These guides explain common practice. They are not legal advice. Contract law differs between countries and states, so have a local lawyer check any contract before you rely on it.
What a kill fee is
A kill fee is what the client pays if they cancel a project after it has started. It is common in writing, design and other creative work. Its job is to pay you for the time you have spent and the work you turned down to make room for the project.
Common ways to set it
- ✓Pay for work done: the client pays for the hours or milestones completed so far, at the agreed rate.
- ✓A percentage of the total: a set share of the full fee, which can rise as the project progresses.
- ✓Keep the deposit: the deposit covers early cancellation, and work done beyond it is paid on top.
- ✓A notice period: for retainers, the client gives a set notice, for example 30 days, and pays for that period.
There is no single right number. Choose what reflects the time you reserve and how hard it is to fill a gap at short notice.
Cancellation works both ways
A fair clause also says how you can end the agreement: for example if the client does not pay, stops responding for a set period, or asks for something unlawful. Say what notice you will give and what the client receives, such as the work completed and paid for to date.
What happens to the work
Say who owns partly finished work after a cancellation. A common approach is that the client receives the work they have paid for, and anything unpaid stays yours. Link this to your ownership clause so the two never contradict each other.
Pauses are not cancellations
Clients often go quiet rather than cancel. Add a line for that: if the project is paused for longer than a set time, you can invoice for work done, and restarting is subject to your availability and possibly a new schedule. This stops an abandoned project from sitting open for months.
How to word it so clients agree
Keep it short, specific and calm. "If you cancel after work has started, you pay for the work completed to that date, and the deposit is not refunded" is easy to accept. Mention it in your summary page and on the kickoff call, so it is never a surprise.
Cancellation clauses, with alternatives to choose from. Every contract in the Creative Contract Bundle includes a cancellation clause, and its clause library gives alternative wording for cancellation, deposits, revisions, scope, late fees, ownership and AI tools, so you can pick the version that fits how you work.
View in the StoreFrom the Stelaah Store
- ✓Creative Contract Bundle. Seven freelance contract templates in Word and PDF (social media, video, web design, graphic design, copywriting, consulting and virtual assistant) plus a clause library.
- ✓Graphic and Brand Designer Contract. A graphic and brand designer contract template in Word and PDF with a one minute client summary, covering deposit, revisions, scope, late fees, ownership and AI use.
- ✓Consultant Contract. A consultant contract template in Word and PDF with a one minute client summary, covering deposit, revisions, scope, late fees, ownership and AI use in plain words.
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