unusable.
Budget… they had a hard time spelling that word… Basically, there was hardly enough to finish the movie at all.
When discussing some spots in the film, were the sound was just too bad, I made some point in explaning that it might take almost as long to fix the sound to a usable level, than to do some ADR.
Actors came in mostly pro bono to help the project and some reduced rates on my behalf got the film ready and reasonably well sounding. For the studio it could well count as a little financial bummer, but hey, you learn from doing things, too.
I suggest to put in a little clause that gives room for re- negotiations when things get just too bad. Especially if you share the standpoint that there should not be any crap leaving the studio. It usually falls on your feet, soon enough. Reputation counts a lot and it is rather quickly destroyed for a long time.
Cheers, Big K