Loading…
18
Overheard a designer at a coffee shop say they never sign a contract without a kill fee clause.
They were telling their friend about a project that got canceled halfway through, and the client refused to pay for the work already done. I always thought a deposit was enough, but now I'm adding a 25% kill fee to my own contracts. How do you guys handle project cancellations in your agreements?
4 comments
Log in to join the discussion
Log In4 Comments
nora_webb516mo ago
Oh man, I learned that lesson the hard way too (with a client who ghosted after three rounds of revisions, classic). A deposit is good, but a kill fee is a lifesaver. I do 50% upfront for any project, and then a 30% kill fee if they bail after the work has started. It just covers the time you can't get back, you know?
3
shane_wilson3mo ago
Nora's got it right. Same deal everywhere now, not just freelance work.
3
nathan_kim6mo ago
My buddy Jake had a client vanish after he'd already built the custom cabinets for their kitchen remodel. He got the 50% deposit, but that didn't touch the 80 hours he'd put in after that. A kill fee like @the_rose is asking about would have saved him. Now he has a line in his contract for 25% of the total project cost if they cancel after materials are ordered. It's not about making extra money, it's about paying your crew for the work they already did.
0