Kill fee: how to protect yourself when a project gets cancelled
A kill fee is a pre-agreed amount the client pays if they cancel mid-project. It protects your calendar and compensates you for ramp-up, opportunity cost and partial delivery.
When to use
- Discovery + design projects where the client can pivot
- Longer builds where scope changes often
- Any project without a guaranteed minimum spend
Red flags
- Client won’t commit to minimum spend
- They want ‘cancel anytime’ without cost
Copy/paste clause lines
Plain text — edit for your jurisdiction
If the project is terminated for convenience, the client will pay for work completed to date plus a kill fee equal to 25% of the remaining project value.
Negotiation moves
- Offer a lower kill fee if they pay a deposit
- Tie kill fee to phase boundaries (e.g. after discovery, after build start)
FAQ
Kill fee · FAQ
What is a typical kill fee percentage?
Often 10–30% of remaining fees, depending on ramp-up cost and how hard it is to replace the work quickly.
Related
Other clauses
Further reading
Keep reading
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Editorial guidance only. This is not legal advice. Laws vary by jurisdiction and contract type. Use this as a starting point and consult a qualified lawyer for high-stakes agreements.