Kill Fee Clauses: How to Get Paid When a Client Cancels Your Project

A client commissions a brand identity project. You spend three weeks on research, strategy, and initial concepts. Then the client calls: the project is “on hold indefinitely.” Without a kill fee clause, you have a choice between accepting nothing and pursuing an expensive legal dispute over reasonable compensation for work already done.

A kill fee clause solves this at the contract stage. It defines what you're owed if a client cancels — before cancellation happens, before emotions are involved, and before either party has anything to lose by agreeing.

What Is a Kill Fee?

A kill fee is a contractually defined payment triggered when a client cancels a project before it is complete. It is not a penalty — it is compensation for the work you have already done and the work you turned away to take the cancelled project.

The term originated in publishing and journalism, where editors would commission articles and sometimes “kill” them before publication. The kill fee — typically 25–50% of the agreed fee — compensated the writer. The concept translates directly to freelance design, development, copywriting, photography, and any other project work.

Kill fees are distinct from payment for completed milestones. If a project has three milestones and the client cancels after milestone two, you should receive payment for milestones one and two in full, plus the kill fee on the uncompleted work.

How Kill Fees Are Calculated

Kill fees are expressed either as a percentage of the remaining contract value or as a fixed amount. Percentage-based kill fees are more common and easier to justify to clients.

Common structures:

• Flat percentage of total contract value (e.g. 25%): simple, easy to communicate, but does not reflect how far into the project you are when cancellation happens
• Sliding scale based on project stage: the further into the project, the higher the kill fee percentage — fairer to both parties
• Payment for work completed plus a fixed cancellation fee: the most transparent approach; you invoice for actual time spent and add a separate cancellation charge

A sliding scale that works well for project-based freelancers:

• Cancelled before work begins: 0% (deposit retained if applicable)
• Cancelled in the first third of the project: 25% of remaining fee
• Cancelled in the middle third: 50% of remaining fee
• Cancelled in the final third: 75% of remaining fee

For day-rate or time-based engagements, a simpler approach is to invoice for all time worked plus a cancellation charge equal to the notice period in your contract. A two-week notice period means you're paid for two weeks' lost work on cancellation.

Kill Fee vs Termination for Convenience

A termination for convenience clause allows either party to end the contract without cause. A kill fee is what the client owes when they exercise that right.

Many contracts include a termination-for-convenience clause but no kill fee. The client can cancel at any time, with notice, and owes you only for work completed to date. If you have not yet started the work, they may owe you nothing at all.

The fix is simple: pair the termination clause with an explicit kill fee. The client retains the right to cancel — which is commercially reasonable — but the cost of doing so is defined and fair.

For a full picture of what termination clauses look like and what to negotiate, see red flags in freelance contracts.

What Good Kill Fee Language Looks Like

A complete kill fee clause for a project-based contract:

Adapt the phase names to your actual project structure. For simpler projects, a flat 50% of the remaining fee is standard and easier to include without negotiation.

When Kill Fees Apply (and When They Don't)

Kill fees apply when a client cancels a project that was underway for reasons unrelated to your performance. They typically do not apply when:

• You have materially failed to deliver work as specified and the client terminates for breach
• Cancellation results from an unforeseeable event outside either party's control (force majeure) — though good force majeure clauses still protect your right to payment for work completed
• The client exercises a contractual right to pause rather than cancel (check whether your contract distinguishes between pausing and cancelling)

Beware contracts that allow clients to pause projects indefinitely without triggering a kill fee. A pause that lasts six months is effectively a cancellation. Consider capping the pause period — if the project does not resume within 60 or 90 days, the pause converts to cancellation and the kill fee applies.

How to Negotiate a Kill Fee Into Your Contract

Kill fees are more widely accepted than most freelancers expect. The framing matters:

Frame it as mutual protection. A kill fee clause works both ways — if you cancel, the client has a defined remedy. Presenting it as a mutual provision removes the adversarial framing.

Start with a reasonable rate. A 25–50% kill fee on uncompleted work is standard. Starting at 75% invites pushback; starting at 50% is more likely to be accepted without amendment.

Tie it to a deposit structure. A 25% upfront deposit that converts to the kill fee if the project is cancelled before it starts removes friction. The client has already paid; the kill fee is simply the deposit being applied.

For broader negotiation tactics, see our guide on how to negotiate freelance contracts.

Kill Fee Clause Checklist

Before you sign, check:

• Does the contract include a cancellation or kill fee clause at all?
• Is the kill fee calculated as a percentage of remaining work or a fixed amount?
• Is the calculation basis clear and unambiguous?
• Does the kill fee cover uncompleted work, or only completed work?
• Is there a payment deadline for the kill fee (ideally 14 days from cancellation)?
• Does the contract address project pauses separately from cancellations?
• Is there a cap on how long a project can be paused before the kill fee triggers?

FAQ

Are kill fees legally enforceable?

Yes, in most jurisdictions, contractually agreed kill fees are enforceable as liquidated damages provided they represent a genuine pre-estimate of loss rather than a penalty. A kill fee tied to a percentage of uncompleted work is generally treated as a genuine pre-estimate and will hold up.

What's the difference between a kill fee and a deposit?

A deposit is paid upfront and may be credited against the final fee or retained on cancellation. A kill fee is triggered by cancellation. Many contracts combine both: the deposit is paid at signing, and if the project is cancelled, the deposit is retained and counted as part of the kill fee.

What if the client's standard contract has no kill fee clause?

Add one as part of your contract review before signing. Most clients will accept a kill fee clause if it is reasonable and framed correctly. If the client refuses any kill fee, that refusal tells you something about how they operate. See our guide on what to check in a freelance contract.

Can I charge a kill fee if I decide to cancel the project?

Only if your contract includes a mutual cancellation clause that applies to both parties. A one-sided kill fee that only protects the freelancer is unlikely to be accepted without modification. Mutual provisions are fairer and easier to agree.

What percentage kill fee is standard?

25–50% of the remaining contract value is standard across creative industries. Higher rates (up to 75%) are used in editorial publishing and film/television production where project abandonment creates significant sunk costs. Match the rate to your actual cost exposure.

BeforeYouSign is an AI-powered educational tool. It does not provide legal advice. Always consult a qualified legal professional before making binding legal decisions.