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Can we talk about a clause I saw in a contract template about 'killing fees'?
I was looking at a contract template from a freelance writer's group, and it had a section for a 'kill fee' of 25% if the client cancels the project after the work is started but before final delivery. I'd never seen that spelled out before (I usually just have a deposit). It made me think about how to handle mid-project cancellations fairly, especially for work that can't be resold. Do you think a 25% fee is standard, or is that too low for something like a half-finished website design? How do you all handle this in your own contracts?
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ivanp786mo ago
Miaprice makes a good point about billing for actual work done. Would a kill fee plus payment for hours already logged be more fair than a flat rate?
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jennybailey5mo ago
Yeah, @ivanp78 has a point. Used to be all about the flat fee, but billing for hours already worked just makes more sense. Otherwise you're eating that cost for nothing.
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miaprice6mo ago
You said "mid-project cancellations," but that kill fee is for after work starts, not necessarily halfway through. A flat 25% is low for a half finished project because you can't bill for the time you already spent. It should be based on the work completed, like an hourly rate up to that point.
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karenc206mo ago
Wait, you think 25% is low for a half-finished job? That's crazy! If someone cancels when I'm halfway done, I've already used up my time and can't take other work. A flat kill fee doesn't cover that at all. They should pay for the hours I put in, not some random small number. Otherwise, I'm just losing money for no good reason.
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