Contract clause library
A kill-fee clause explains what becomes payable if the client cancels after capacity has been reserved or work has begun.
Direct answer
A kill-fee clause explains what becomes payable if the client cancels after capacity has been reserved or work has begun.
Definition: A kill fee is an agreed cancellation charge intended to address completed work and capacity reserved for the project.
Start with the project fact: what was approved, what changed, and who can authorize the next step. Customize the wording so it matches your agreement and normal client channel.
State any fee and schedule impact together. Do not begin changed work until the client gives written approval and the current project plan reflects the decision.
Use this as a practical starting point. Replace every placeholder with a fact from the approved project.
If Client cancels for convenience, Client will pay for work completed plus the cancellation fee stated in the payment schedule. Rights transfer only for amounts paid in full.
Use it before ambiguity turns into unplanned work. For contract language, include it before kickoff; for a client script, send it as soon as a request changes the approved plan.
No. This is practical business wording, not legal advice. Adapt it to your agreement and ask a qualified lawyer about legal requirements in your jurisdiction.
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Educational information only; not legal advice. Review contract language for your jurisdiction and circumstances.
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