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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?
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nora_webb513d 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?
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nathan_kim3d 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.
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