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Freelance Kill Fee Clause for Cancelled Projects

A kill-fee clause explains what becomes payable if the client cancels after capacity has been reserved or work has begun.

By ScopeShieldPublished Content reviewed Methodology & product disclosure

Direct answer

What you need to know

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.

Verify the trigger against the agreement

A kill fee is an agreed cancellation charge intended to address completed work and capacity reserved for the project.

  • You reserve substantial capacity
  • The engagement has phased milestones
  • Cancellation would leave unrecoverable time

Complete the approval record

Attach this wording to project-specific quantities, deadlines, and approval roles. Match the wording to the rest of the agreement. Do not treat this sample as a jurisdiction-specific legal conclusion.

  • Replace placeholders with facts from the approved project
  • State fee and timing impact together
  • Name the person or reply that counts as approval
  • Record approval before changing the work plan

Copy-and-customize wording

Use this as a practical starting point. Replace every placeholder with a fact from the approved project.

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If Client cancels for convenience, Client will pay for work completed plus the cancellation fee stated in the payment schedule. Deliverable rights and any transfer conditions remain governed by [agreement section].

How to apply it

  1. Replace placeholders with facts from the approved project
  2. State fee and timing impact together
  3. Name the person or reply that counts as approval
  4. Record approval before changing the work plan

Use with care

  • Match the wording to the rest of the agreement
  • Avoid promises that conflict with local law or existing terms
  • Have a qualified lawyer review contract language for your jurisdiction

Frequently asked questions

When should I use this clause?
A kill-fee clause explains what becomes payable if the client cancels after capacity has been reserved or work has begun.
Is this legal advice?
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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